Ex-Executive Charged with Theft

The ex-CIO for Mayer Brown was charged with stealing over $850,000 by continuing to pay a contact after he was told to cancel it. The executive was an investor in the vendor.

ProtectLawyers.com reminds all it’s clients, large and small, that theft by employees can happen in any size firm and is often hard to catch before it becomes sizable.  It is also important to realize that not all employee theft insurance covers theft by an officer or partner.  Contact us today for a review of your current coverage form.

Illinois Malpractice Suit over Work Comp Benefits

An Illinois attorney is being sued after allegedly failing file a petition to reinstate a clients workers compensation benefits.

The plaintiff was injured in 2003, his claim was dismissed in 2006 and the attorney allegedly missed the 2007 cutoff to file.

This case demonstrates the need to properly structure claims made policy to allow reporting of claims years after the event took place, contact ProtectLawyers.com today to discuss better protecting your reputation and assets.

Texas Attorney’s Legal Troubles Continue

A Texas lawyer who was fired from his job as County Attorney for the wrongful prosecution of two whistle blowing nursing is in trouble again, this time being sued for “negligence, legal malpractice, gross negligence, breach of fiduciary duty, deceptive trade practices and fraud, while asking for the damages in excess of $500,00”.

Contact ProtectLawyers.com to discuss saving money on your malpractice insurance and better protecting your assets.

Film Financier wins $50M Verdict Against Former Attorney

A California film financier, Daivd Bergstein, has won a $50M verdict against his former lawer for committing malpractice and breaching her fiduciary duties. The verdict included $49,500,000 in direct damages and $500,000 in punitive damages. Bergstein has a number of lawsuits against ex-advisors working their way through the legal system.

ProtectLawyers.com works with clients to properly structure insurance programs that protect against allegations of wrongdoing that stretch across multiple policy years,

Law Firm Sues “Clients from Hell”

A Chicago based law firm has sued their former clients over filing a malpractice claim against the firm in an attempt to “shake them down”.

ProtectLawyers.com advises their clients to not accept clients blindly and to use firm engagement letters. Buying insurance allows the firm to continue to focus on their clients in the event they are faced with a malpractice suit.

ABA Adopts New Model Rule for Confidentiality During Lateral Hires

This week the American Bar Association adopted an amendment to Model Rule 1.6 and 1.17.  These rules address client confidentiality.  The amendments state that during the negotiation process for a merger, acquisition, sale of a practice or lateral hire, the law firms may exchange client information in order to detect conflicts of interests – so long as attorney-client privilege is not breached and the client would not otherwise be prejudiced.  Model Rules are guidelines only, but many states bars adopt these rules as their own.

Calculated Risk Advisors urges clients to discuss the insurance implications of lateral hires or M&A activity with a licensed broker.  It is necessary to review the current insurance in order to assure that no modifications are necessary before the transaction. Contact a broker today if your firm is contemplating entering into these types of negotiations.

Employment Law and Facebook

On August 1st, the Illinois Governor signed H.B. 3782 into law.  The bill addresses the use of social networking sites in the hiring process and prohibits an employer from asking a potential employee for their social networking information.  Social networking is becoming an important factor to consider in the hiring process. ProtectLawyers.com urges company to be careful when using social media websites in the interviewing process.  To protect a firm, it is important to obtain employment practices liability insurance and counsel from a law firm specialized in employment law. Contact us today for additional information on ways to protect your firm from lawsuits.

A television network in India has filed a suit against Nielsen Company in the New York State. The lawsuit alleges that Nielson’s Indian subsidiary, TAM Media Research, has manipulated ratings in exchange for bribes. New Dehli Television claims that nearly one billion dollars in advertising revenue was lost because of the false ratings.

While this particular case is new, ProtectLawyers.com reminds clients that violations of the Foreign Corrupt Practices Act (FCPA) are not new. Anyone advising international corporations need to train employees on the FCPA to prevent instances or allegations of bribery and other corrupt practices from being levied against the company. We advise any company operating internationally to purchase directors and officers liability coverage that provides limited coverage against FCPA claims.

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Olympic Risks

After losing a soccer match in the 2012 Olympics, a Swiss soccer player Tweeted a comment about the opposing team that was flagged as racist.  This caused him to be the second person expelled from the Olympics due to a discriminatory post, the first being Voula Papachristou – a Greek triple-jumper. ProtectLawyers.com consults clients that in the workplace, social networking can be an outlet for harassment and discrimination and should be monitored.  They also advise clients to obtain Employment Practices Liability insurance to protect them from this risk.

Chubb to “Cull” Professional Liability Book

During Chubb‘s 2nd Quarter 2012 Earnings Call CEO John Finnegan announced that the carrier is “culling” it’s professional liability book of business. Chubb writes $1.09B of professional liability and reported a combined ratio of 98.2% on the book.

Finnegan stated “We’d like the professional liability business long-term, but current market conditions being what they are, this is not the time to be aggressively growing the book. We are willing to accept the decline in retention and new business as we re-profile the book for improved profitability.”

Directors and Officers liability was specifically addressed by the company but they did not comment on whether the re-underwriting would affect Lawyers Professional Liability.

A transcript of the Chubb call is available at: http://bit.ly/M6xao6

Contact ProtectLawyers.com with any questions on the current state of the LPL market.