New York Law (NYLE) Practice Exam

In a professional service limited liability company, who is liable for professional malpractice?

1. The LLC itself only

2. Partners of the company only

3. The lawyer herself and those under her supervision

4. Only the members of the firm

The correct answer is: The lawyer herself and those under her supervision

In the context of a professional service limited liability company (LLC) in New York, the liability for professional malpractice primarily falls on the individual professionals practicing within the firm. This means that the lawyer itself, along with those individuals under her direct supervision, can be held personally liable for malpractice claims arising from their professional services. This structure emphasizes the accountability of individual practitioners in maintaining the standard of care required in their professional activities. Even though the LLC provides a structure that limits the personal liability of its members for some corporate debts or actions, it does not shield them from liability for their own negligent or wrongful acts committed in the course of providing professional services. It's also important to note that other options do not adequately capture the legal responsibility for malpractice in a professional LLC. The LLC as an entity may not be found liable for professional malpractice in the same way individual members are, hence options suggesting only the company or just the partners would not align with liability principles set forth in professional conduct standards. Therefore, understanding that individual accountability still prevails in malpractice scenarios is essential for comprehending the legal framework governing professional service entities.