Thompson & Knight (T&K) were ordered to pay $960,000 in damages to its client Patriot Exploration for their work.  The problem arose as T&K was engaged by Patriot to represent them in a transaction where Patriot would obtain the right to use some land owned by Apollo Resources, Inc..  T&K listed “Apollo Resources” on the contract, but  the public records had Apollo Natural Gas (an affiliate company) on the title.  This led to a delay of numerous months and eventually Patriot engaged new lawyers to correct the contract and finish the negotiations.  The lost revenue from the delay and additional costs correcting the error made up the bulk of the $960,000 judgement for the law firm’s malpractice.

ProtectLawyers.com explains that while an incorrect name listed on a contract may seem benign, the repercussions can be large.  For firms of all sizes, simple mistakes, errors and omissions can lead to costly judgments.  Contact a broker to discuss how law firm professional liability insurance can be an integral part of your firm’s risk management.