Can someone please enlighten me on how to avoid this kind of situation? Is this because these guys didn't have any papers signed with the guy about him being a temp until they decide later?
On that note...they could potentially have a malpractice suit against him for his failure to advise them on something as basic as an employment agreement. We'd really need to know a lot more to know if this is the case.
There are a lot of unknowns here, but I'm curious if you hire an employee who has passed the bar in your state, and they perform legal work, does that make them effectively your lawyer?