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Lawyers' Professional Liability Update

August 20, 2008
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Discipline 

Attorneys Disbarred for Extraordinary Sting Operation
In re Curry, 450 Mass. 503 (2008); In re Crossen, 450 Mass. 533 (2008)

In summary, attorneys conducted fake job interviews with a former judicial clerk and then threatened the clerk. Their elaborate and deceitful scheme violated numerous ethical rules and led to their disbarment.

Duty

Lawyer Had Duty to Blow Whistle on Other Counsel
Estate of Spencer v. Gavin, ___ N.J. Super. ___, ___ A.2d ___, 2008 WL 1848101, 1848128 (2008), per curiam

Attorney Gavin undertook, as executor, to represent estates for which he had prepared the testamentary documents. Pursuant to those documents, Gavin asked attorney Averna to form a nonprofit charitable corporation intended to manage and disburse a portion of the assets. He did and billed Gavin as executor $2,500. Gavin embezzled money belonging to the estate. He died shortly thereafter.

Evidence

Is Evidence of Settlement Admissible to Prove Damages?
McDevitt v. Guenther, 522 F. Supp. 2d 1272 (D. Haw.2007)

The question of whether a plaintiff may base a damage claim on the difference between what the client paid or received in settlement and what the client contends should have been paid or received is a recurring one. 

Insurance

Insurer Sued for Breaching Duty to Defend May Seek Contribution From Law Firms It Retained To Defend Insured
Walter & Shuffain, RC. v. CPA Mutual Ins. Co., 2008 WL 885994 (D. Mass. March 28, 2008) 

A federal district court in Massachusetts held that an insurer which was sued by its insured, an accounting firm, for negligence in performing its duty to defend a malpractice suit was entitled to seek contribution from the law firms which the insurer had retained to defend in the underlying case. The court further held that the insurer was not entitled to seek indemnity.

This newsletter has been prepared by Hinshaw & Culbertson LLP to provide information on recent legal developments of interest to our readers. It is not intended to provide legal advice for a specific situation or to create an attorney-client relationship.


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