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Legal Malpractice
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What is professional liability?
When you hire a professional, such as an attorney, accountant, or engineer, you expect competence, integrity, and accountability. These individuals are trusted with some of the most important aspects of your life: your legal rights, your financial health, and the homes and communities you live in. Unfortunately, when professionals fail to meet the standard of care required in their field, the consequences can be devastating.
Professional liability arises when a person in a specialized field, such as law, accounting, or engineering, fails to perform their duties to the accepted standard of care within their profession. If this breach causes harm to a client or third party, the professional may be held liable.
These cases often fall under “malpractice” or “negligence” claims. They are complex and require a thorough understanding of both the underlying profession and the legal principles involved. At Morgan & Morgan, we represent individuals and businesses who have suffered due to professional negligence. With over 35 years of experience, we’ve recovered billions of dollars in compensation.
What are common elements of a professional liability claim?
Regardless of whether it involves an attorney, accountant, engineer, or another licensed professional, the common elements of a professional liability claim generally include the following four components:
1. Duty of Care
The professional must have had a recognized duty or obligation to act in accordance with the standards of their profession. This usually arises from a formal relationship, such as a signed contract or engagement letter, or when a professional takes on an engagement for a client.
For example, when an attorney agrees to represent a client in a lawsuit, they owe that client a duty to provide competent legal representation.
2. Breach of Duty
The professional failed to meet the standard of care expected in their field. This means they acted negligently, made serious errors, or omitted critical actions that a reasonably competent professional would have performed differently.
For instance, an accountant files inaccurate or late tax returns that result in penalties for the client.
3. Causation
There must be a direct link between the professional’s breach of duty and the harm suffered by the client. The plaintiff must show that the damage would not have occurred “but for” the professional’s negligence.
For example, if an accountant fails to provide correct tax advice, and the IRS penalizes the client, it could be evidence of causation.
4. Damages
The client must have suffered actual harm (typically financial) as a result of the professional’s misconduct or negligence.
An example could be if a client loses a multi-million-dollar lawsuit because their lawyer failed to file necessary documents on time.
If all four of these components are at play, you may have a strong claim. Consulting with an experienced attorney at Morgan & Morgan can help you better understand your eligibility to pursue compensation.
What is legal malpractice?
Legal malpractice occurs when an attorney fails to perform their legal duties competently, resulting in harm to their client. These cases can involve negligence, breach of fiduciary duty, or even intentional misconduct.
Professional negligence in legal malpractice can arise in a variety of legal settings, whether during litigation, contract negotiation, estate planning, or other areas where an attorney-client relationship exists.
It’s important to note that not every bad legal outcome is malpractice. Attorneys can lose cases while still acting competently and ethically. The key difference is whether they acted below the professional standard of care and whether that failure caused actual harm.
What are the common types of legal malpractice?
There are several common types of legal malpractice, each stemming from a lawyer’s failure to uphold the standard of care expected in the profession. Below are the most frequently cited forms:
Missed Deadlines / Statute of Limitations Violations
Failing to file a lawsuit or motion, or failing to disclose an expert witness, within the required timeframe is one of the most common and serious forms of malpractice. If a lawyer lets a statute of limitations expire or misses a critical deadline, the client may permanently lose their right to sue, even if they had a strong case.
Failure to Know or Properly Apply the Law
An attorney is expected to be familiar with the laws that apply to their area of practice. If a lawyer gives advice contrary to established law, they can make critical errors that harm their client’s case or financial interests.
Example: Misadvising a client about tax implications in a divorce settlement or botching the structure of a contract.
Inadequate Investigation or Discovery
A lawyer must conduct a reasonable investigation or gather necessary evidence through the discovery process. Failing to do so, such as not interviewing key witnesses or reviewing essential documents, can weaken the case and be grounds for malpractice.
Conflict of Interest
Attorneys are ethically obligated to avoid representing clients when there’s a conflict of interest. For example, lawyers representing opposing parties in the same matter or advising clients in cases where the lawyer has a personal financial stake could both be conflicts of interest. Failing to disclose and resolve conflicts can constitute both ethical misconduct and malpractice.
Poor Communication / Failure to Obtain Consent
Lawyers must keep clients informed about key developments and obtain their informed consent before taking major actions (like settling a case). A breakdown in communication or making unauthorized decisions on a client’s behalf can lead to serious claims.
Fraud or Misrepresentation
When an attorney knowingly makes false statements, misleads a client, or conceals important information, that can rise to the level of intentional misconduct and may even lead to criminal charges, in addition to a malpractice lawsuit.
Misuse of Client Funds
This includes stealing from client escrow accounts, misappropriating settlement proceeds, or using retainer money improperly. It’s one of the gravest violations an attorney can commit and often leads to disbarment.
Failure to Follow Client Instructions
A client has the right to make key decisions in their case, like whether to settle or go to trial. If an attorney ignores those instructions, it can amount to malpractice, especially if it leads to an outcome the client did not want or agree to.
Clerical or Administrative Errors
Sometimes, even small oversights, like forgetting to serve notice to the opposing party or sending documents to the wrong address, can have large consequences. If those mistakes derail a case, the attorney may be liable.
Negligent Settlement Advice or Actions
Failing to explain the terms of a settlement properly or finalizing a settlement without client approval can form the basis of a malpractice claim.
How do I prove legal malpractice?
Proving legal malpractice isn’t always easy. It requires more than showing that your lawyer made a mistake or that your case didn’t go your way. To successfully win a legal malpractice claim, you need to establish four key elements, often with the support of expert witnesses and substantial documentation.
Here’s a breakdown of what’s required:
1. Attorney-Client Relationship
You must prove that you had a formal relationship with the attorney, which gave rise to a legal duty of care. This is usually the simplest part to prove.
Evidence may include:
- A signed retainer agreement
- Email correspondence confirming representation
- Invoices or bills for legal services
- Court filings listing the attorney as your counsel
Without a clear attorney-client relationship, a malpractice claim typically cannot proceed.
2. Breach of Duty (Negligence)
Next, you must show that the lawyer breached the standard of care—in other words, that they acted negligently or incompetently compared to how a reasonably skilled attorney would have acted in the same situation.
Examples of breach:
- Missing filing deadlines
- Giving incorrect legal advice
- Failing to communicate important information
- Failing to appreciate or disclose conflicts of interest
- Failing to perform adequate research
Expert testimony is often required to explain how the attorney’s conduct fell below the professional standard.
3. Causation
This is one of the hardest elements to prove. You have to demonstrate that the lawyer’s error or misconduct directly caused you harm.
In legal terms, this often involves proving what’s known as the “case within a case.”
You must show that but for the attorney’s mistake, you would have won the case, obtained a better settlement, or avoided damages. If you can’t show that the outcome would have been different with competent representation, the claim may fail, even if the lawyer was negligent.
4. Damages
Finally, you need to prove that you suffered actual, measurable harm (usually financial harm).
Examples of damages:
- Having your case dismissed
- Lost settlement money or court award
- Legal fees paid for failed representation
- Fines or penalties you would have avoided
- Costs associated with fixing the mistake (hiring a new lawyer)
Additional Tips for Strengthening a Legal Malpractice Case:
- Gather documentation: Save all correspondence, legal documents, and records of your case.
- Act quickly: Legal malpractice claims are subject to strict statutes of limitations that vary by state.
- Hire a legal malpractice attorney: These are specialized cases that often require experienced professionals to evaluate the merits and gather expert opinions.
- Get an expert witness: In most states, you’ll need another attorney to testify that the original lawyer failed to meet the professional standard. The attorney you hire can help you find these experts.
What is accounting malpractice?
Accounting malpractice is a form of professional negligence that occurs when an accountant or accounting firm fails to adhere to established professional standards, resulting in harm to a client or third party.
Just like lawyers and doctors, accountants have a duty of care to act with competence, accuracy, and integrity. When they breach that duty, whether through carelessness, misrepresentation, or unethical behavior, they may be held legally liable.
What are common types of accounting malpractice?
Some of the most common types of accounting malpractice all involve a breach of professional duty that can lead to serious financial consequences. They can include:
Financial Statement Misrepresentation
Accountants and auditors are expected to prepare financial documents that accurately reflect a client’s financial position. When they:
- Overstate income
- Underreport liabilities
- Fail to disclose relevant information
…it can mislead stakeholders and lead to lawsuits, regulatory penalties, or bad business decisions.
An example of misrepresentation could be an accountant who allows a company to inflate its revenue on its financial statements to make it appear more profitable.
Tax Preparation Errors
One of the most common areas for malpractice claims. Mistakes can include:
- Missing filing deadlines
- Filing the wrong tax forms
- Incorrectly calculating deductions or credits
- Misreporting income or expenses
These errors can trigger audits, fines, or even criminal charges for the client.
As an example, picture a business that is fined heavily by the IRS because their accountant failed to include a new tax form required under updated tax laws.
Failure to Detect or Report Fraud
While accountants are usually not responsible for actively investigating fraud, sometimes they must follow professional auditing standards that require alertness to red flags. Failure to detect or report clear signs of fraud can result in serious harm.
For instance, an auditor overlooks forged invoices during a routine audit, allowing a company executive to embezzle millions.
Negligent Auditing
Auditors must follow Generally Accepted Auditing Standards (GAAS). When they:
- Don’t verify financial information
- Skip necessary audit procedures
- Fail to maintain independence
…they may miss major issues that lead to bad investments, financial collapse, or shareholder lawsuits.
This occurs in instances such as an auditor failing to uncover that a company’s revenue is based on fictitious sales, leading to investors losing millions.
Conflict of Interest
Accountants are ethically required to act in the best interest of their client and remain objective. Malpractice can occur when they:
- Represent clients with opposing interests
- Give self-serving advice
- Fail to disclose a financial stake in a client’s business
For instance, an accountant could steer a client toward purchasing a service from a company in which they have a personal investment without disclosing it.
Improper Use or Disclosure of Confidential Information
Accountants must protect sensitive financial data. If they:
- Share client information without consent
- Fail to secure digital or physical records
- Use private financial info for personal gain
…it can result in privacy violations, legal consequences, and reputational harm.
Violation of Professional Standards
Depending on the work they are performing, Accountants and Auditors must adhere to various professional standards, such as:
- GAAP (Generally Accepted Accounting Principles)
- GAAS (Generally Accepted Auditing Standards)
- Statutory Accounting Standards
- AICPA Code of Professional Conduct
Failure to follow these can result in regulatory discipline or malpractice liability.
How do I prove accounting malpractice?
Proving accounting malpractice requires demonstrating that an accountant or accounting firm failed to meet professional standards, and that their failure directly caused financial harm. Like other types of professional liability cases, it hinges on proving negligence, causation, and damages, but the details often involve complex financial evidence and expert testimony.
Here’s a breakdown of how to build a strong accounting malpractice claim:
1. Establish the Duty of Care
You must first show that the accountant owed you a duty of care. This usually stems from a professional or contractual relationship.
If you hired the accountant to prepare your taxes, audit your company, or manage financial statements, that duty is usually clear.
In some cases, third parties (like investors or creditors) can sue if they were foreseeably reliant on the accountant’s work, depending on state law.
2. Prove a Breach of That Duty
The core of any malpractice case is proving the accountant made a significant mistake or violated professional standards, such as:
- Failing to follow GAAP (Generally Accepted Accounting Principles)
- Ignoring GAAS (Generally Accepted Auditing Standards)
- Making errors or omissions in tax filings
- Misrepresenting financial information
- Missing critical deadlines
- Failing to detect obvious signs of fraud
This typically requires an expert witness, often another CPA, who can explain how a competent professional would have acted differently in the same situation.
3. Demonstrate Causation
You must then connect the accountant’s negligence to your financial loss. This step can be tricky. It’s not enough to prove that a mistake was made; you need to show that the mistake directly caused harm.
Examples could include:
- You were fined by the IRS due to a missed tax filing.
- Investors sued your company after a negligent audit.
- You relied on inaccurate financial statements when making a business decision that resulted in a loss.
4. Prove Damages
Finally, you’ll need to show measurable damages. These can include:
- Financial penalties or fines
- Overpaid taxes
- Lost business opportunities
- Legal and accounting fees associated with correcting the mistake
Financial documentation and expert financial analysis are often used to calculate the full scope of losses.
Evidence You May Need
- Engagement letters or contracts
- Financial statements and tax records
- Communications with the accountant (emails, reports, notes)
- Audit trails or documentation
- IRS letters or court filings
Do I Need an Expert Witness?
Yes. In many accounting malpractice claims, an expert witness is often essential. They can interpret complex financial documents, establish what the standard of care is, and explain how the accountant deviated from that standard.
What is engineering malpractice?
Engineering malpractice occurs when an engineer fails to perform their duties according to the accepted standards of their profession, resulting in harm, usually in the form of physical damage to property, injury, or financial loss.
Like other types of professional liability, it typically involves negligence, meaning the engineer did not exercise reasonable care that another competent engineer would have under similar circumstances.
Malpractice can happen in nearly every engineering discipline, including:
- Civil engineering: Building and bridge design, roadway construction, site planning
- Geotechnical engineering: Soil analysis, slope stability, foundation design
- Environmental engineering: Wastewater systems, pollution control, wetland issues, drainage
- Structural engineering: Load calculations, material selection, stress testing
- Mechanical engineering: HVAC systems, mechanical parts, engines
- Electrical engineering: Circuit design, grounding, power systems
What are the common types of engineering malpractice?
Engineering malpractice can occur across a range of disciplines, but most cases share a common thread: the failure to meet professional standards in design, planning, execution, or supervision, resulting in economic damage or financial loss.
Design Errors
Engineers are often responsible for designing buildings, site plans, roadways, and utilities. A design flaw can create safety risks or render a structure unfit for its intended use.
Examples can include:
- Designing site plans that cannot be permitted or built
- Designing community drainage systems that are inadequate
- Providing incorrect advice about the feasibility of a project
- Failing to perform proper due diligence before a project commences
These can result in the following consequences:
- Property damage to roadways, sidewalks, and buildings
- Increased construction costs
- Lost profits or other financial losses from a development that cannot be built as anticipated
Failure to Adhere to Code or Industry Standards
Engineers usually must follow local building codes, zoning regulations, and professional standards like ASCE (American Society of Civil Engineers) or IEEE (Institute of Electrical and Electronics Engineers). Ignoring or misapplying these guidelines is grounds for a malpractice claim.
Examples can include:
- Overlooking environmental rules and regulations
- Failing to account for density, setback, or other local requirements
- Using outdated codes for wind load in a coastal building
Negligent Supervision or Inspection
Engineers who act as project managers or site inspectors must ensure the design is correctly implemented. Failing to catch errors or hazards during construction can be a breach of duty.
Examples can include:
- Signing off on incomplete or substandard work
Not spotting incorrect rebar placement during a site visit - Overlooking improper fill or grading at a construction site
Incorrect Material Selection
Choosing the wrong materials for a project, either due to cost-cutting, lack of knowledge, or carelessness, can lead to premature failure or safety hazards.
Examples can include:
- Specifying inadequate roofing systems
- Selecting improper piping that corrodes quickly in a wastewater system
- Selecting materials incompatible with local weather or seismic activity
Inadequate Site Analysis or Soil Testing
In geotechnical or civil engineering, failing to understand site conditions can lead to catastrophic results.
Examples can include:
- Not testing soil for stability before foundation design
- Misreading water tables or floodplain risks
- Failing to install proper drainage
Environmental Negligence
In environmental engineering, poor planning or negligence can lead to pollution or violations of environmental laws.
Examples can include:
- Designing a drainage system that floods neighboring land
- Overlooking the impact of local wetlands
- Failing to appreciate the impact of environmental regulations on a project's design
Breach of Contract or Scope
Sometimes, malpractice claims stem from an engineer failing to deliver what was promised in a contract or working outside the agreed scope, resulting in confusion, added costs, or legal liability.
How do I prove engineering malpractice?
Proving engineering malpractice involves demonstrating that an engineer’s actions (or inactions) fell below the professional standard of care and caused tangible harm.
Like other types of professional liability cases, this requires meeting a specific legal test. If you’re considering filing a claim or simply want to understand what’s involved, here are the key components of proving engineering malpractice:
1. Duty of Care
You must show that the engineer owed you a legal duty. This typically arises from a contractual relationship, such as hiring an engineer to design a building or system. Even if there is no formal contract, the engineer may still owe a duty if they accepted a project and performed work.
2. Breach of Duty
You’ll need to demonstrate that the engineer breached that duty by failing to meet the standard of care expected of a reasonably competent professional in the same field under similar circumstances.
This often requires expert testimony from another engineer who can review the work and explain how it deviated from accepted engineering practices.
3. Causation
There must be a direct connection between the engineer’s negligence and the damage you suffered. It’s not enough that a mistake occurred—the breach must have been the proximate cause of the harm.
Courts often break this into two parts:
- Cause in fact: The harm would not have happened but for the engineer’s actions
- Proximate cause: The harm was a foreseeable consequence of the engineer’s negligence
4. Damages
Finally, you must prove you suffered actual damages, such as financial loss, property damage, injury, or even wrongful death, as a result of the malpractice. Courts typically do not entertain claims based on potential harm unless a tangible loss occurred.
What damages can I recover in professional liability cases?
Victims of professional malpractice may be entitled to a range of damages, including:
- Economic Losses: This includes lost profits, penalties, legal fees, or the cost of correcting errors.
- Punitive Damages: In cases of gross negligence or intentional misconduct, courts may award punitive damages to punish the wrongdoer.
At Morgan & Morgan, we fight to ensure our clients receive every dollar they are owed. Our team works with financial experts, industry consultants, and forensic investigators to build a rock-solid case on your behalf.
How long do I have to file a malpractice claim?
The statute of limitations is the length of time, usually starting from the discovery of the alleged error, or when you reasonably should have discovered the error, that you have to pursue legal action. Professional malpractice has a shortened statute of limitations.
If you believe you have been damaged by the error of an engineer or design professional, it is vital that you do not delay in contacting an attorney. If you wait too long, you may be time-barred from recovering compensation for the harm you have suffered as a result of professional malpractice.
Why should I hire Morgan & Morgan?
At Morgan & Morgan, our team of experienced attorneys has successfully represented countless clients in similar situations, securing millions in compensation. As the largest plaintiffs’ law firm in the country with over 1,000 lawyers nationwide, we have the resources, knowledge, and dedication to fight for your rights.
We work on a contingency fee basis, meaning you won’t have to pay unless we win your case. Morgan & Morgan believes justice should be accessible to all, so our motto is the Fee Is Free™—you only pay if we win.
Don’t bear the burden of your injuries on your own because of someone else’s negligence. Contact Morgan & Morgan today for a free case evaluation to learn more about your legal options.
How much does it cost to hire Morgan & Morgan?
Morgan & Morgan’s lawyers work on a contingency fee basis, meaning that there are no upfront fees or expenses until your case comes to a successful conclusion. That’s right—the Fee Is Free™, and you only pay if we win.
Our fee is a percentage of the settlement or verdict amount, ensuring we are motivated to achieve the best possible outcome for you.
Do I have to pay for a consultation with a lawyer?
No. Consultations at Morgan & Morgan are completely free. We believe everyone deserves access to legal advice, regardless of their financial situation.
Hiring one of our lawyers is easy, and you can get started in minutes with a free case evaluation on our site or by phone.
Who will be on my case team?
When you hire Morgan & Morgan, you don’t just hire a lawyer, you hire the largest personal injury law firm in the country with an army of over 1,000 lawyers and offices in all 50 states and Washington, D.C.
Your case will be handled by a dedicated team of professionals, including personal injury lawyers, paralegals, and support staff. You will be assigned a care team that includes a primary attorney who will oversee your case and ensure you receive personalized attention throughout the process.
When do I meet with my lawyer?
We love talking to our clients. You will primarily communicate with your legal team via telephone and email, and if you would like to speak directly with your attorney via telephone, we will make that happen by scheduling a call.