Triple Jeopardy: Civil, Disciplinary, And Regulatory Proceedings Against Professionals

Members of regulated professions, such as engineers, architects, financial advisors, and health professionals, can face multiple proceedings arising from the same conduct. For instance, for a single event, an engineer may be sued in civil proceedings for negligence, be charged under building code or safety legislation, and face disciplinary proceedings of his/her professional body. The engineer has no control over the sequence of such multiple proceedings.

The insurer's interest is solely in the outcome of the civil proceedings, however, adverse rulings in regulatory and/or disciplinary proceedings can have a significant impact on those civil proceedings. Consequently, in practical terms, it may be prudent for the insurer to ensure that the insured is properly defended in the parallel proceedings. This article explores, from the insurer's perspective, the interplay among the civil, quasi-criminal, and disciplinary proceedings.