Legal Question in Business Law in Illinois

Law Firm Dissolutions and Minority Shareholder Oppression and Squeeze-Out.

We have a 30 year equal law partnership that is in the form of a Professional Corporation in the State of Illinois. I am the oldest of three and have been the major support (probably up to 50%) of the incomefor the first 20 years. I primarily had Corporate business retainers and sent all litigation to my partners, in the last year or so I have been losing some of my retainer clients due to my ill health as well as they are out growing me. Their business has grow in comparison. They know I need to keep my health insurance yet they are threatening to dissolve the firm and take their clients. This would harm me financially and leaved me without health insurance (uninsurable because heart desease-bypass surgery- high blood pressure-cancer-other problems) also cancel my disability insurance and small life policy etc because we have group insurance. I could go cobra but that leaves me more than a year short of 65 Medicare. Please Help-


Asked on 6/13/01, 6:19 pm

1 Answer from Attorneys
Kenneth J. Ashman Ashman Law Offices, LLC

Re: Law Firm Dissolutions and Minority Shareholder Oppression and Squeeze-Out.

I can relate to what you say, having recently gone through a law firm break-up with health insurance issues and implications. Unfortunately, I had to file suit in order to protect my and my firm's interests and obtained a temporary restraining order to prevent certain acts. These litigation steps, however, quickly resulted in a favorable settlement agreement. While my former firm was an Illinois limited liability company rather than a professional corporation, many of the issues are the same as to professional corporations.

It is difficult if not impossible, however, to render any significant advice in this forum given your situation, for any rendering of legal advice in this context would require a thorough review of the statute governing professional corporations (as I had to do regarding the Limited Liability Company Act) and application of the provisions found therein to your specific situation.

Needless to say, your "partners" are without authority to take wrongful, oppressive acts, and, to the extent that they are, you may have remedy. On the other hand, businesses, including law firms, are rightfully permitted to go out of business & dissolve.

I would suggest that you consult an attorney for a comprehensive examination of your rights.

-- Kenneth J. Ashman; Ashman Law Offices, LLC; 312-648-1700

Read more
Answered on 8/24/01, 7:46 pm


Related Questions & Answers

More Business Law questions and answers in Illinois