Here is a sad case from New Jersey. Attorney Luhn is found to be a compusive gambler, an embezzeler, a bankrupt and, still, the legal malpractice plaintiff had to go through a full trial and appeal to get his monies back.
"Based upon his findings, Judge Gilroy concluded that Luhn breached a professional duty of care to plaintiff which proximately caused plaintiff’s damages, namely the loss of his investment. The judge concluded that, while Luhn’s breach of duty may not have been the only proximate cause of plaintiff’s loss, it was a substantial factor. The judge found the Courter firm vicariously liable because of its master-servant relationship with Luhn, and because Luhn was plainly acting within the scope of his employment with the Courter firm. ""Luhn did not disclose that he was a compulsive gambler.""In 1997, Luhn’s partners in the new firm discovered that he was embezzling funds""Luhn and his wife filed a petition in bankruptcy, resulting in an automatic stay of this action with respect to them""Luhn and his wife filed a petition in bankruptcy, resulting in an automatic stay of this action with respect to them"
Plaintiff finally won a judgment, along with legal fees. The NJ case.