Legal Malpractice

The Connection between the Economy and Legal Malpractice

By (Andrew Lavoott Bluestone)

We've noted in the past that many legal malpractice cases arise when attorneys work outside of their zone of experience.  As an example, there are unique rules for medical malpractice which do not exist elsewhere.  A certificate of merit is required to be filed with the complaint, and the failure to file it can have serious ramifications.  That obligation does not exist elsewhere.

Experienced medical malpractice attorneys know this; one-timers may not.  Beyond a special filing, an experienced practitioner has a bevy of experts and techniques to obtain the medical records, to review for deviations, to understand the case law in the area.  One-timers do not, and trouble may well ensue.

Injuryboard.com brings us this insight:  when the economy dips and attorneys take cases outside of their core areas, legal malpractice claims show an uptick. "Experts predict that the current economic downturn will give rise to an increasing number of legal malpractice lawsuits. Historically, claims against lawyers escalate during economic downturns.

There are several different reasons for the increase in malpractice claims: (1) assets lose value; (2) deals go sideways; and (3) attorneys start practicing outside of their core competence. This last reason is perhaps the most interesting.

Lawyers feeling economic pressure are more likely to retain work they would otherwise refer out to someone with more specific knowledge. We see this with increasing frequency when it comes to personal injury claims.

Instead of referring personal injury claims to personal injury attorneys, business and real estate and family law attorneys are starting to handle these claims to prop up their own sagging practices. This leads to a host of problems.

While personal injury claims can see simple on their faces, they are laced with complexities and really only can be competently handled by experienced practitioners. There are just too many "hidden" traps for the occasional practitioner."

Full post as published by New York Attorney Malpractice Blog on January 16, 2009 (boomark / email).