Not all claims are avoidable, and a disgruntled client may sue even absent attorney error. However, there are proactive steps a law firm’s general counsel should consider to reduce the risks of a claim against a firm. Although taking proactive…
General Counsel Tip: Protecting Confidential Communications
Many attorneys work at law firms without a full-time in-house counsel. Different attorneys are called upon to serve in a general counsel capacity when issues arise. Over the next few months, we will discuss laws and offer tips to general…
Risk Management: Conflicts In The 21st Century
In California Self-Insurers’ Security Fund v. Superior Court, (2018) 19 Cal.App.5th 1065, the Court of Appeal held that disqualification of an entire firm was not mandatory where an attorney from one firm “switched sides” and joined another firm during litigation,…
The Limits of Advance Waivers
Law firms have aggressively pursued advance waivers to represent concurrent clients whose interests conflict in unrelated matters. For example, Law Firm represents Client A in an action against Client B. Normally, this representation would preclude Law Firm from representing Client…
Risk Management: Duties Of Partners In A Dissolving Firm
Nearly ten years after international law firm Heller Ehrman closed its doors, the California Supreme Court addressed whether the dissolved firm had any interest in the hourly-fee legal matters former partners continued to handle. In Heller Ehrman LLP v. Davis…
Risk Management Tip: Understanding Duties to Third Parties, Part 2
An attorney’s primary duty to a client is tempered by the overriding duty in all settings to be truthful. In the transactional setting there is no protection for attorneys from claims by non-clients when an attorney engages in affirmatively deceitful…
Risk Management Tip: Understanding Duties to Third Parties, Part 1
The primary duty to a non-client is to be truthful. This month we examine this duty in litigation. Generally, attorneys owe no duty to a non-client. In Goodman v. Kennedy (1976) 18 Cal.3d 335, purchasers alleged they were damaged because…
Risk Management Tip: Ethical Walls Can Protect Against Disqualifying Conflicts
Conflicts of interest might disqualify an entire law firm from representing clients who are adverse to each other in unrelated matters. Proposed amendments to the California Rules of Professional Conduct would allow the use of an ethical wall in certain…
Legal Malpractice Corner: Risk Management Tip – SEC Reporting Rules Preempts California’s Attorney-Client Privilege
Over the past three months this column has reviewed attorney Sanford Walder’s trial victory over his former employer, Bio-Rad. Among other attorney-client privilege issues, the district court examined whether California law is preempted by regulations promulgated under the Sarbanes-Oxley Act.…