Professional Liability

News & Analysis as of

Texas Court Holds Insured Failed to Timely Report Claim

In its recent decision in Netspend Corp. v. AXIS Ins. Co., 2014 U.S. Dist. LEXIS 97656 (W.D. Tex. July 18, 2014), the United States District Court for the Western District of Texas had occasion to consider what constitutes a...more

California Dividend Statutes Found To Preempt Common Law Claims

Chapter 5 of the California Corporations Code imposes specific limitations on “distributions to shareholders”, a term defined in Corporations Code section 166. Directors who approve the making of any distribution to...more

Roitelman: Director Not Liable Where Employee Engages In Deceit

The Tax Court of Canada recently considered whether a director could establish a due diligence defence with respect to unremitted source deductions where the responsibility for remittance lay with an employee in Roitelman v....more

Principal Architects on Residential Projects Liable for Construction Defects Outside Their Control; Developers and Owners May Pay...

On July 3, 2014, the California Supreme Court decided the much watched case Beacon Residential Community Assoc. v. Skidmore, Owings & Merrill, LLP. The court held that the “principal architect” “owes a duty of care to future...more

The California Supreme Court Decides In Favor Of Homeowners In Disputes With California’s Architects

In the case of Beacon Residential Community Association v. Skidmore Owings and Merrill et. al. (July 3, 2014, S208173) Cal.4th, a condominium homeowners association, sued the developer of the project and the project architect...more

Telemedicine and Mobile Health Innovations Amid Increasing Regulatory Oversight

The growing mobile health market is rapidly transforming health care delivery. More than 80 percent of physicians use mobile technology to provide patient care, and more than 25 percent of commercially insured patients use...more

SEC Charges Auditor of PRC Firm With Unprofessional Conduct

The Commission filed another proceeding against an audit firm and its partners arising out of the audit of a PRC issuer. Unlike earlier actions involving audit firms for Chinese issuers, in this case the difficulties did not...more

California Court Limits Liability for Loss of Certain Patient Information under CMIA

California appellate courts are clarifying potential liability under California’s Confidentiality of Medical Information Act, Cal. Civ. Code § 56 et seq. (“CMIA”) of health care providers, health plans, pharmaceutical...more

Is Your Design Professional Construction Contract Too Friendly? (Law Note)

My husband often travels the back roads between Chapel Hill and Fuquay Varina to visit friends. En route (a circuitous route that goes past Sharon Harris Nuclear Power Plant, among other places), he passes by the “Friendly...more

California Supreme Court Upholds Design Professionals' Duty to Future Residential Purchasers

Design professionals, such as architects and engineers, often seek to avoid liability to third party property purchasers for their negligence by arguing that their role in preparing plans was too remote for a duty to be...more

Torts – Standard for Elder Abuse v. Professional Negligence

Gregory Worsham v. O’Connor Hospital, et. al. - Court of Appeal, Sixth District (May 20, 2014) - The Elder Abuse Act (“Act”) does not apply to simple or gross negligence by health care providers. This case...more

New Jersey Court Allows Rescission of Policy and Awards Damages to Insurer

In its recent decision in Colony Ins. Co. v. Kwasnik, Kanowitz & Assocs., P.C., 2014 U.S. Dist. LEXIS 87659 (D.N.J. June 27, 2014), the United States District Court for the District of New Jersey had occasion to consider the...more

To Indemnify or Not to Indemnify? That Is the Question!

We are taught early on that we are each responsible for our own actions. If we make a mistake that results in damages to someone else, we have to pay for those damages. That is the basic concept of indemnification, and the...more

Buzzsaw or SawStop: Are You Prepared to Avoid Antitrust Liability in the Product Safety Arena?

In most respects, trade associations are pro-competitive organizations: they join together competitors to advance worthwhile goals and to learn from one another. Their societal value is why they are recognized as non-profits....more

Questioning The Caremark Standard

The Justice Department’s aggressive enforcement program has had a profound impact on corporate governance. As a consequence, the last there has been a significant change in emphasis in the C-Suite, among general counsel and...more

Delaware Court Clarifies Director and Officer Liability in M&A Transactions

In Chen v. Howard-Anderson, 87 A.3d 648 (Del. Ch. 2014), the Delaware Court of Chancery (Laster, V.C.) held that directors and officers can be held liable for their participation in a change-of-control transaction if their...more

D&O Insurance and IPOs: Seven Issues You Need to Consider

As a company prepares for an IPO, the last thing to sometimes be considered is the potential of future litigation. Although going public can of course be a very good thing for a company, its directors, its initial investors...more

Questions You Should Be Asking About Employment Practices Liability (EPL) Insurance

Every firm has employees, as well as individuals that it has “failed” to hire, or promote, or recognize and reward to the extent that the individuals believes befitting. This is what makes it difficult to completely avoid...more

Expanding Liability for Audit Committee Members

When one considers the corporate bureaucracy designed to ensure good corporate citizenship, the audit committee stands out. No committee of the board has the broad ranging purview of the audit committee, and those powers and...more

School Districts: New York Supreme Court Holds That Public School District May Be Liable For Alleged Bullying Of Private School...

On May 14, 2014, in J.G.S. v. Bellmore-Merrick Central High School District, the New York State Supreme Court in Nassau County held that the parents of a minor student could proceed with their lawsuit against the school...more

Inside The Courts - May 2014 | Volume 6 | Issue 2

In This Issue: - AUDITOR LIABILITY: ..Athale v. Sinotech Energy Ltd., No. 11 Civ. 05831(AJN) (S.D.N.Y. Feb. 21, 2014) - BYLAWS: ..ATP Tour, Inc. v. Deutscher Tennis Bund (German Tennis...more

Chief Compliance Officers in the Crosshairs

Liability is something chief compliance officers have secretly worried about since the role was first created. They often joke, grimly, about becoming the “designated felon.” The joke may have been more prescient than...more

On The Chopping Block: Banks And Financial Institutions

The Department of Justice has had enough. Banks and other financial institutions are not just on the radar screen – they are on the chopping block. One-by-one watch out – banks and other financial institutions are coming...more

Supreme court gives masterclass on solicitor’s duties to “third parties.”

The recent decision of Hall J in Polon v Dorian [2014] NSWSC 571, involves a claim against a solicitor. It reads something like a masterclass on solicitor’s duties to people the solicitor does not consider to be their client,...more

New York Court Holds Underlying Claims Not Interrelated

In its recent decision in Glascoff v. OneBeacon Midwest Ins. Co., 2014 U.S. Dist. LEXIS 64858 (S.D.N.Y. May 8, 2014), the United States District Court for the Southern District of New York had occasion to consider the concept...more

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