With many courts expanding the responsibilities of attorneys to non-clients, both law firms and their insurers are likely to face increased financial exposure
Article Abstract:
Attorneys are liable to non-clients in an increasing range of situations and activities, almost always when the attorney's retention is explicitly meant to benefit the third party. The multifactor tort approach or California balancing test has also created greater exposure for lawyers and their insurers. Such liability first confronted estate-planning attorneys, and those preparing inter vivos gift transactions. Negligent misrepresentation is the area that has seen the greatest expansion, in some cases excessively so.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1995
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'Of counsel,' affiliates may trigger firm liability; firms may be vicariously liable for the misconduct of affiliates and other related lawyers
Article Abstract:
Law firms who have arrangements with 'of counsel' or affiliated lawyers can be vicariously liable when malpractice or discipline problems occur. Most examples concern lawyer disqualification, and disqualified 'of counsel' lawyers have usually been considered members of the firm. Few judicial guidelines concern civil damage liability consequences of this relationship, and even the ABA is uncertain about the meaning of affiliate relationships. Insurance coverage for all such relationships should exist.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1997
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Safety net may not hold: firms find not all malpractice insurers are created equal
Article Abstract:
Malpractice insurance has become increasingly important as suits against lawyers soar in number and cost, but policy buyers should carefully examine prospective insurers. Claims handling practices vary widely, and some insurers will use against it a firm's desire to aggressively defend a malpractice claim. The number of malpractice suits reaching appellate decisions tripled in the 1980s and is likely to rise another 155% in the 1990s.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1995
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