Out-of-state law firm can be sued for malpractice, Iowa Supreme Court rules

An Illinois firm that handled an Iowa insurance company's customers in Illinois had sufficient minimum contacts with the state of Iowa to be sued there, the Iowa Supreme Court has ruled.

An Illinois law firm regularly represented an Iowa insurance company's insureds in Illinois. After the firm allegedly botched an appeal to the Illinois Appellate Court in a case involving an Illinois resident, the insurance company filed a legal malpractice claim in state court in Iowa.

The firm argued the court lacked personal jurisdiction.

But the court held that the firm had sufficient minimum contacts with the state of Iowa.

"The parties entered into a contract for services that lasted for ten years. The written guidelines for the attorneys to follow envisioned close supervision by [the plaintiff] and constant communication between the two parties. ... Needless to say, the [defendant] attorneys had extensive contact with [the plaintiff] over the years. While the original agreement was created in Illinois, the relationship between the parties continued unabated after [the plaintiff] moved to Iowa. Since the move, [the plaintiff] paid [the defendant] approximately $800,000 for its services, which indicates [the defendant] represented many of [the plaintiff's] insureds over the years. ...

"[The defendant's] contacts with Iowa were high quality communications which assisted [the plaintiff] in making critical decisions concerning litigation. Moreover, we find the alleged malpractice arose out of or was related to these contacts," the court said.

It also noted that "Iowa has a 'manifest interest' in providing its residents with a convenient forum for redressing injuries inflicted by out-of-state actors."

Addison Insurance Co. v. Knight, Hoppe, Kurnik & Knight, LLC (Lawyers USA No. 9936155) Iowa Supreme Court No. 52/05-0306. June 29, 2007.

Credit: Lawyers USA Staff