summary
Introduced
02/06/2026
02/06/2026
In Committee
02/06/2026
02/06/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Attorney Act. Prohibits a private equity group, hedge fund, or any entity owned, operated, or controlled by a private equity group or hedge fund, including management services organizations, that is involved with a law firm or an attorney's practice from: (1) interfering with the professional judgment of attorneys in representing clients; (2) exercising control over or being delegated the power to own or determine the content of client records, select, hire, or terminate the employment of attorneys or allied legal staff in whole or in part based on competency or proficiency; or set competency or proficiency parameters for attorneys or allied legal staff; or (3) charging any fee to the attorney or law firm that is directly or indirectly based on the fees, revenues, or profits of the attorney or law firm. Prohibits an attorney from sharing legal fees directly or indirectly with an out-of-state alternative business structure unless: (1) the attorney is also licensed in the state in which the alternative business structure is approved; (2) the fees are compensation for providing legal services in that state; and (3) the law of that state is controlling under the Illinois Rules of Professional Conduct or a successor rule. Provides for the recovery of statutory damages, attorney's fees and costs, and injunctive or declaratory relief as a remedy for violation. Defines terms. Contains applicability provisions. Effective immediately.
AI Summary
This bill, titled "LAW FIRM OWNERSHIP," amends the Attorney Act to protect the integrity of legal representation by placing restrictions on certain entities involved with law firms. Specifically, it prohibits private equity groups, hedge funds, and their affiliated entities, including management services organizations (which provide administrative support in exchange for ownership of law firm assets), from interfering with attorneys' professional judgment, controlling client records, or making hiring or firing decisions for attorneys and legal staff based on their competence. These entities are also forbidden from charging fees to law firms that are tied to the firm's revenue or profits. Furthermore, an attorney cannot share legal fees with an out-of-state alternative business structure (an entity that allows non-attorney ownership or decision-making in providing legal services) unless the attorney is also licensed in that state, the fees are for services rendered there, and that state's law governs the arrangement. Violations of these provisions can result in statutory damages, attorney's fees, and court orders to stop the prohibited actions. The bill also clarifies that these new rules apply to contracts entered into after the bill becomes law.
Sponsors (1)
Last Action
Referred to Assignments (on 02/06/2026)
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