A significant economic downturn does not just impact individual and corporate financial interests. Professionals in every field have had to adjust to a profound new economic landscape, affecting their clients and their business. Attorneys face a double whammy: As the economy turns downward, there is now a statistically verifiable second wave impact, where lawyers face increased incidence of claims by disgruntled clients. Lawyers are involved in virtually every aspect of society, including litigation and financial transactions, real estate and family law, and commercial enterprises of every sort. Thus, when the economy falters, and clients’ deals go bad, or litigation does not achieve the desired outcome, clients turn to their lawyers, laying blame at their feet for the bad deal, lost cases or bad outcome. The economic fallout from the 2007 mortgage crisis has been no different. Since then, the number of claims and lawsuits against lawyers — and the magnitude of those claims — has increased steadily. In this changing dynamic, lawyers must be extra-vigilant in managing their risks. Rather than being victimized by this trend, attorneys should take precautionary measures to shield themselves from such claims as much as possible, while at the same time considering litigation strategies should a deal turn sour and a client threaten to turn its sights on them.
Many attorneys’ duties are driven by transactions involving money, financial planning or tax advantaged strategies, and it can be tempting for clients to look to their lawyers as scapegoats in a financially tumultuous climate. Similarly, minor legal errors or oversights that would have otherwise gone unnoticed in a healthier economy are often exposed, leaving attorneys vulnerable to claims that can be time consuming, costly and professionally detrimental.
Prevalent Practice Areas Subject to Risk
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
