Costs are being driven up by increasingly complex theories from law firms’ former clients about how poor legal advice has led to business losses, according to a recent survey.
Insurance experts have held up complex aiding-and-abetting allegations against lawyers as one of the main drivers of skyrocketing defense costs. Those cases are often complex and lack a clear path that would allow them to be ended at the “motion-to-dismiss” stage.
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Highly complex legal malpractice suits are still relatively rare – but they’re also the ones that can push costs beyond what insurers cover and leave law firms stuck with the balance.
An Ames & Gogh survey found that nine professional liability insurers said they’d seen a steady increase in the volume of legal malpractice suits in 2015 and 2016. All nine also reported that their costs per case were on the rise.
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