A failed business venture led plaintiff Herbert Feinberg to file three successive lawsuits.  The first was against his former business partner, the second against the CPA firm who compiled financial statements for the business and the third against the lawyer who represented Feinberg in the first case.

That third lawsuit was against attorney Jerome Boros – now of the law firm Bryan Cave.  The suit alleged that Boros failed to advise the plaintiff of his ability to limit estoppel in the arbitration which would have allowed the plaintiff’s suit against the accounting firm to have proceeded.  The jury concluded that Feinberg was right.  On appeal, however, Boros was granted judgement notwithstanding the verdict.  The appellate judge stated that it was not possible to limit estoppel in the original arbitration, and should not have been convicted in the underlying decision.

While significant because of the case law it establishes, this matter also highlights the need for attorneys to maintain cohesive professional liability insurance.  Boros performed the original work while at one law firm, but was sued while at a second law firm.  Lateral hires, mergers and acquisitions need special care as attorneys need to assure that their professional liability insurance remains uninterrupted and without gaps in coverage.  If your firm is discussing M&A or lateral hires, contact a broker at ProtectLawyers.com today to discuss how to best structure your insurance.