This case was decided by the Illinois Supreme Court in October 2014.
Plaintiffs alleged that the defendants committed legal malpractice when they failed to preserve a cause of action under the Illinois Securities Law against an investment firm. Plaintiffs alleged that the lawyers failed to file a rescission claim in a timely fashion causing it to be barred under the statute of limitations. A rescission claim allows the buyer to undo the purchase and obtain a refund of the purchase price. A complicating factor was the settlement of the underlying securities case for $3.2 million.
The main issue in the appeal before the Illinois Supreme Court was section 13(A) of the Illinois Securities Law, 815 ILCS 5/13(A) and how that section impacted the damage claim of the plaintiffs. That section provides: