Recent News

November 17, 2006

Privity and malpractice

Formerly only those mentioned in a contract in privity could be sued for damages. New court cases, however, have expanded the rights of third parties and possible malpractice claims are now of great concern to the business lawyer. The erosion of the attorney-client privilege barring non-client claims has placed a clear target on the back of business lawyers. Non-clients suffering unexpected losses now look to the lawyer’s deep pocket for compensation. The question becomes: “how do I avoid malpractice claims?”

“Business Lawyer’s Liability to Non-Clients” on Friday, Dec. 1 from 9:00 a.m. to 12:15 p.m. will advise you about when and where potential pitfalls lie and will provide practical insights on methods to avoid malpractice claims. This three-hour course features Gerald J. Todaro, Arnold Todaro & Welch, as he discusses duty beyond privity, including how privity is defined, Ohio case law imposing attorney liability to non-clients and immunity from liability to a third person.

Opinion letters and audit requests will be examined by Thomas L. Long, Baker & Hostetler, with regard to the ABA rules and internal investigations. John Nemeth will discuss representing partnerships and corporations in relation to officers and directors, the entity and investors.

In addition, Beatrice E. Wolper, Chester Willcox & Saxbe, will present hidden third party traps in family business transactions, delving into who is the client; issues the attorney may wish to consider before implementing a succession plan; questions and answers under the new Ohio rules for professional conduct; the attorney-client relationship including legal malpractice for negligence; liability to third persons; privity; defenses; preventative measures; fraud; and the effect of Sarbanes-Oxley.

James Brudney, Reminger & Reminger, will cover problems with liens and financial advice, including liability to third party beneficiaries for negligent estate planning, liability to limited partners by an accountant performing services for the partnership, liability to the shareholders of the corporate client, malice as the backdoor to privity and pointers for your practice to avoid malpractice claims.

Lawyers concerned about exposure to claims by third parties arising out of advice to clients on the formation, investment, and sale of businesses and various phases of business transactions will want to attend this program.

Register online at www.cbalaw.org or phone 614/221.4112 for event # 3631. The cost is $85 prepaid/$95 day of for members, $125 prepaid/$135 day of for non-members and $55 prepaid/$65 day of for paralegals.