The Illinois Supreme Court addressed malpractice damages arising out of the negligent failure to preserve an Illinois Securities Law Claim. The Court held that, had the lawyers properly preserved the Securities Law Claim, statutory damages would have been awarded. Thus, actual damages in the malpractice action included the statutory damages, such as interest and attorneys’ fees, that would have been awarded pursuant to the Securities Law Claim.
The Court rejected the defendants’ argument that such damages were barred by Illinois’ prohibition on awarding punitive damages against attorneys. The Court also held that interest should be awarded from the date of the purchase of stock through the date that the plaintiff settled the underlying claim, not through the date of the malpractice judgment. Finally, the court held that interest should be calculated before the underlying settlement is deducted from the malpractice damages.
(This is for informational purposes and is not legal advice.)