Attorneys face multiple exposures when client money or non-cash property is mismanaged.
To make matters worse, most malpractice insurance policies specifically exclude coverage for acts arising from an attorney's breach of fiduciary duty. Mismanagement of trust account funds often leads to state bar discipline, which can result in public reproval, suspension from practice for months or years, and even disbarment. Even when actual suspension is for as little as 30 days, attorneys are required to notify all their clients of the suspension, which can have dramatic affects on their ability to keep clients and attract new ones, and thus, on their income streams and lifestyles. In short, this lesson may be one of the most valuable continuing education courses you will ever take. Inc. All rights reserved.