RECENT NEWS FROM PLF: JUNE 2025

Dear Readers,

Welcome to July’s edition of PLF’s Newsletter. In this issue, we bring you recent legal updates, insights, and practical tips to help you and your business thrive in the complex legal landscape.

Client Victories 

Shareholder disputes. A client came to us with a common problem. A business once owned and operated by two parents was passed down along with other assets to multiple children, stepchildren, and grandchildren with varying levels of participation in the day-to-day operations of the business.

It was no surprise that the parties didn’t always agree on the best path forward. Tempers flared and a lawsuit was filed. Situations like this require more than just legal knowledge and expertise. They require compassion, understanding, and a certain amount of finesse.

Patterson Law Firm was able to help the client come to a reasonable resolution of the various disagreements. The resolution ended the protracted and costly litigation, freed the client to guide the business to what looks like will be a more profitable future, and gave the other heirs the assets they deserved to dispose of as they wished.

If you have a business stymied by owner conflict, contact Kristi L. Browne at kbrowne@pattersonlawfirm.com for a free consultation.

Court Strikes Down Attorney’s Excessive Compensation Demands. In a recent decision from the Circuit Court of Cook County, Patterson Law Firm’s Motion for Partial Summary Judgment was granted, providing a sharp reminder to legal professionals and business clients alike: contingency fee arrangements, even when contractually agreed upon, remain subject to judicial scrutiny for reasonableness. 

The case involved a dispute between a client and his former attorneys over a seven-figure verdict, statutory fee awards, and the interpretation of a contingency fee agreement.

After prevailing in a federal jury trial on employment discrimination claims—including a monetary judgment, reinstatement, and additional benefits—the Plaintiff found himself entangled in a second battle: recovering the proceeds. His former legal counsel asserted entitlement to a fee far exceeding the awarded statutory amount, basing their calculation on an expansive interpretation of the engagement agreement. The client, in turn, argued the fee structure violated Illinois Rule of Professional Conduct 1.5, which governs reasonableness and clarity in attorney compensation.

The trial court agreed with Mike Haeberle that the agreement was unenforceable as written due to its failure to clearly define what would be included in a “recovery” or how equitable relief would be calculated.

Courts Expect Good Faith in Fee Petitions. The underlying federal court had already slashed the attorney’s requested fee, finding it excessive. The state court adopted that reasoning in limiting the firm’s compensation. The court awarded the attorneys only the statutory fee previously determined by the federal judge—an amount significantly lower than the firm sought under the contingency agreement. Any additional funds were ordered to be returned to the client, including those held by the firm and the Clerk of the Circuit Court.

If you have a problem with your legal counsel, contact Michael Haeberle at mhaeberle@pattersonlawfirm.com

Testimonial 

A message from a client to David Sanders: “You’ve become a family friend at this point David.  Just goes to show how much you care and manage your clients.”

New Rule Change: Lawyer Bias and Harassment

Effective July 1, 2024, the Illinois Supreme Court implemented a major update to Rule 8.4 of the Illinois Rules of Professional Conduct. The newly amended Rule 8.4(j) marks a significant shift in how harassment and discrimination are treated within the legal profession, setting clearer expectations for attorneys and law firm leaders statewide.

This change reflects Illinois’ growing commitment to fostering equity and professionalism in legal practice and brings the state closer in line with the ABA’s Model Rule 8.4(g), which addresses misconduct related to bias and harassment.

The revised Rule 8.4(j) now states that it is considered professional misconduct for a lawyer to:

“Engage in conduct that the lawyer knows or reasonably should know is harassment or discrimination on the basis of race, sex, religion, national origin, ethnicity, disability, age, sexual orientation, gender identity, marital status or socioeconomic status in conduct related to the practice of law.”

This language represents a significant change from the previous version of the rule, which limited discipline to situations where there had already been a final adjudication of discrimination under applicable laws.

Practical Tip: Document Your Decisions
When your business makes an important decision, whether it’s entering a new partnership, approving a major purchase, or resolving an internal dispute, don’t rely on memory alone. In litigation, the side with clear, dated, and consistent documentation often has the upper hand. Written records can provide a credible paper trail that shows your intent, the context of your decision, and the steps you took to act in good faith.

After every significant meeting or phone call, send a short follow-up email summarizing the key points and any agreed-upon actions. This not only keeps everyone on the same page but also creates a contemporaneous record that is far more persuasive in court than trying to recall details from memory.

Firm News

PLF Welcomes Emily Murtaugh as she joins the team as a Paralegal.

Congratulations to Jordan Matyas as he was elected to the Decalogue Board at the 2025 Annual Installation and Awards Dinner.

Last but not least, one of our youngest PLF Members, June Haeberle, shared with us the following art piece after our Summer Outing:

Contact Us

For further information or legal assistance, reach out to us at:

Thank you for reading! We look forward to supporting your business.

Best regards, 

PLF

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