One impact in the current economic environment is a rise in malpractice claims against real estate lawyers. As real estate prices continue to fall, more individuals and businesses are suing their attorneys for bad results. The ABA reports that malpractice claims against real estate attorneys have risen four percentage points in the last four years.
The current economic situation will likely bring errors and omissions and malpractice claims against attorneys, accountants, investment consultants, and other service professionals that deal with investments, businesses, real estate and the stock market. Carriers should be aware of the potential for an increase in E & O and D & O litigation in the near future.