RSS Feed
The state Supreme Court is considering a proposal that would require California lawyers to tell clients from the get-go if they have malpractice insurance.
The State Bar’s Board of Governors, a 23-member board tasked with organizational, policy and professional issues, recently adopted a proposal that would require California lawyers to provide a written disclosure to clients and potential clients that they do not carry malpractice insurance.
The proposal has gone to the California Supreme Court for approval.
A ruling for the proposal has not been set yet, but the Supreme Court could adopt, deny or return the proposal for further review as soon as the end of this year.
California counts more than 160,000 practicing lawyers.
There isn’t a definitive number of how many California lawyers lack malpractice insurance. Legal experts estimate that some 15% to 20% of local lawyers don’t have it.
The proposed rule won’t likely have an impact on larger law firms in Orange County since the big firms already carry malpractice insurance.
But sole practitioners could be impacted, legal experts say.
Lawyers who do not carry malpractice insurance do not have any way of compensating clients if a case is mismanaged or goes awry, the backers of the proposal argue.
Supporters of the rule believe full disclosure will help individuals and businesses make better-informed decisions about where they will retain legal help.
“Certainly clients can hire uninsured lawyers if they want,” said James Towery, former chair of the State Bar’s Insurance Disclosure Task Force and partner at San Jose’s Hoge, Fenton, Jones
If you enjoyed this post, make sure you subscribe to my RSS feed!
Posted in 
