HR0828 100TH GENERAL ASSEMBLY

HR0828 LRB100 18042 MST 33231 r

HOUSE RESOLUTION

WHEREAS, The practice of law in the State of Illinois places attorneys in a position of power when they are assisting clients in their times of need; and

WHEREAS, Out of the roughly 13,500 solo practitioners in this State, approximately 5,500, or 41%, do not carry malpractice insurance; 9% of small firms do not maintain malpractice insurance policies; and

WHEREAS, Regulators are concerned about young attorneys with large debts and little opportunity to find work being less likely to carry insurance and more likely to take on work outside their comfort range due to financial pressures; and

WHEREAS, Solo practitioners also lack the safety nets that help keep lawyers in other practice settings from committing malpractice; and

WHEREAS, The purpose of malpractice insurance is to protect both the attorney and the client from financial devastation in the case of allegedly negligent representation; and

WHEREAS, The Attorney Registration and Disciplinary Committee (ARDC) regulates the annual registration and reporting requirements of Illinois attorneys under the power of the Supreme Court Rules; and

WHEREAS, The Illinois State Bar Association (ISBA) is a voluntary organization whose primary focus is to assist Illinois lawyers in the practice of law and promote improvements in the administration of justice by shaping legislation, educating the public, and supporting the courts and the rule of law; and

WHEREAS, Each year, the ARDC requires Illinois attorneys to report whether they or their firms carry malpractice insurance, and makes this information public via the ARDC's website; and

WHEREAS, A prospective client may not know that the website exists or that it provides such information; and

WHEREAS, On January 25, 2017, the Illinois Supreme Court amended Supreme Court Rule 756(e) to require Illinois attorneys who do not carry malpractice insurance to complete a four hour, interactive, online assessment of the operations of their firm during each two-year registration period in an attempt to reduce instances of malpractice by uninsured attorneys in this State; and

WHEREAS, While this change is helpful, it may not address a situation where an Illinois attorney's malpractice insurance is cancelled or lapses between reporting periods, leaving the attorney uninsured while representing a client who would be unaware of that fact; and

WHEREAS, It would be beneficial for clients and attorneys, who may face subsequent legal repercussions, to be made aware when attorneys become uninsured; and

WHEREAS, This is a subject within the purview of the ARDC, the ISBA, and the judiciary branch; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE HUNDREDTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we urge the ARDC to look into further amending Supreme Court Rule 756 to require Illinois attorneys to disclose to prospective and current clients if and when the attorney's malpractice insurance has lapsed; and be it further

RESOLVED, That suitable copies of this resolution be given to the ARDC and the ISBA.