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New Rule Gives Clients Access to Vital Information about Illinois Lawyers
Consumer Watchdog HALT Congratulates Illinois on Becoming One of Select Few States to Require Lawyers to Disclose Whether They Carry Malpractice Insurance
June 17, 2004

Contact: Contact Kristin Weber at 202/887-8255, kweber@halt.org

In a move that will arm clients with essential information about attorneys, the Illinois Supreme Court has announced that it will change its rules and require lawyers to disclose whether they possess legal malpractice insurance coverage. The measure comes after HALT, a national legal consumer watchdog group, urged the Court to adopt a requirement that would, at a minimum, allow clients to determine whether a lawyer carried insurance before deciding whether to hire a particular lawyer or sue a negligent attorney.

"Responsible lawyers have always carried professional liability insurance as a matter of course. It's sad that this measure is still needed," stated HALT Associate Counsel Suzanne Mishkin, noting that a 2001 Attorney Registration and Disciplinary Commission survey found that nearly half of licensed Illinois attorneys are not covered by malpractice insurance. "We applaud the Illinois Supreme Court for taking this long-overdue step in protecting clients, who are entitled to know whether they will have meaningful recourse if an attorney mishandles a case."

Starting in October, Illinois will join a small handful of states where lawyers must disclose on their annual registration statements whether they maintain professional liability insurance. But Illinois officials anticipate going a step further by publicizing this information on the Disciplinary Commission's Web site. To give its new rule even sharper teeth, the Commission will conduct random audits to confirm information reported by attorneys. If a lawyer fails to provide or misrepresents insurance information, the lawyer will be barred from practicing law.

Mishkin believes the rule will likely encourage the tens of thousands of uninsured Illinois attorneys to finally purchase insurance coverage. She pointed to South Dakota, which saw a marked increase in the number of insured attorneys as well as lower insurance rates once the state starting requiring lawyers without coverage to disclose their uninsured status on letterhead.

Mishkin hopes Illinois' important step will lead the state to follow Oregon's example and require all of its practicing attorneys to carry malpractice coverage. "You wouldn't let a doctor perform surgery if he wasn't backed by an insurance policy. We should expect the same safety measures from lawyers, whom we entrust with our deepest confidences and our most valuable assets," added Mishkin. "While most will never commit malpractice, a few dollars a week in insurance fees is a small price to pay to guard clients and protect the integrity of the profession."

Founded in 1978, HALT—An Organization of Americans for Legal Reform is a nonpartisan, nonprofit public interest organization. HALT pursues an aggressive education and advocacy program that challenges the legal establishment to improve accountability in the civil justice system.