Iowa clients can sue Ill. lawyers for malpractice there: Iowa SC
DES MOINES -- An Illinois law firm did enough business with a client in Iowa to ensure it could be sued there for malpractice in Illinois, the Iowa Supreme Court ruled Friday.
In Addison Insurance Co. v. Knight, Hoppe, Kurnik & Knight L.L.C. (
docket# 52 / 05-0306) the Supreme Court affirmed a lower ruling denying the firm's preanswer motion. Knight Hoppe's petition alleged lack of personal jurisdiction, improper venue and forum non conveniens in the suit.
The law firm had appealed the ruling of Judge Kristin L. Hibbs of the Iowa District Court for Linn County to the Iowa Supreme Court.
Addison Insurance Co., based in Cedar Rapids, IA, filed suit against
Knight Hoppe in Linn County, Iowa in 2002. The firm had earlier failed to file an appeal in an important case before the Illinois Appeals Court on behalf of Addison, a long-time client.
Knight Hoppe opposed the fact that Addison filed the malpractice suit in Iowa's Linn County, which Addison has called home since 1998. The law firm is based in the outer Chicago suburb of Des Plaines, Ill., and has been representing Addison's insureds since 1993.
But the Justices didn't buy the lawyers' "outsiders" argument. "We find the law firm had sufficient minimum contacts with the state of Iowa to warrant personal jurisdiction," wrote
Justice Michael J. Streit in the opinion.
"The parties had a long-term business arrangement that caused the law firm to have substantial, ongoing communications with the insurance company in Iowa," he added.
The SC opinion also notes that Knight Hoppe was paid $823,871 by Addison for legal services from 1998 to 2003. In the case alleging malpractice against Knight Hoppe, Addison was seeking settlements costs and fees of $683,419.