Ethics

Lawyers should review ABA Rule 1.17 before buying or selling a legal practice. Some states have enacted versions of ABA Rule 1.17. Lawyers are urged to consult with ethics counsel to review the version of ABA Rule 1.17 that was adopted in the applicable jurisdiction.

The sale of law practices has not always been allowed. Historically, sole practitioners were out of luck when they retired. Law practice sales were prohibited. Sole practitioners' counter-parts in small and not-so-small firms had an advantage by selling to associates or other partners who would continue the practice. That unfair advantage was neutralized with the adoption of ABA Rule 1.17.

ABA Rule 1.17: Client-Lawyer Relationship,

A lawyer or a law firm may sell or purchase a law practice, or an area of law practice, including good will, if the following conditions are satisfied:

(a) The seller ceases to engage in the private practice of law, or in the area of prac…

Selling a law firm in Illinois is now permitted with the adoption of Rule 1.17. Illinois attorneys considering buying or selling a law firm for sale should study the differences between Illinois Supreme Court Rule 1.17 and ABA Rule 1.17.

Ill. Sup.Ct. R. 1.17 -Sale of Law Practice:

A lawyer or a law firm may sell or purchase, and the estate of a deceased lawyer or the guardian or authorized representative of a disabled lawyer may sell, a law practice, including good will, if the following conditions are satisfied:

(a) The seller ceases to engage in the private practice of law in the geographic area in which the practice has been conducted;

(b) The entire practice is sold to one or more lawyers or law firms;

(c) The seller gives written notice to each of the seller's clients regarding:(1) the proposed sale;(2) the client's right to retain other counsel or …

Practicing Law After Selling a Law Firm

Read this interesting ABA ethics opinion about Rule 1.17 and a lawyer's ability to practice law after selling a law practice. What are the limitations on a lawyer practicing after selling a law firm? More than one attorney has asked the question, "Is it OK to practice law after selling a law firm?" The answer is more complex than one might expect. Ethics counsel should be consulted for guidance.

An interesting ABA Journal article addressed this issue when discussing a lawyer's ability to "practice law" after selling a law practice when the "practicing" is limited to assisting in the transition. Click the link to read more.

https://www.abajournal.com/magazine/article/ethics_opinion_its_ok_to_practice_after_selling_a_law_practice_to_assist. Other blog posts written by lawyer Robert Schaller of the Schaller Law Firm are posted at https://lawpracticesale.com/blog/.