08
Jul
11

Legal Mal Cases On Rise Nationally

Approximately 72.4% of all statistics are made up on the spot

A recent survey by Ames & Gough indicates that legal malpractice cases are on the rise.  This is not a surprise to most in the legal malpractice litigation industry.

The culprit is, not surprisingly, the real estate market.  In fact, I could not have better summarized the trend than as follows:

The survey cited real estate practices as the most likely to be sued, with “conflict of interest” and “failure to file timely” as the most common claims. Real estate claims, Ames & Gough notes, have been on the rise for the past three years, thanks to the large volume of transactions that occurred between 2005 and 2008 and the collapse in property values that followed amid the country’s broader financial collapse. The twin forces have prompted many parties to try to recoup real estate losses any way they can, according to Ames & Gough.

Further analysis suggests that the claims are not only more numerous, but also bigger.

On the flip side, however, the survey found a significant uptick in the number of claims with reserves over $500,000 (including loss and expense). Three insurers saw an 11 to 20 percent increase in these claims this year and two pegged their growth at six to 10 percent.

This has resulted in some carriers increasing premiums.

The good news?  Well, there is hope.  If the real estate market rebounds, then the claims could level off and start reducing.  One can hope.

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1 Response to “Legal Mal Cases On Rise Nationally”



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