Selling a Law Practice in Illinois
A retiring lawyer can now sell a law practice in Illinois with the adoption of Rule 1.17. Illinois attorneys considering buying or selling a law practice 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 to take possession of the file; and(3) the fact that the client’s consent to the transfer of the client’s files will be presumed if the client does not take any action or does not otherwise object within ninety (90) days of receipt of the notice.
If a client cannot be given notice, the representation of that client may be transferred to the purchaser only upon entry of an order so authorizing by a court having jurisdiction. The seller may disclose to the court in camera information relating to the representation only to the extent necessary to obtain an order authorizing the transfer of a file.
(d) The fees charged clients shall not be increased by reason of the sale.
Ill. Sup. Ct. R. 1.17
Best practice tips on selling a practice can be found in an ISBA bar publication titled “Best Practice Tips: Selling My Law Practice to My Association.” A list of law practices for sale is available on this website by clicking the “Categories” tab on the main menu, according to lawyer Robert Schaller of the Schaller Law Firm. Learn more about selling a law practice, including the ease of selling a law practice online.