Articles Posted in Legal Malpractice

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Hospital Sues Law Firm For Losses Related To Lehman Brothers

PASSAVANT MEMORIAL AREA HOSPITAL ASSOCIATION v. LANCASTER POLLARD & CO., Dist. Court, CD Illinois 2013 – Google Scholar.

This is a case alleging legal malpractice in the context of corporate law. Passavant Memorial Hospital has sued a law firm that allegedly provided negligent legal advice concerning a commercial transaction. The Hospital, acting on advice of the lawyers, attempted to terminate a bond interest swap. The notice of termination was sent by fax, not by regular mail. Lehman Brothers claimed it had no record of receiving notice. Litigation ensued and the Hospital was required to pay $2,975,000 to settle the litigation.  The lawyers were negligent because they sent the termination notice by fax, instead of by mail.

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O’KELLYN v. Dawson, 2013 PA Super 25 – Pa: Superior Court 2013 – Google Scholar.

This is a case where a lawyer was accused of legal malpractice for failing to properly document a settlement of a divorce case. The settlement related to an award of maintenance. The parties agreed on a certain amount. The lawyer did not draft up the papers and obtain the signature of the other spouse. As a result, the court entered a maintenance award that was substantially greater than the agreed upon amount.

The client was unhappy because he was required to pay far more maintenance than he agreed to pay. He sued the lawyer and, after a jury trial, obtained an award of damages in the amount of $100,363.64.

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ABRAMS, FENSTERMAN, FENSTERMAN, EISMAN, GREENBERG, FORMATO & EINIGER, LLP v. UNDERWRITERS AT LLOYD’S, Dist. Court, ED New York 2013 – Google Scholar.

Every year, when I receive my legal malpractice insurance application, there is always a question on whether I am an officer or director of an outside entity.

In this case, one member of the law firm was involved in an outside entity, a corporation, American Gulf Insurance, LLC, that allegedly fraudulently induced certain investors to invest in the company. The plaintiffs, in the underlying case, sued the law firm for fraud and legal malpractice. The plaintiffs alleged that the lawyers negligently advised them to invest in the entity. Howard Fensterman, one of the name partners of the law firm, was allegedly an owner of American Gulf Insurance. Fensterman allegedly had more than a passive role in the entity.

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Allison v. Commission for Lawyer Discipline, Tex: Court of Appeals, 14th Dist. 2012 – Google Scholar.

The Texas Court of Appeals has affirmed a suspension for a lawyer who missed deadlines in an immigration matter and whose client was deported as a result.  This is a case where a lawyer’s neglect of a matter results in professional discipline.  The court rejected the lawyer’s argument that the client was difficult to reach.

The rule is quoted below:

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Excess Insurer Can Bring Legal Malpractice Claim Against Lawyer

ACE AMERICAN INSURANCE CO. v. SANDBERG, PHOENIX & VON GONTARD, PC., Dist. Court, SD Illinois 2012 – Google Scholar.

This is a dispute between an insurer and the lawyers who were hired to defend a case. Illinois has recognized that an insurance company has a right to sue defense counsel for malpractice. Illinois has never decided whether to allow an excess insurer to bring such a lawsuit.

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Lawyer prevails in dispute with malpractice insurer in legal malpractice case

Foster v. WESTCHESTER FIRE INSURANCE COMPANY, Dist. Court, WD Pennsylvania 2012 – Google Scholar.

This is a dispute between a lawyer and his legal malpractice insurer. One of the major trends in recent years is the coverage lawsuit filed by the insurance company against the lawyer.  Legal malpractice insurance is usually purchased for a one-year period.  The insurer agrees to indemnify and defend the insured against any and all claims arising in that year and only that year.   The policies are known as “claims made” policies, which means the insurance company must receive the claim during the policy period or there is no coverage.

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Immigration Malpractice

Miranda v. Said, Iowa: Court of Appeals 2012 – Google Scholar.

This is an unusual case – legal malpractice in the immigration setting.  Plaintiffs won a verdict at the trial but appealed on the grounds that the trial court wrongfully barred their claims for mental distress damages, punitive damages and lost chance damages.

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Filed October 5.

This is a disciplinary case against Herbert Arthur Bates, an attorney in Illinois.  Bates was retained by a convicted criminal to handle his appeal.  Bates was paid $10,000.  Unfortunately, he missed numerous deadlines and the appeal was dismissed.  He also failed to return the transcripts to the inmate so the inmate could do the appeal by himself.  The ARDC Hearing Board recommended a suspension of eighteen months.  Bates ultimately refunded the money he was paid to handle the appeal.

The Panel explains:

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Legal Malpractice Case From North Carolina

Royster v. McNamara, 723 SE 2d 122 – NC: Court of Appeals 2012 – Google Scholar.

This is a legal malpractice case arising out of a litigation matter.  The plaintiff, Royster, was a defendant in the underlying case, a fraud case.

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Huber v. MUES, 2012 Ohio 2540 – Ohio: Court of Appeals, 2nd Appellate Dist. 2012 – Google Scholar.

This case would have been timely in Illinois, or many other states, but it was filed in Ohio, which has a one-year statute of limitations for legal malpractice.

Ohio does observe the discovery rule: “Claims arising out of an attorney’s representation are legal malpractice claims regardless of how they are pled. Katz, Teller, Brant & Hild, L.P.A. v. Farra, 2d Dist. Montgomery No. 24093, 2011-Ohio-1985, ¶ 13. Therefore, Huber cannot avoid the statute of limitation by characterizing his claim as alleging ordinary negligence.

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