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Professional Liability Blog

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.

Professional Liability Blog
October 19, 2020

Beware of Reach of Engineering Evaluations

At the request of the developer of 21 Christian Condominium Association (“Developer”), Pioneer did a property condition assessment (“PCA”) of a 12-story residential structure.  The developer then provided the PCA to all prospective condominium purchasers.  The 21 Christian Condominium Association (“Association”), on behalf of its members, later sued Pioneer for negligent misrepresentation in the preparation of the PCA.  After the circuit court granted summary judgment for Pioneer, the appellate court reversed and held Association had adequately pled the elements of negligent misrepresentation,

Professional Liability Blog
September 8, 2020

Public Policy Prohibits Involuntary Assignment of Legal Malpractice Claim Among Litigation Adversaries

This article discusses the Supreme Court of Iowa’s opinion in Gray v. Oliver, where the Supreme Court decided, as a matter of first impression, that a judgment creditor could not prosecute a legal malpractice claim it obtained as an involuntary assignment from the judgment debtor. Such an assignment violates public policy and threatens the integrity of the attorney-client relationship.

Professional Liability Blog
August 4, 2020

Whose Side Are You On? Washington Supreme Court Finds Firm That Previously Defended Insurer Can Represent Policyholder in Bad Faith Suit Against Insurer

The Washington Supreme Court held a law firm who had previously represented an insurance company in defending bad faith suits was not disqualified from representing plaintiff policyholders in a bad faith suit involving a fire loss against the same insurer. The Court held the representations were not “substantially related” because they were not factually related and the insurer did not show a “substantial risk” the law firm obtained “confidential factual information” which would “materially advance” the policyholders’ case.