The AmLaw Daily recently published an article noting an increase in legal malpractice claims between 2010 and 2011 as a result of the state of the economy and the real estate market. Real estate practices were cited as the most likely to be sued due to conflicts of interest and failure to file timely as the main basis’s for claims. The survey polled six insurance companies who provide legal malpractice insurance coverage to approximately seventy-five percent of large and midsized law firms in the United States. One insurance company surveyed noted an 11 to 20 percent increase in claims within the first six months of 2011. One company noted it’s claims rate had increased by 20%, three companies said their claims rates increased by 6 to 10 percent, and the remaining two said their claims rates have remained stable.
It is anticipated, according to the article, that once the real estate market rebounds, the claims of legal malpractice against real estate firms should level back to where they were. During the recession, another publication published an article after consulting with several lawyers, who predicted that law firms could expect to see a rise in legal malpractice suits due to clients being more inclined to seek ways of recouping some of their losses in revenue from other sources, specifically, litigation. To read the article in its entirety, click here.
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