10 of the most common legal troubles for veterinarians

Mind-numbing television programs truly have a therapeutic effect after a long day at work. Listening to Oprah Winfrey or Tom Cruise talk about their latest philanthropic and humanitarian undertakings makes my eyes roll back in my head faster than a pint of Guinness.

I was undertaking such therapy the other night when David Letterman's famed Top 10 List came on. It hit me. I wanted to create my own top 10 list. No, it's not a list of the worst client excuses for not paying their bills when checking out. Rather, I wanted to do something from the filing cabinets of my law practice.

Let's call it the "Top 10 Legal Problems Veterinarians Constantly Get Themselves Into." OK, Paul, here we go:

#10. Poor employment records

Veterinarians are notorious for not "getting around to" documenting employee failures and errors until the problems reach the firing stage. At that point, there is no paper record to support the doctor when he/she finally decides to let the slacker go. In liberal states, the veterinarian may face a wrongful-discharge claim. In all states, the vet has pretty much guaranteed himself a losing defense to any claim for unemployment benefits.

#9. Failing to recognize a really agitated client

This is how veterinarians end up appearing before a state board. Even clients who may seem to be excessively persistent, annoying and/or overbearing have to be dealt with. Ignore them at your peril. Remember that you do not need to do anything wrong in order to be held accountable to the state regulatory authority. You don't even need to be working on a case that is serious. If a client is unhappy, we need to address the problem or smoothly arrange to send the client elsewhere.

#8. Signing a non-compete agreement, assuming it can't be enforced

Why do so many veterinarians do this? I think there is some pervasive delusion that if an employment agreement doesn't seem fair, we can just sign and get out of it later. I cannot believe how frequently I see this mistake.

#7. Practicing without the liability protection of an LLC or corporation

I can only assume that a lot of veterinarians like the idea of being personally liable for parking-lot injuries, broken toilet seats and assaults on clients by other clients. Why else would they bypass the legal protection of using a legal operating entity?

#6. Poor staff training and facilities to avoid patient escape

It is amazing how many cases of pet escape and injury occur in animal hospitals. Staff needs to understand the magnitude of the potential loss involved.

#5. Abdicating all financial duties and information to others

Sure, we are busy. It is hard to find time to periodically review deposits and expenses that are ordinarily managed by a bookkeeper or assistant. A number of my clients have managed to find the time, though, after the Internal Revenue Service calls to inform them that tax deposits haven't been received for a few quarters.

#4. Wishful thinking in negotiating non-compete distances and periods

In this area, I have seen it all. Employed vets are sure they will be living in town only a few more years, so why not sign a three-year non-compete? Then comes the unexpected dream house or unexpected baby. Suddenly, staying put becomes unexpectedly attractive. Three years unexpectedly seems very, very long.

#3. Ignoring your clinic's operations and inventory

It is never a good idea to have dirty drains, poor medicine inventory and/or outdated drugs. But while you might not get caught in some states, you'd better pay especially close attention in places like Florida and Virginia, which routinely monitor and sanction veterinarians for facilities violations.

#2. Failing to keep clients apprised in a deteriorating case

When a medical case or surgical case is getting worse, many veterinarians become more apprehensive about picking up the phone. The truth is, these cases call for more client contact, not less. Perceived doctor stonewalling is a common immediate precursor to a health-care lawsuit.

#1. Entering into partnerships and buy-ins without adequate documentation and planning

Anyone who has ever attended one of my lectures at a continuing education conference knows where I stand on this issue.

Badly conceived, badly designed partnerships have the potential to be career-killers, marriage-ruiners and/or your financial planner's worst nightmare.

Or, on a brighter note, bad professional partnerships can be considered the most lucrative thing that has happened to attorneys since the Tax Reform Act of 1986.

Dr. Allen is president of the Associates in Veterinary Law P.C., which provides legal and consulting services exclusively to veterinarians. He may be contacted at (607) 754-1510 or info@veterinarylaw.com