ChatGPT is a natural language-based processing tool via a chatbot that allows users to obtain answers to questions and to gain assistance drafting written communications. Additional benefits of ChatGPT include automating repetitive tasks and conducting comprehensive data searches within seconds. For attorneys, a commonly stated concern is that they are about to be replaced, in whole or in part, by ChatGPT or other similar Artificial Intelligence (“A.I.) programs, such as Bard, Bing, and others that are not yet widely available. However, there are a host of more immediate practical concerns that lawyers need to weigh when contemplating the use of ChatGPT in their law practice. At a minimum, law firms should carefully balance the risks of employing ChatGPT against any expected benefits and obtain informed client consent before using such artificial intelligence on a client matter. Read more here. ...

A Bad Economy Increases Risks for Lawyers                 Experts may disagree as to whether we are in a recession, but there is no question that our economy has been in a weakened state for a lengthy time period, which may impact professional liability claims for lawyers. For example, virtually all areas of practice for lawyers showed an increase in claims as a result of the 2008-09 recession. As a result, lawyers should be keenly aware of liability exposure as professional liability claims tend to increase during bad economies. Financial concerns may tempt lawyers to engage in precarious behaviors – curtailing risk control procedures, accepting riskier clients, or taking cases in practice areas outside of the customary course of business. Similarly, clients who may more easily forgive an error or perceived bad outcome to a matter may now consider their law firms as a deep pocket that can ease their economic woes. In this challenging economic environment, law firms must remember the fiduciary duties owed to clients, the ethical duties imposed upon them by the Rules of Professional Conduct, and best practices for avoiding claims. Monitoring and responding appropriately to the following issues will help to minimize a law firm’s exposure ...

May 1-5, 2023 marked the fourth annual Well-Being Week in Law (“WWIL”). Occurring in conjunction with Mental Health Awareness Month, WWIL is an industry-wide initiative supported through the Institute for Well-Being in Law to address general health, mental health, and problematic substance use in the legal profession, often frequent but unspoken factors in professional liability claims. WWIL provides concrete, actionable ideas and resources to encourage innovation and improved well-being for all involved in the legal profession. In recognition of the importance of these issues, our live webinar includes a section devoted entirely to addressing lawyer well-being and offers helpful resources for our insureds. Our previously published article also discusses data and resources related to well-being and mental health, and can be found here ...

It is an everyday occurrence. Attorneys refer cases to one another and then collect the fees for those same referrals. Client referrals and the income generated from fee splitting agreements are not only an important revenue stream, but also serve to assist those clients in need of quality legal representation when the attorneys are unable to take on all prospects themselves as a result of availability, retirement, or differing practice areas. However, these fees are not simply easy and risk-free money; there are strict requirements that the referring attorney must satisfy in order to collect the referral fee, and proactive risk management pertaining to fee splitting agreements is critical. The failure to meet these requirements may result in an ethical violation, may cause the loss of the fee, and may result in vicarious liability being placed upon the referring attorney for the misdeeds or negligence of the working attorney ultimately involving the referring attorney in a legal malpractice matter or disciplinary proceeding. Why Refer? Referral fees and fee sharing agreements play an important role. They incentivize lawyers to seek out or partner with other lawyers to ensure that clients obtain competent representation. They make good business sense in that an ...

Lawyers serving on a board of directors may derive many benefits from such service, including honing one’s business skills, developing professional relationships, enjoying the prestige and recognition of board membership, and strengthening the lawyer’s ties with an existing or potential law firm client. Lawyers contemplating board service must weigh the potential benefits against the risks inherent in such appointments prior to acceptance and throughout the tenure of any board service. Ambiguity concerning the lawyer-director’s precise role, as well as inattention to conflicts of interest and other liability issues may lead to negative consequences for the company, the lawyer’s law firm, and the lawyer herself. There is no rule or law that prohibits lawyers from simultaneously serving as legal counsel and board members for an organization. Comment 35 to ABA Model Rule of Professional Conduct [“ABA MRPC”] Rule 1.7 cautions, however, that if “there is a material risk that the dual role will compromise the lawyer’s independence of professional judgment, the lawyer should not serve as a director or should cease to act as the corporation’s lawyer when conflicts of interest arise.” Moreover, if the lawyer contemplating board service determines that conflicts probably would arise frequently and be significant, the lawyer ...