The risk management landscape for collection attorneys has become more difficult over the past few years, given the explosion of FDCPA lawsuits filed against them. A silver lining, however, is that the vast majority of these suits are frivolous, and can usually be dismissed in summary fashion.
In connection with law firm malpractice insurance however, these suits can present a trap for the unwary. It is vital that no matter how “bogus” or “innocuous” such a suit appears (or indeed turns out) to be, each and every one of them must be reported to the firm’s current (and potential future) insurer, for the three major reasons.
