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Legal Malpractice Claims Tied to Real Estate Deals Shows Quickest Climb
The National Law Journal
October 01, 2008
Legal malpractice claims tied to real estate transactions rose faster than other top reasons for lawsuits against lawyers during the past three years, according to an American Bar Association study on lawsuits against lawyers.
Malpractice claims against lawyers related to real estate transactions climbed four percentage points to 20 percent of all such malpractice cases between 2003 and 2007, from 16 percent between 2000 and 2003, the study said.
Alleged errors in real estate transactions were the second-biggest category of the malpractice cases for the most recent period, behind only personal injury plaintiffs' claims, according to the study released in September. The claims linked to personal injury increased to 22 percent from 20 percent.
"As real estate values have fallen across the country, more individuals and businesses are suing their lawyers for bad results," the association said in a press release, citing lawyers who spoke at a panel on the topic in September.
The alleged legal missteps tied to real estate transactions grew out of conflicts of interest, closing and contract-drafting errors, and problems linked to zoning and escrow issues, the association said in the release.
The study results are based on a survey of insurance companies that provide legal malpractice coverage in the United States and Canada. This year's study had the largest response since the study began in 1985, with 18 U.S. and six Canadian companies responding.
