1. Professional Liability Defense Federation
Annual Meeting
October 4, 2018
“Biggest Purchase in their Client's Lives: Liability & Defense Issues for Real Estate Agents, Homes Inspectors & Title Agents”

2. Introduction Kiera Goral, Esq. QBE North America
AVP, Professional Liability Claims
Christopher B. Block, Esq.
Marshall Dennehey, Warner, Coleman & Goggin
Special Counsel
(973)
Gawain Charlton-Perrin
The Hanover Insurance Group
Director of Risk Management
(630)

3. Disclaimer
The recommendation(s) and contents of this material are provided for informational purposes only. This material does not purport to address every possible legal obligation, hazard, code violation, loss potential or exception to good practice. It should not be construed as indicating the existence or availability of any insurance coverage. Hanover Insurance Companies and their affiliates and subsidiaries specifically disclaim any warranty or representation that compliance with any advice contained herein will make any premises, property or operation safe or in compliance with any law or regulation. The Hanover Insurance Group with Eagle Icon is a trademark of The Hanover Insurance Group, Inc.
Copyright © 2018 The Hanover Insurance Group, Inc.

4. SECTIONS: Program Outline Cyber Breach and Social Engineering Claims
Fraud Allegations
Foreign Buyers
Home Inspector Claim Issues
Title Agent Claim Issues

5. SECTIONS: Program Outline Cyber Breach and Social Engineering Claims
Fraud Allegations
Foreign Buyers
Home Inspector Claim Issues
Title Agent Claim Issues

6. I. Phishing Scams
Agents’ responsibilities, duties. Are they covered under most policies, how are they best defended, are they still trending?
Professional Negligence Alleged?
Call Back Language in the Policy?
Is there a Cap or Sublimit?

7. SECTIONS: Program Outline Cyber Breach and Social Engineering Claims
Fraud Allegations
Foreign Buyers
Home Inspector Claim Issues
Title Agent Claim Issues

8. II. Fraud Allegations Against Home Inspectors & Real Estate Agents
Preliminary Questions: Are these claims covered by your client's policy? Does your state permit fraud claims to be insurable?

9. II. Fraud (Continued)

10. II. Fraud (Continued)
Given that most insured clients may not defend these allegations on their own:
-Can you recommend defending fraud claims anyhow?
- i.e. is this the means to a better global defense?
-Should you recommend defending these claims?
-Can you as the attorney avoid being caught in the middle?
(Hint: Be super proactive in papering your file)

11. II. Fraud (Continued)
Four smart ways to defend fraud cases a. On the pleadings – Was it plead with specificity? Does your state require this? Consider a motion to dismiss at inception. b. On the contract – Does the contract have a liquated damages clause? (Example: In NY, executed contracts with limitations of liability are consistent with public policy. Legion of supporting cases)

12. II. Fraud (Continued)
c. Has plaintiff met every prong needed for your state? Often states require fraud claims to have 'actual damages'. These claims can’t be speculative. Often requires experts. d. Did your client meet the statutory requirements? Are there safe harbor provisions in the fraud statute protecting a professional if she meets CE or investigatory milestones.

13. Distracting cartoon

14. II. Collusion
At times, relationships between the professionals, clients & developers can sometimes lead to the appearance of collusion and cause problems for attorneys defending the case.
Have you seen this before?
Have title agents and their relationships with lawyers caused claims of collisions or favoritism?

15. Jury Bias Do real estate professionals still face jury bias?
How can defense counsel overcome negative perception at trial?

16. SECTIONS: Program Outline Cyber Breach and Social Engineering Claims
Fraud Allegations
Foreign Buyers
Home Inspector Claim Issues
Title Agent Claim Issues

17. III. Foreign Buyers
Foreign buyers with cash transactions – What is the impact on subsequent claims.
High value properties + wealthy plaintiffs + plaintiff attorney being paid by the hour = hard case to resolve.
Early mediation with a tough former judge may help manage expectations.

18. SECTIONS: Program Outline Cyber Breach and Social Engineering Claims
Fraud Allegations
Foreign Buyers
Home Inspector Claim Issues
Title Agent Claim Issues

19. IV. Home Inspector Claim Issues
Defining & Limiting the inspector’s role in advertising Web pages can avoid lawsuits? Use of: Checklists Engagement Agreements/Pre-Inspection Contracts Limitation of Liability Clauses Mandatory Arbitration Clauses?

20. SECTIONS: Program Outline Cyber Breach and Social Engineering Claims
Fraud Allegations
Foreign Buyers
Home Inspector Claim Issues
Title Agent Claim Issues

21. V. Title Agents Claim Issues
Nature of claims Examples Defenses Computers? Microfiche? Old files?

22. Questions Kiera Goral, Esq. QBE North America
AVP, Professional Liability Claims
Christopher B. Block, Esq.
Marshall Dennehey, Warner, Coleman & Goggin
Special Counsel
(973)
Gawain Charlton-Perrin
The Hanover Insurance Group
Director of Risk Management
(630)