We explore and analyze current issues and relevant topics to help accountants, attorneys, architects and engineers, insurance agents and real estate brokers avoid a professional liability case.
In Ill. Union Ins. Co. v. US Bus Charter & Limo Inc., 291 F. Supp. 3d 286 (E.D. N.Y. 2018), the United States District Court for the Eastern District of New York addressed the scope of coverage for alleged violation of the Telephone Consumer Protection Act (TPCA). One of the main issues presented was whether a TCPA violation was within the scope of the insurance policy’s coverage for performance of professional services and travel agency operations.
In Missouri, certain communications between a Certified Public Accountant (CPA) and the client are considered privileged. Section 326.322 of the Missouri Revised Statutes prohibits CPAs from voluntarily disclosing information communicated to the CPA by the client relating to and in connection with services rendered. The statute also prohibits a CPA from producing documents or providing deposition testimony concerning a client unless the client provides approval.
Illinois’ Statute of Limitations for a negligent procurement claim runs from date insured received the policy, not when a claim is denied.
In American Family Mutual Insurance Company v. Krop, 2018 IL 122556, – N.E.3d – (2018), the Illinois Supreme Court addressed whether a claim brought by Walter and Lisa Krop, the insureds, against their insurance agent for failing to procure the level of insurance coverage the insureds requested and would have covered a third-party claim, was time barred. Central to the dispute was when the Krops’ claim against the agent accrued.
It is not uncommon for professionals who are not a party to a lawsuit to be subpoenaed to provide deposition testimony in the case. As long as the testimony remains factual and does not go into the area of expert testimony, the professional is only entitled to the statutory witness fee for the time of the deposition. The deciding factor is whether the professional is being called as an expert or as a fact witness. If called to provide factual information the professional is aware of, then the only compensation that is allowed is the statutory witness fee (which is currently $25 a day plus mileage, see RSMo. 491.280).