Summary: This article provides a brief overview of the “tripartite” relationship between an insurer, its insured, and panel counsel and the theories under which a direct action can be brought by the insurer against panel counsel for legal malpractice. The “tripartite” relationship refers to the relationship among an insurer, its insured and defense counsel retained…
Summary: A Florida appellate court recently held a title agent’s consultation with an attorney to prepare a note and mortgage may have created an attorney-client relationship between a lender and the attorney, despite no direct communications between the lender and attorney. Additionally, the creation of such relationship may have triggered a duty by the attorney…
Summary: Limitation of liability clauses are not favored in the eyes of the law, but they are often upheld by the courts. To be effective, it is important the clause be reasonable and specific. An enforceable limitation of liability clause may drastically limit the potential liability of the professional. Professionals use contracts on a regular…
Summary: This article will discuss how a professional, especially an accountant, should respond when receiving a subpoena to produce documents and/or appear for a deposition. Many professionals, especially those in the accounting field, have received a subpoena to produce documents and/or appear for a deposition in a lawsuit. It is critical the professional takes steps…
Summary: This article reviews the importance of attorneys maintaining professionalism in all legal proceedings. The article reviews a recent Florida case resulting in disbarment of an attorney after alleged disruptive acts during trial and a post-trial hearing. It goes without saying that as professionals, attorneys are obligated to maintain professionalism at all times and to…
For most electricians, the thought of having to get yet another license is a nightmare. Now don’t freak out, but Missouri’s legislature has created one more license for electricians. This new license, however, may not be the nightmare you expect. In fact, many are calling this new license the relief Missouri has desperately needed. Up…
In our first segment, we discussed the basic coverage provisions of a professional liability insurance policy and the concept of wasting policy limits. In this second segment, we will talk about exclusions commonly found in a professional liability insurance policy. Common Exclusions: Bodily Injury and Property Damage: Except for certain professionals such as medical providers…
Professional liability insurance, often presented in the form of an “errors and omissions” policy, is a form of liability insurance providing coverage for claims made as a result of professional advice or services. Professionals including attorneys, accountants, engineers, architects, insurance brokers/agents, and real estate brokers/agents should maintain professional liability insurance to protect their businesses and…
There’s a case from 2015 that’s worth looking at again for insurance agents in Illinois. This was the one where the Illinois Supreme Court decided that a person who has to be licensed to sell insurance in Illinois has a duty to “exercise ordinary care and skill” in renewing, procuring, binding, or placing coverage. The…
An accounting firm does auditing work for a public company. The sole shareholder and president of the public company commits fraud, but the accounting firm allegedly should have caught it. Nicholson v. Shapiro & Associates, LLC Can the accounting firm successfully assert the in pari delicto (“in equal fault”) defense, which blocks a wrongdoer-plaintiff from…