Washington, DC—On April 6, HALT urged an American Bar Association committee to show a commitment to protecting legal consumers by adopting malpractice insurance requirements. HALT submitted written comments to the ABA's Standing Committee on Client Protection on its proposed model rule, which merely requires disclosure of insurance coverage rather than mandatory coverage. Calling the proposed rule "toothless" and "lacking clear guidance," HALT advised the committee to modify the rule to make malpractice insurance coverage mandatory. At a minimum, HALT urged the Committee to draft a rule requiring lawyers to directly inform clients of their insurance status.

"The proposed rule fails to fulfill the committee's core mission. The 'integrity of the legal profession' is not preserved when we allow lawyers to skirt malpractice insurance at their discretion," says HALT Associate Counsel Suzanne Mishkin, pointing out the contradictions between language in the committee's mission statement and the proposed rule. "The 'best interests of the client population' are certainly not served by a rule that continues to leave many victimized clients without a meaningful remedy."

Arguing that a legal malpractice lawsuit is frequently a victimized client's only recourse, HALT's comments revealed that the proposed rule that would make even malpractice suits a dead end option. "Given the limited nature of the discipline system and client security funds, legal malpractice suits have become imperative for many consumers-but these suits are worthless if the attorney is insolvent," says Mishkin. "The only way to ensure reimbursement for aggrieved clients is to require that lawyers carry malpractice insurance."

Further, HALT contended that the proposed rule's guidelines for disclosing insurance status would not serve the rule's intended purposes of informing clients of coverage and encouraging lawyers to obtain coverage. Reasoning that a rule requiring disclosure is toothless without transparency, HALT urged the committee to amend its proposal to require uninsured lawyers to directly inform clients and potential clients that they are not covered by liability insurance.

HALT's comments followed the Consumer Federation of America's adoption of a HALT-backed policy resolution calling for mandatory professional liability insurance earlier this year.

Founded in 1978, HALT—An Organization of Americans for Legal Reform is a nonpartisan, nonprofit public interest organization. HALT pursues an ambitious education and advocacy program that challenges the legal establishment to improve access and accountability and reduce costs in the civil justice system. Please visit www.halt.org for more information.