In 2009 the Kentucky Supreme Court substantially revised the Kentucky Rules of Professional Conduct.
Articles in this index written before 2009 citing Kentucky Rules of Professional Conduct must be checked for any changes to the rule cited.

Foreclosure Sale Malpractice Alert

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The Risk: A few law firms handle a large volume of foreclosure suits in Kentucky. Rather than appear at foreclosure sales, these firms employ local lawyers to appear and bid on their behalf -- usually for a fee of $100. They make malpractice claims against local lawyers if the sale is missed, the bid is not in exact accordance with instructions, or the representation is in any way unsatisfactory. Damages claimed are the fair market value of the property determined by the amount the client was willing to bid.

Malpractice Avoidance: The fee of the local lawyer is small and the malpractice exposure large. Is a $100 fee worth the risk of suffering a malpractice claim and paying a deductible of several thousand dollars – or is this business better avoided?

Malpractice Prevention: Docket carefully. Have at least a dual calendaring system (manual or computer) with your secretary keeping a matched calendar. Establish a third party tickler system as an additional safeguard. Calendar all critical dates with adequate lead times for preparation. Conduct a personal, monthly review of all foreclosure sales matters.

 


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Disclaimer: The contents of this Web site are intended for general information purposes only and should not be construed as legal advice or legal opinion on any specific facts or circumstances. It is not the intent of this Web site to establish an attorney’s standard of due care for a particular situation. Rather, it is our intent to advise our policyholders to act in a manner which may be well above the standard of due care in order to avoid claims having merit, as well as those without merit. In the event any statement on the Web site differs from a statement in an issued policy the policy will control.

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