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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
December 26, 2016

Corporate Boards Need to Think About Cybersecurity

It seems like we can’t go a week without hearing about a cybersecurity breach at a major US corporation. Corporate boards need to be aware that improper oversight of cybersecurity issues could lead to a shareholder derivative lawsuit. One such example from within the last couple of years is Palkon v. Holmes, 2014 WL 5341880, at *1 (D.N.J. Oct. 20, 2014) (No. 2:14-CV-01234 SRC). Palkon involved the global hotel operator Wyndham, which between April 2008 and January 2010 was subject to three cyber-attacks, each resulting in a loss of customer data.

Professional Liability Blog
December 4, 2016

Statute of Limitation and Statute of Repose Expired? Not So Fast! A Medical Malpractice Claim May RELATE Back!

In a matter of first impression, the Illinois Appellate Court in Lawler v. University of Chicago Medical Center had to determine whether Illinois’ medical malpractice statute of repose bars applying the “relation back” doctrine to add a new claim under the Illinois Wrongful Death Act. The relation back doctrine allows an original, timely filed pleading to be amended any time before final judgment, as long as the amendment “relates back” to the original complaint. In Lawler, the appellate court decided to apply the doctrine—but now the Supreme Court of Illinois has decided it’s time for a weigh-in.

Professional Liability Blog
October 31, 2016

In Illinois, Architects Not Required to Guarantee Habitability of Condos

Recently, the Illinois Appellate Court had to decide whether a claim for breach of the implied warranty of habitability can be brought against condominium architects purportedly responsible for alleged design defects—in particular, when the developer is insolvent. The court said no. Board of Managers of Film Exchange Lofts Condominium Association v. Fitzgerald Associates Architects P.C., 2016 IL App (1st) 113508-U (Ill. App. 2016) (“Fitzgerald”).