Corporate/Commercial Malpractice Claims Fact Sheet
While the number of LAWPRO claims involving corporate and commercial law has declined in recent years, the average cost for this type of claim remains the highest of all areas of law.
The most common source of corporate/commercial claims are lawyer/client communication issues. Claims occur because there are misunderstandings or when the client’s instructions are not followed. Complex law and complicated transactions seem to drive communication-related errors in this area of practice.
Also, lawyers practising in this area need to be especially vigilant of conflicts of interest. As compared to most of areas of practice, conflicts of interest-related claims are four times more frequent in the corporate/commercial area. Conflicts claims frequently arise when work is done for closely held corporations and it becomes unclear who the lawyer’s client is (e.g. the corporation or the individual shareholders or officers.)
Costly claims also arise when tax issues are not recognized or when a lawyer undertakes tax work with insufficient expertise and/or advice from a tax expert.
Download the full Fact Sheet (PDF) for detailed information.