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Legal Updates for Lawyers' Professional Liability

Pennsylvania Supreme Court Adopts Modification to Rule of Professional Conduct 1.8(j)

Presented by the Lawyers' Professional Liability Practice Group

October 11, 2024

After comments by the Pennsylvania Bar Association and the Philadelphia Bar Association, the Pennsylvania Supreme Court adopted a modification to the Rule of Professional Conduct 1.8(j). Rule 1.8(j) originally read: “A lawyer shall not have sexual relations with a client unless a consensual relationship existed between them when the client-lawyer relationship commenced.” 

Language was added to the text of both the Rule and the corresponding Comment [17] which expands the meaning of “sexual relations” in the context of a client-lawyer relationship. The term “sexual relations,” as contemplated by the Rule, is expanded to include, but is not limited to, “communications of a sexual nature.” The updated Comment [17] to the Rule 1.8 indicates that the revised language is, indeed, meant to be construed broadly as “communications of a sexual nature means requesting or transmitting any content, images, audio, video, or messages that contain sexually explicit material…” Comment [17] elaborates that prohibited communications include those “…that are intended to arouse or gratify the sexual desire of the sender or recipient.” 

Text messages between attorney and client containing sexual language would be included in this Rule, but the Rule could feasibly also include emoji used in a manner which is sexual in nature. Comment [17] indicates there is a carve out for “communications that contain sexually explicit content but are related to the client’s legal matter and are made in furtherance of the representation…” These types of communications are not “of a sexual nature” for the purposes of this Rule. All practitioners need to pay close attention to this change so they do not inadvertently violate the Rules as amended. 


 

Legal Updates for Lawyers’ Professional Liability – October 11, 2024, is prepared by Marshall Dennehey to provide information on recent legal developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. We would be pleased to provide such legal assistance as you require on these and other subjects when called upon. ATTORNEY ADVERTISING pursuant to New York RPC 7.1 Copyright © 2024 Marshall Dennehey, all rights reserved. No part of this publication may be reprinted without the express written permission of our firm. For reprints or inquiries, or if you wish to be removed from this mailing list, contact tamontemuro@mdwcg.com.

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Appellate Division Affirms Dismissal of Legal Malpractice Counterclaim Against Martin Law Firm

In Martin v. Loury, 2026 N.J. Super. Unpub. LEXIS 1617 (App. Div. July 15, 2026), Martin Law Firm represented Kirk Loury in an employment matter Mr. Loury filed against his former employer, Concord Equity Group Advisors LLC (“Concord”). The allegations included, among other things, that Loury was not fairly compensated for his employment with Concord. After a bench trial finding in Loury’s favor, the Appellate Division remanded this matter in February 2016 for a second trial. During the second trial, Concord CEO, Lee Argush, testified to lower compensation estimate than first trial. On remand, the second trial judge awarded Mr. Loury the same damages as the first judge, finding Mr. Argush not credible. After the findings during the second trial, Martin Law Firm filed an action against Mr. Loury to recover legal fees and costs of representing Mr. Loury in a second bench trial and Mr. Loury filed a counterclaim against Martin Law Firm for legal malpractice, alleging he should have received an even higher award in the second bench trial. In this allegation, Mr. Loury, through his expert, claimed that Martin Law Firm should have recalled Mr. Loury to the stand to rebut Mr. Argush’s testimony to allege an alternative theory of damages. Mr. Loury’s expert admitted that the second judge already rejected Mr. Argush's theory and accepted Loury's damages theory. The trial court barred Mr. Loury’s expert and dismissed Loury's counterclaim with prejudice before convening the collection trial, and the jury ruled in Martin Law Firm’s favor. Mr. Loury appealed the trial court's pretrial rulings barring his liability expert from testifying in support of his legal malpractice counterclaim, denying his motion for summary judgment on that counterclaim, and denying his motion to amend his counterclaim by adding attorney Joseph A. Martin as a codefendant. In affirming the trial court’s decision, the Appellate Division held that the trial court properly excluded Loury’s expert testimony in the counterclaim against Martin Law Firm because the expert could not explain how calling Loury as a rebuttal witness would have increased damages when the second judge already rejected Mr. Argush's testimony and accepted Loury's damages theory, making the expert’s causation opinion speculative. The Appellate Division also held that the trial court properly denied Mr. Loury's summary judgment motion on his malpractice counterclaim because reasonable minds could differ on whether Mr. Martin's alleged failures would have changed the second judge's damages award, given the judge already found Mr. Argush not credible, creating genuine factual disputes precluding summary judgment. Also, the Appellate Division held that the trial court properly denied Loury's May 2023 motion to add Joseph Martin individually because the statute of limitations expired in February 2022, six years after the 2016 appellate remand when Mr. Loury incurred new legal costs, and relation back did not apply because Mr. Loury knew Mr. Martin's identity throughout and strategically chose to sue only Martin Law Firm in his 2019 counterclaim.