Pretzel & Stouffer Secures Substantial Win in Coverage Matter

Robert Chemers and Jonathan Federman, successfully argued on appeal for a reversal of the circuit court’s ruling finding coverage pursuant to a professional liability insurance policy as to a motion to adjudicate attorneys’ liens.

In a published opinion, the Appellate Court of Illinois, First District, agreed with Robert and Jonathan that a motion to adjudicate attorneys’ liens following a $29.4 million settlement and the escrow of $10 million for the attorneys’ fees, does not seek covered damages under the policy. The Court noted that the Attorneys Lien Act does not authorize a wronged client to seek compensatory damages for an attorney’s misdeeds, but only involves a dispute as to the attorney’s claimed right to the lien. The Court reversed the circuit court’s ruling.