Vol. 70, No. 5, May
1997
20:5.7 Limited Liability Legal Practice
(a) (1) A lawyer may be a member of a law firm that is organized as a
limited liability organization solely to render professional legal services
under the laws of this state, including chs. 178 and 183 and subch. XIX
of ch. 180. The lawyer may practice in or as a limited liability organization
if the lawyer is otherwise licensed to practice law in this state and the
organization is registered under sub. (b).
(2) Nothing in this rule or the laws under which a lawyer or law firm
is organized shall relieve a lawyer from personal liability for any acts,
errors or omissions of the lawyer arising out of the performance of professional
services.
(b) A lawyer or law firm that is organized as a limited liability organization
shall file an annual registration with the State Bar of Wisconsin in a form
and with a filing fee that shall be determined by the State Bar. The annual
registration shall be signed by a lawyer who is licensed to practice law
in this state and who holds an ownership interest in the organization seeking
to register under this rule. The annual registration shall include all of
the following:
(1) The name and address of the organization.
(2) The names, residence addresses, states or jurisdictions where licensed
to practice law, and attorney registration numbers of the lawyers in the
organization and their ownership interest in the organization.
(3) A representation that at the time of the filing each lawyer in the
organization is in good standing in this state or, if licensed to practice
law elsewhere, in the states or jurisdictions in which he or she is licensed.
(4) A certificate of insurance issued by an insurance carrier certifying
that it has issued to the organization a professional liability policy to
the organization as provided in sub. (bm).
(5) Such other information as may be required from time to time by the
State Bar of Wisconsin.
(bm) The professional liability policy under sub. (b)(4) shall identify
the name of the professional liability carrier, the policy number, the expiration
date and the limits and deductible. Such professional liability insurance
shall provide not less than the following limits of liability:
(1) For a firm composed of 1 to 3 lawyers, $100,000 of combined indemnity
and defense cost coverage per claim, with a $300,000 aggregate combined
indemnity and defense cost coverage amount per policy period.
(2) For a firm composed of 4 to 6 lawyers, $250,000 of combined indemnity
and defense cost coverage per claim, with $750,000 aggregate combined indemnity
and defense cost coverage amount per policy period.
(3) For a firm composed of 7 to 14 lawyers, $500,000 of combined indemnity
and defense cost coverage per claim, with $1,000,000 aggregate combined
indemnity and defense cost coverage amount per policy period.
(4) For a firm composed of 15 to 30 lawyers, $1,000,000 of combined indemnity
and defense cost coverage per claim, with $2,000,000 aggregate combined
indemnity and defense cost coverage amount per policy period.
(5) For a firm composed of 31 to 50 lawyers, $4,000,000 of combined indemnity
and defense cost coverage per claim, with $4,000,000 aggregate combined
indemnity and defense cost coverage amount per policy period.
(6) For a firm composed of 51 or more lawyers, $10,000,000 of combined
indemnity and defense cost coverage per claim, with $10,000,000 aggregate
combined indemnity and defense cost coverage amount per policy period.
(c) Nothing in this rule or the laws under which a lawyer or law firm
is organized shall diminish a lawyer's or law firm's obligations or responsibilities
under any provisions of this chapter.
(d) A law firm that is organized as a limited liability organization
under the laws of any other state or jurisdiction or of the United States
solely for the purpose of rendering professional legal services that is
authorized to do business in Wisconsin and that has at least one lawyer
licensed to practice law in Wisconsin may register under this rule by complying
with the provisions of sub. (b).
(e) A lawyer or law firm that is organized as a limited liability organization
shall do all of the following:
(1) Include a written designation of the limited liability structure
as part of its name.
(2) Provide to clients and potential clients in writing a plain-English
summary of the features of the limited liability law under which it is organized
and of the applicable provisions of this chapter. |