Legal Malpractice Cases on the Rise
Legal malpractice claims were on the rise between 2004 and 2007, rising 36 percent. Experts believe that as the economy continues to worsen, the number of legal malpractice claims will rise even further. Attorneys are bracing for the potential tidal wave of malpractice claims likely to hit later this year in to 2010. Legal malpractice claims are predicted to rise to 5 percent in 2009, according to CNA Financial Corp.
Legal malpractice lawsuits connected to failed financial deals, foreclosures, fraud and bankruptcy are expected to be the most common. Surprisingly, research indicates that legal malpractice lawsuits aren't typically filed immediately during an economic downturn. Therefore, we may not see a rise in the number of claims until one to two years after the economy bottoms out.
Source: “Legal Malpractice Cases May Surge as Economy Tanks”, Karen Sloan, The National Law Journal, February 23, 2003, http://www.uslaw.com/library/Legal_Malpractice/Economy_Affect_Legal_Malpractice_Cases.php?item=391591