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Originally Posted by baddog
I am sorry, but are you implying that malpractive insurance covers the incorrect rendering of a legal opinion? You are kidding me, right?
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Not kidding at all, but not "implying" anything either. If an attorney gives you an incorrect opinion as the result of negligence, his malpractice insurance will often pay. If the attorney is diligent and careful but simply wrong, malpractice insurance will not likely cover. The written opinion tends to document what the attorney did, and is thus the best evidence of negligence or lack of it.
It's common corporate business practice to rely on written legal advice for the sole purpose of having some insurance companies to chase if the advice is wrong. It's a device for spreading legal risk around. Some corporations in risky lines of work go so far as to get multiple opinions from multiple law firms, just so they will have more insurance companies to chase if the advice turns out bad.
Better yet, reliance on a written legal opinion is often given great weight by prosecutors and courts. It's hard to convince a jury you had criminal intent if you asked your lawyers and did what they said, even when the lawyers were wrong.