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Professional liability Update

Recent New England Developments of Interest

Corporation and Its Lawyers Assessed Attorney’s Fees for Asserting Frivolous Claims:  U.S. District Court for the District of Colorado

A corporation brought a patent infringement suit that it should have known lacked merit.  Even though the corporation survived a summary judgment motion and won a jury verdict (which was later overturned), the district court assessed fees.  Significant factors for the court were that the corporation’s lawyers repeatedly misled the jury, exploited the complexity of the issues, and otherwise engaged in tactics that amounted to “an abuse of advocacy.”  Medtronic Navigation v. Brainlab, 98-cv-01072-RPM (February 12, 2008).

Lawyers Cannot Participate in Networking Clubs That Mandate Cross-Referrals:  Massachusetts Committee on Professional Ethics

Massachusetts Lawyers Weekly reported that the Bar Committee issued an opinion proscribing lawyer participation in any networking club that requires its members to refer work to each other.  Membership in such a club violates Massachusetts Professional Conduct Rule 7.3, which, except in limited instances, forbids lawyers from giving anything of value in exchange for a referral.  Networking clubs that require cross-referrals involve just that because the lawyer members must gives referrals in exchange for referrals.  Several lawyers criticized the opinion for being vague and broad, saying it will discourage lawyers from participating in legitimate networking opportunities.  Massachusetts Lawyers Weekly (March 21, 2008).

Lawyer That Prepared Will Naming Himself as Beneficiary Suspended For Thirty Days:  Maine Board of Overseers

A lawyer began a personal relationship with an elderly client, assisting in her routine care.  At her request, he prepared a will that included himself as a beneficiary.  After she died, he eventually refunded the bequest.  While the lawyer’s conduct violated the per se rule against drafting an instrument that directly benefits the lawyer, the Board found that the lawyer “went above and beyond the call of duty in ministering to a troubled and infirm elderly woman.”  Taking the lawyer’s “noble” and “selfless” motivations into account, the Board only suspended him for thirty days.  Board of Overseers v. Clark, BAR-07-02 (January 24, 2008).

When Lawyer Becomes a Potential Witness, His Associate Might Still Be Able to Represent Client:  Maine Bar Counsel

The Bar Counsel issued an informal opinion in response to a lawyer’s question about whether he could represent a client before an administrative agency after a complaint was brought against both the lawyer and the client.  Maine Professional Conduct Rule 3.4 dictates that, when a lawyer is a likely witness on the merits, he must withdraw from representation unless his distinct value to that particular case would make his withdrawal an undue hardship on the client.  A member of his firm, however, can represent the client as long as that lawyer does not have a conflict of interest, and the original lawyer is sealed from participation.

For more information on thESE topicS, and prior issues of Professional Liability Update, visit the ‘Articles’ topic on our website at:  http://www.nkms.com

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