Rule 776. Appointment of Receiver in Certain Cases

      (a) Appointment of Receiver. Where it comes to the attention of the circuit court in any judicial circuit from any source that a lawyer in the circuit is unable properly to discharge his or her responsibilities to his or her clients due to disability, disappearance or death, and that no partner, associate, executor or other responsible party capable of conducting the lawyer’s affairs is known to exist, then, upon such showing, the presiding judge in the judicial circuit in which the lawyer maintained his or her practice, or the Supreme Court, may appoint an attorney from the same judicial circuit to serve as a receiver to perform certain duties hereafter enumerated. Notice of such appointment shall be made promptly to the Administrator of the Attorney Registration and Disciplinary Commission either at his Chicago or Springfield office, as appropriate. A copy of said notice shall be served on the affected attorney, or on his or her personal representative, guardian of the estate, or court-appointed representative in any manner in which service of process is authorized by Rule 765(a).

      (b) Duties of the Receiver. As expeditiously as possible, the receiver shall take custody of and make an inventory of the lawyer’s files, notify the lawyer’s clients in all pending cases as to the lawyer’s disability, or inability to continue legal representation, and recommend prompt substitution of attorneys, take appropriate steps to sequester client funds of the lawyer, and to take whatever other action is indicated to protect the interests of the attorney, his or her clients, or other affected parties. A copy of the appointing order shall be served on the affected attorney at his or her last known residence address.

      (1) The attorney appointed to serve as receiver shall be designated from among members of the bar from the same judicial circuit who are not representing any party who is adverse to any known client of the disabled, absent or deceased lawyer, and who have no adverse interest or relationship with that lawyer or his or her estate which would affect the receiver’s ability to perform the duties above enumerated.

      (2) An attorney appointed as receiver may decline the appointment for personal or professional reasons. If no available members of the bar from the same judicial circuit can properly serve as receiver as a result of personal or professional obligations, the Administrator of the Attorney Registration and Disciplinary Commission shall be appointed to serve as receiver.

      (3) Any objections by or on behalf of the disabled, absent, or deceased lawyer, or any other interested party to the appointment of or conduct by the receiver shall be raised and heard in the appointing court prior to or during the pendency of the receivership.

      (c) Effect of Appointment of Receiver. Where appropriate, a receiver appointed by the court pursuant to this rule may file a motion with the court for a stay of any applicable statute of limitation, or limitation on time for appeal, or to vacate or obtain relief from any judgment, for a period not to exceed 60 days. A motion setting forth reasons for such stay shall constitute a pleading sufficient to toll any limitations period. For good cause shown, such stay may be extended for an additional 30 days.

      (d) Liability of Receiver. A receiver appointed pursuant to this rule shall:

      (1) not be regarded as having an attorney-client relationship with the clients of the disabled, absent, or deceased lawyer, except that the receiver shall be bound by the obligations of confidentiality imposed by the Rules of Professional Conduct with respect to information acquired as receiver;

      (2) have no liability to the clients of the disabled, absent or deceased lawyer except for injury to such clients caused by intentional, willful, or gross neglect of duties as receiver; and

      (3) except as herein provided, be immune to separate suit brought by or on behalf of the disabled, absent, or deceased lawyer.

      (e) Compensation of the Receiver.

      (1) The receiver shall normally serve without compensation.

      (2) On motion by the receiver, with notice to the Administrator of the Attorney Registration and Disciplinary Commission, and upon showing by the receiver that the nature of the receivership was extraordinary and that failure to award compensation would work substantial hardship on the receiver, the court may award reasonable compensation to the receiver to be paid out of the Disciplinary Fund, or any other fund that may be designated by the Supreme Court. In such event, compensation shall be awarded only to the extent that the efforts of the receiver have exceeded those normally required in an amount to be determined by the court.

      (f)  Termination of Receivership. Upon completion of the receiver’s duties as above enumerated, he or she shall file with the appointing court a final report with a copy thereof served upon the Administrator of the Attorney Registration and Disciplinary Commission.

Adopted October 20, 1989, effective November 1, 1989; amended March 25, 1991, effective immediately; amended June 22, 2017, eff. July 1, 2017; amended Dec. 28, 2017, eff. Feb. 1, 2018.


Last Modified on Rules.Legal: