Claims Corner

by Bill Bandi - Vice President Claim

   Recently, we have begun to, receive more claims filed in out of state jurisdictions. At this point, we have' no explanation for this phenomenon. As one might expect, most of these claims are generated from those Oklahoma lawyers who reside near the state borders but that is not always the case.

   It goes without saying that a legal malpractice claim is difficult to defend even in the lawyer4s'home state. It becomes even more difficult when the lawyer is a stranger to, the forum.

   Before you decide to take on a matter outside the "friendly confines" of Oklahoma, be sure you become very familiar with the law which governs the matter. Do not assume that Statutes of Limitation and the like are the same as they are in Oklahoma. Indeed, do not assume an3jhingg! Perhaps the best solution is to associate with local counsel. Then, if something goes wrong, at least you have a buffer between you as an out-of-state lawyer and a hostile jury.

   Some recent examples of malpractice cases where the unfortunate Oklahoma lawyer got caught in the out-of-state trap:
   * Oklahoma lawyer was hired by out-of-state savings and loan to draw a note and mortgage pursuant to the sale of a commercial property. (Lawyer had represented that he was an expert in commercial real estate closings). The loan was unusual in~ that the S&L reserved the right to purchase a portion of the property, and such right was made a precondition of the loan. Ultimately, it was found that the loan violated the antitying provisions of the Homeowners Loan Act. The S&L subsequently became insolvent, and the Directors and the Oklahoma lawyer were sued by a Federal regulatory agency, for inter alia, closing the illegal transaction. The matter was settled for $160,000.00.
   * Oklahoma lawyer was hired by an Oklahoma plaintiff who was injured out-of-state in a friendly backyard volleyball game at a picnic. Lawyer "busted" the local Statute of Limitation. Plaintiff sustained approximately $22,000.00 in medicals and wage loss. Plaintiff then sued the Oklahoma lawyer in the foreign court which retained jurisdiction under the long-arm statute. The trial resulted in a jury verdict for $215,000.53.
   * Oklahoma lawyer assisted in attempting to terminate an out-of state pension plan, as well as in assisting the plan fiduciary to invest not only the plan funds but personal funds as well. A portion of those funds were invested in entities in which the lawyer had some interest. Additionally, the lawyer was never able to successfully terminate the plan. The investments "went south" and the lawyer was sued on numerous theories in the foreign state. This claim resulted in a settlement of $435,000.00.

   Again we must emphasize that extreme caution should be exercised when considering whether to accept legal matters with substantial ties outside the state of Oklahoma. There is much truth to the old adage "There's no place like home"!