When the Illinois Uniform Partnership Act (the “Act”) was amended several years ago to permit professional partnerships to become registered limited liability partnerships (“RLLP”), lawyers were among the professionals authorized to adopt that form of practice. However, the Illinois Supreme Court, which makes the rules governing the practice of law in Illinois, did not modify its rules to permit lawyers to organize as RLLPs.
The Illinois Supreme Court recently changed its rules to permit law firms practicing in the state of Illinois to be organized as RLLPs, effective July 1, 2003. By this change, lawyers in Illinois may take advantage of the protection afforded by the RLLP provisions of the Act, which include protection for the partners against joint and several liability for the malpractice of other attorneys in the firm. The new rules provide for several prerequisites in order for partners to avoid vicarious liability, such as the maintenance of prescribed levels of errors and omissions insurance, but those prerequisites should not prove to be an impediment to adopting the LLP form of practice.
Please do not hesitate to telephone a member of the firm if you are a lawyer and desire to avail yourself of the Act, or if you are another professional – accountant, doctor or architect – and are interested in learning more about practicing in a RLLP.