P R O F E S S I O N A L L I A B I L I T YLegal MalpracticeBy Susan E. WassellClaims Arisingfrom Multiple-Defendant LitigationJoint representation canhave notable advantages,but poor representationcan have devastatingramifications—professionally, financially,and emotionally.Black’s Law Dictionary (1983) defines legal malpracticeas the “failure of an attorney to use such skill, prudence,and diligence as lawyers of ordinary skill and capacitycommonly possess and exercise in performanceof tasks which they undertake, and whensuch failure proximately causes damages itgives rise to an action in tort.” Legal malpracticecan be the “elephant in the room,”a risk that we all know exists but that wetry to ignore. It goes without saying thatan attorney never actively seeks to commitmalpractice, but given that lawyersare sued for malpractice, it is time that the“elephant” was acknowledged, understood,and avoided.<strong>The</strong> elements of legal malpractice arefairly straightforward. <strong>The</strong> circumstancesunder which the malpractice is committedare another matter. <strong>The</strong>y are so broadand varied that we could spend countlesshours evaluating and discussing the topic.This article will focus on one particularsource of malpractice claims: handling, orpossibly mishandling, multiple- defendantrepresentation. This article will providegeneral guidelines for avoiding malpracticewhen working with multipledefendants.Advantages and Disadvantages ofRepresenting Multiple Defendants<strong>The</strong> specific advantages of representingmultiple defendants in a lawsuit varywith the circumstances. Often, the advantagesinclude the ability to present a jointdefensestrategy and the cost- effectivenessachieved when multiple clients hire oneattorney or firm to represent all of them. Ajoint- defense strategy inherently necessitatesthat the defendants cooperate, jointlyanalyze the issues, and exchange integralinformation in a protected environment.It also can prevent a plaintiff from “dividingand conquering” defendants. Anotherpotential advantage is that it prevents defendantsfrom attacking each other, whichdistracts a jury from the weaknesses in aplaintiff’s claims.Interestingly, the advantages canbecome disadvantages. In particular, cooperatingand openly exchanging informationhave disadvantages. A joint defensecan raise conflicts of interest as a matter78 n <strong>For</strong> <strong>The</strong> <strong>Defense</strong> n <strong>July</strong> <strong>2010</strong>■ Susan E. Wassell is an associate with Fain Anderson VanDerhoef, PLLC, in Seattle. Her practice focuses on the defense ofcomplex litigation, including claims of medical and other professional liability, products liability, general civil litigation matters andpersonal injury. Ms. Wassell has several years of legal experience and has nursing and hospital risk management experience aswell. <strong>The</strong> author would like to acknowledge Erin H. Hammond, also an associate with Fain Anderson VanDerhoef, PLLC, in Seattle,for her contributions to this article.
of law, conflicts of interest among the defendantsfrom misaligned defenses, andconfidentiality issues, particularly relatedto attorney- client privilege. <strong>For</strong> example,because of the free flow of information in ajoint- defense scenario, if defendant 1 sayssomething to the attorney, the attorneycan, and possibly must, disclose that informationto defendant 2, and the reverse istrue. As a result, the parties may feel nervousabout disclosing potentially relevantinformation to an attorney. It could alsoresult in animosity among the defendants,depending on the information’s character.In states that have comparative fault laws,a joint defense might also prevent one defendantfrom requesting an allocation offault to another defendant, which has consequencesif one defendant has a muchstronger defense than the other.In light of the advantages and potentialdisadvantages, poorly representing thesedefendants can have devastating ramifications—professionally,financially, andemotionally. As such, it is important tounderstand how to avoid the pitfalls of representingmultiple defendants and the legalmalpractice lawsuits that it can generate.Elements of Legal MalpracticeWhile the elements of legal malpracticeclaims are fairly simple, court interpretationof each element has been quite complex.Although the elements to prove legalmalpractice vary slightly from state-tostate,a plaintiff in a legal malpractice casemust prove (1) the existence of an attorneyclientrelationship; (2) a duty owed to theclient; (3) a breach of the duty owed to theclient; and (4) proximately caused damages.Each of these elements requires individualand joint evaluation in a legalmalpractice claim. <strong>For</strong> instance, if noattorney- client relationship existed, someonecould not sue for legal malpractice. <strong>For</strong>the purposes of this article, assume that anattorney- client relationship is not at issue.Duty and Breach of Duty<strong>For</strong> a plaintiff’s legal malpractice suit to succeed,he or she must demonstrate that anattorney breached a duty that the attorneyhad been obligated to perform. Professionalnegligence implicates a duty of care, whilea breach of fiduciary duty implicates a dutyof loyalty and honesty. Pereira v. Thompson,230 Or. App. 640, 653 (2009) (citing Dan B.Dobbs, <strong>The</strong> Law of Torts §487, 1392 (2000)).In a legal negligence claim, as opposedto an ethics complaint, a plaintiff mustdemonstrate that an attorney failed to adequatelyperform the duty of care, which isthe duty “to act as a reasonably competentattorney in protecting and defending the interestsof the client.” Pereira, 230 Or. App.at 654 (citing Onita Pacific Corp. v. Trusteesof Bronson, 315 Or. 149, 160, 843 P.2d 890(1992)); see also Stonewall Corp. v. ConestogaTitle Ins. Co., <strong>2010</strong> U.S. Dist. Lexis 1107, 13–14 (S.D.N.Y. Jan 7, <strong>2010</strong>) (citing Achtman v.Kirby, McInerney & Squire, LLP, 464 F.3d328, 337 (2d Cir. 2006) (quoting Grago v.Robertson, 49 A.D.2d 645, 370 N.Y.S. 2d255 (N.Y. 1975)). Common examples of circumstancesfor which an attorney may beheld liable include “ignorance of the rulesof practice, failure to comply with conditionsprecedent to suit, or… neglect to prosecuteor defend an action.” Stonewall Corp.v. Conestoga Title Ins. Co., <strong>2010</strong> U.S. Dist.Lexis 1107, 13–14 (S.D.N.Y. Jan 7, <strong>2010</strong>) (citingHatfield v. Herz, 109 F. Supp. 2d 174, 180(S.D.N.Y. 2000) (quoting Bernstein v. Oppenheim& Co., 160 A.D.2d 428, 554 N.Y.S.2d 487, 489–90 (1st Dep’t 1990)). Typically,proving breach of the duty of care requiresexpert testimony. It must set forth the appropriatestandard of care owed by a reasonableattorney and must also explain howthe attorney allegedly failed to uphold thatstandard. Pereira, 230 Or. App. at 654 (citingOnita Pacific Corp. v. Trustees of Bronson,315 Or. 149, 160, 843 P.2d 890 (1992)).That said, some jurisdictions allow aplaintiff to pursue a breach of fiduciaryduty claim. This claim alleges that an attorneyowes a client a duty of loyalty, goodfaith, and fair dealing, and the attorneybreached this duty. In this instance, theparty claiming the breach “must plead andprove the breach, and must show that thebreach caused an identifiable loss or resultedin injury to the party.” Id. at 654–55(citing Lindland v. United Business Investments,298 Or. 318, 327, 693 P.2d 20 (1984)).A plaintiff can establish breach of the dutyof loyalty by proof that an attorney had aconflict of interest or had been self- dealing.Id. It is incumbent upon an attorney to defendagainst these types of claims by showingfull disclosure or some other defense. Id.It is well established that an attorneydoes not have a duty to ensure or guaranteethe most favorable outcome possible,and an attorney is never bound to exerciseextraordinary diligence, or act beyondthe knowledge, skill, and ability ordinarilypossessed by members of the legal profession.Simko v. Blake, 448 Mich. 648, 656(Mich. 1995). See also Kellos v. Sawilowsky,254 Ga. 4, 5 (Ga. 1985). Furthermore, mereerrors in judgment by a lawyer are not generallygrounds for a malpractice action ifthe attorney acted in good faith and exercisedreasonable care, skill, and diligence.Simko, 448 Mich. at 658 (citing Baker v.Beal, 225 N.W.2d 106, 112 (Iowa 1975));Rorrer v. Cooke, 313 N.C. 338, 340–42, 329S.E.2d 355 (N.C. 1985); Stonewall Corp.v. Conestoga Title Ins. Co., <strong>2010</strong> U.S. Dist.Lexis 1107, 13–14 (S.D.N.Y. Jan 7, <strong>2010</strong>) (citingRosner v. Paley, 65 N.Y.2d 736, 481 N.E.2d 553, 554, 492 N.Y.S.2d 13 (N.Y. 1985)).Damages and Proximate CauseIf a plaintiff establishes a duty existed anda breach happened, a plaintiff still will notsucceed in a legal malpractice case unlesshe or she can prove that he or she sufferedloss, and if so, he or she still must provethat he or she suffered ascertainable loss.See Kirk v. Heppt, 2009 U.S. Dist. Lexis80989, 24–25 (S.D.N.Y. Sept. 3, 2009) (citingWeil, Gotshal & Manges, LLP v. FashionBoutique of Short Hills, Inc., 10 A.D.3d 267,780 N.Y.S.2d 593, 596 (App. Div. 2004)).A plaintiff must also show that but for anattorney’s breach of duty, he or she wouldhave prevailed in the underlying actionor would not have sustained a loss. Thisis the “case within a case” idea. Nobile v.Schwartz, 265 F. Supp. 2d 282, 289 (S.D.N.Y.2003); Davis v. Klein, 88 N.Y.2d 1008, 1009–10, 648 N.Y.S.2d 871, 671 N.E.2d 1268 (N.Y.1996); Ashton v. Scotman, 260 A.D.2d 332,686 N.Y.S.2d 322 (N.Y. App. Div. 1999).As explained by one court, “<strong>The</strong> causationrequirement is a high bar to attorneymalpractice liability and seeks to insure atight causal relationship exists between theclaimed injuries and the alleged malpractice.”Kirk v. Heppt, 2009 U.S. Dist. Lexis80989, 24–25 (S.D.N.Y. Sept. 1, 2009) (citingFlutie Bros. LLC v. Hayes, No. 04 Civ. 4187(DAB), 2006 U.S. Dist. Lexis 31379, 2006WL 1379594, at *5 (S.D.N.Y. May 18, 2006)).Determining whether a negligent actor omission proximately caused an injury<strong>For</strong> <strong>The</strong> <strong>Defense</strong> n <strong>July</strong> <strong>2010</strong> n 79