Highlights of the ABA’s Legal Malpractice Claims Study 2008 - 2011

Midwest Lawyers, LLC

In the latest study, “Profile of Legal Malpractice Claims” 2008 – 2011, published by the American Bar Association’s Standing Committee on Lawyers’ Professional Liability, law firms continue to be targets of professional liability claims

Midwest Lawyers, LLC

The study showed that there was a decrease in lower-dollar amount claims and increases in higher dollar amount claims similar to what occurred in the 1999 - 2003 and 1985 – 1995 studies which were also periods of economic recession in the United States.

Midwest Lawyers, LLC

In the ABA’s profile of legal malpractice claims : 2008 – 2011 Personal Injury Plaintiff fell to second place behind Real Estate. This was attributed in the study to a decline in Personal Injury Plaintiff claims of 5.97 percent in 2011 and 4.37 percent overall since 1985 while an Overall growth of Real Estate claims of 3.8 percent occurred.

AS REPORTED IN THE ABA’S PROFILE OF LEGAL MALPRACTICE CLAIMS : 2008 – 2011 SEPTEMBER 2012

Top 5 Number of Claims by Area of Law

Real Estate 20.33% Personal Injury Plaintiff 15.59% Family 12.41%Estate, Trust, Probate 10.67% Collection/Bankruptcy 9.20%

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Most Common Alleged ErrorsAS REPORTED IN THE ABA’S PROFILE OF LEGAL MALPRACTICE CLAIMS : 2008 – 2011 SEPTEMBER 2012

Failu

re to

Know

or A

pply th

e La

w 1

3.6%

Proc

rast

inat

ion in

Per

form

ance

/Followup 1

0%

Inad

equat

e Disc

over

y/ In

vest

igat

ion 9

.2%

Plan

ning E

rror-P

roded

ure C

hoice

8%

Lost

File

, Doc

umen

t Eviden

ce 8

%

0.0%2.0%4.0%6.0%8.0%

10.0%12.0%14.0%16.0%

Midwest Lawyers, LLC

Most notably was an increase in claim expense payments in the $10,001 - $25,000 category and the indemnity paid category of $10,000 - $50,000. The largest decrease in both the defense or indemnity payments was in the $0 to $10,000 category.

Indemnity Payments

$0 $1 - $10,000$10,000 - $50,000 $50,000 - $100,000$100,001 - $250,000 $250,001 - $500,000Over $500,000

Expense Payments

$0 -$10,000 $10,001 - $25,000$25,001 - $50,000 $50,001 - $100,000Over $100,000

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Period Of Time From Opening To Closing Of Claim File

Under 6 Months

6-12 Months

12 to 24 Months

24 to 36 Months

Over 36 Months

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00%

Midwest Lawyers, LLC

As reported in The ABA’s Profile Of Legal Malpractice Claims : 2008 – 2011