Tips for Law Firms on Limiting Exposure to Malpractice Risk of Lateral Hires
While lateral hiring has become an important growth strategy for law firms in recent years, it is also important for firms to protect themselves against exposure to potential malpractice claims that can travel with laterals. In a DRI For the Defense article, Hinshaw's Cassidy Chivers and Noah Fiedler consider steps firms can take to limit and manage this potential liability.
The authors note that conducting thorough due diligence should be the first step in process, and include vetting the candidate, the candidate's clients and the matters the candidate expects to transfer to the firm. Once due diligence is completed and a hire date scheduled, firms should (1) communicate with the candidate's clients in a way that complies with the ethics rules and decisional law of the state of practice; and (2) evaluate how to take in the new clients and matters.
Read the full article (PDF)
"Everyone Has Baggage: Limiting the Liability that Travels with Lateral Hires," was published by DRI's For the Defense in August 2019.