Edward Poll, The Daily Record Newswire
Short and sweet or long and tearful? Which kind of goodbye is your typical modus operandi?
If you like the short and sweet variety, you will have to rethink your habits when it's time to say goodbye to your law practice. Whether you are retiring completely or merely selling your practice to delve into another area of the law, you will have some chores to do in terms of tidying up the loose ends. Those chores fall into two main areas: ethics and business.
In this article, we will look at ethics concerns. In my next column, we will examine business concerns.
Records
You will need to gather all old records to create a database of former and current clients. This will be useful for two purposes:
To satisfy the rules of professional conduct about notifying current clients of new counsel.
To create databases for marketing the new practice and assuring the highest future revenue of the firm.
Review and satisfy attorney's record-keeping obligations.
Letters of instruction
You will need to notify current clients that the practice will be sold. Send the notification via certified mail (return receipt requested) to each client's last known address. Create an organization system to keep track of all client-notification letters sent in accordance with the rules of professional conduct and to track responses received.
Send out a letter of instruction, to be completed and signed by the client and returned to the attorney, that will explain how the client wants his matters/files handled.
Make sure that you receive letters of instruction from all clients.
Client files
It is important to deal appropriately with client files, whether closed or open.
For any clients who elect not to go with the buying attorney, assist them in obtaining new legal representation. Offer the names of three competent attorneys as well as the name of your local bar association's lawyer referral service. Keep records of what was sent to whom as well as their responses. Make sure that you get receipts from clients who pick up their files in accordance with their requests to take matters to another attorney. Take into account your jurisdiction's file-retention policies, if any, before shredding files not taken by clients who no longer want the firm to represent them.
Review closed files and contact the clients whose matters are in those files, covering both current and former clients. Depending on clients' instructions or lack thereof, destroy old files (except original documents) as appropriate under your jurisdiction's file-retention policy.
Review and prioritize all open files with emphasis on time-sensitive issues such as statutes of limitations, trial dates, filing deadlines, etc. Also confirm that open client files can withstand the scrutiny of public or outside review.
File appropriate pleadings - including substitution of attorneys, motion to withdraw, motion for continuance, and the like - as may be appropriate for all litigated matters.
Client trust accounts
You should transfer client trust accounts to the purchasing attorney.
Client and employee assurances
Your clients and your employees will have concerns about your transition.
Continue your obligation to ensure that clients' interests and confidences are protected. Fulfill your fiduciary obligations regarding safekeeping client property.
In addition, focus on the needs and fears of employees to assure a smooth transition to the purchasing attorney.
Obviously, transitioning from your law practice cannot be done quickly. It must be handled with forethought and concern for the clients uppermost in your mind.
Edward Poll, J.D., M.B.A., CMC, is a law practice management thought leader and contributor to this publication. His website is at www.lawbiz.com.
Published: Tue, May 19, 2015
