Chapter 17, A. Preliminary Considerations

• Jurisdiction: United States

A. Preliminary Considerations

Professionals such as attorneys and accountants who provide services to a debtor entity and their insurers may be confronted with claims of malpractice. It may be a trustee or a creditors' committee that asserts a malpractice claim against professionals who have represented the debtor entity. Litigation related to malpractice claims in the bankruptcy context implicates various issues such as standing, conspiracy and in pari delicto.

The prospect of professional-liability claims involving debtors can arise from pre-petition or post-petition representation. When confronted with a professional-liability claim, one should first determine whether the claim relates to representation of the entity prior to the filing of bankruptcy, or whether it...