Lawyer Transitions: Departing Your Firm

The days of spending an entire career at one firm are long gone.  By the end of three years, nearly half of all associates leave.  Partners bail out for many reasons – compensation, lifestyle choice, and conflicts with other partners – to name a few.

No matter who you are, tread lightly when you leave.  Departing lawyers have ethical, contractual, and legal responsibilities.

If you are a partner

Conduct your partnership withdrawal in a manner that honors the contractual and fiduciary responsibilities owed to your fellow partners.  Contractual duties are controlled by your written partnership agreement.  Fiduciary duties are described in case law and codified by statute in Oregon’s Revised Partnership Act.

If you are not a partner

Review your employment contract, employment letter, office policies, office procedures, or any other applicable terms that may control the process for terminating your relationship with your current firm or your obligations upon departure.

Are issues likely to arise?

Consult outside counsel experienced in the areas of lawyer mobility, partnerships, fiduciary duties, lawyer separation, and law firm dissolution.

Give notice before you contact clients

Inform the firm of your decision to leave before contacting any clients.  Failing to give adequate and timely notice to your firm or partners before you contact clients is a violation of the duty of loyalty owed by a lawyer to his or her firm based on their contractual or agency relationship.  It may also constitute conduct involving dishonesty, fraud, deceit, or misrepresentation in violation of Oregon RPC 8.4(a)(3).

Although there is no explicit rule requiring lawyers to be candid and fair with their partners or employers, such an obligation is implicit in the prohibition…against dishonesty, fraud, deceit, or misrepresentation. Moreover, such conduct is a violation of the duty of loyalty owed by a lawyer to his or her firm based on their contractual or agency relationship.” In re Complaint as to the Conduct of Murdock, 328 OR 18, 25 (1998), citing, In re Smith, 315 Or 260, 266 (1992). See also OSB Formal Op No 2005-70; ABA Formal Op No 99-414.

Assessing your client caseload

Undoubtedly there are clients you would like to take with you, but there may also be clients you prefer to leave behind.  Draft a client notification letter informing clients of your departure.  Schedule a meeting with your supervising partner or other appropriate member(s) of the firm.  Bring a printout of your current cases and your draft client letter.  This meeting must occur before you contact any clients.  [Note: more than one notification letter will be necessary if you intend to keep some clients and leave others behind.]

For clients transitioning to your new firm

Make arrangements to obtain trust funds, copy paper and digital records, and sign new fee agreements.  Checklists documenting the steps to take when leaving a firm are available from the OSB Professional Liability Fund.

For clients you are leaving behind

Properly document client files by preparing memos describing the status of each case and any upcoming deadlines.  If you are attorney of record, withdraw or confirm that a substitution of counsel has been filed where necessary.  Otherwise, you remain on the hook.  Check out the resources available from the OSB Professional Liability Fund describing a lawyer’s duties upon withdrawal and termination of representation.  If in doubt, contact the OSB General Counsel’s office or consult with outside counsel.

Transition don’ts

  • Misleading clients about their right to choose counsel
  • Contacting clients before speaking to your firm about your departure
  • Taking client files without the knowledge or consent of the firm
  • Taking client money without the knowledge or consent of the firm
  • Taking firm property, including forms, research, or other materials, without the consent of the firm

Transition Dos

  • Put clients first.  Whether you are making a lateral move to another firm or setting up your own practice, remember that the client’s freedom of choice in selection of counsel is paramount.
  • Keep the transition as amicable, professional, and stress-free as possible. Contentious withdrawals alienate clients and damage relationships.
  • Remember to take a list of clients with you so you can screen for conflicts at your new firm.

Handled properly, your departure should be smooth and uneventful.

 

All Rights Reserved 2017 Beverly Michaelis

 

Last Call: Ethical Guidelines for Client Files – June 7, 2017 CLE

Don’t miss “Ethical Guidelines for Client Files” on June 7, 2017.  Learn about OSB Formal Ethics Opinions 2016-191 – Client Property: Electronic-Only or “Paperless” Client Documents and 2017-192 – Client Property: Duplication Charges for Client Files, Production or Withholding of Client Files.

What are lawyers required to produce and when?

  • In some cases, lawyer notes and communications must be produced, in other instances they can be withheld: do you know the difference?
  • If you store data in proprietary law office software (e.g. in a docketing or practice management program), must you extract and convert the data for the client?
  • What circumstance might provoke disclosure of “confidential” information belonging to another client?
  • Can you refuse to deliver file material on the grounds that it is too burdensome or expensive to produce?
  • Is it possible to deliver less than the “entire client file” if the client consents?
  • Are you required to produce work product? Conflict information? Time and expense records? Reports about the client’s creditworthiness? Expert witness information? Metadata? Text messages?

Standards governing retention and storage of client files – Is it ethical to store client files electronically? Do any exceptions apply? What duties does a lawyer have when using electronic-only storage?

When to charge for locating, segregating, or duplicating file material – When you can (and can’t) pass costs on to the client, whether client originals can ever be destroyed, and your ethical responsibilities to the “impecunious client.”

Appreciate the difference between ethical duties and discoverability – The interplay of the Oregon Rules of Professional Conduct vs. state and federal rules of civil procedure.

Throughout the program “best practice” tips will be shared.

Date/Time/Location

Wednesday, June 7, 2017 from 10:00 a.m. to 11:30 a.m. Pacific Time.  This is a live, online webinar. Watch from your desktop computer or mobile device. Connect to audio via telephone or computer/device speakers.

Who Should Attend?

Lawyers, office managers or administrators, staff – anyone interested in learning more about Oregon’s new formal ethics opinions, 2016-191 and 2017-192.

Does the Program Include Written Materials?

Yes.  Written materials will be distributed electronically to all registered attendees before the event.

Ask Questions/Participate in Live Polling

Questions are welcome during the live event.  Attendees are also encouraged to participate in live, anonymous polling.

Registration Fee

$25 – Visit the Upcoming CLE page or click here, or choose the Register button below. Secure payment processing powered by Eventbrite. Visa, MasterCard, Discover, and American Express accepted. Program materials included in the registration price.

Eventbrite - Ethical Guidelines for Client Files

MCLE Credits
1.5 Ethics MCLE Credits pending.

Can’t Attend?

Video and audio recordings of Ethical Guidelines for Client Files will be available to download along with the program materials following the June 7 CLE. Price: $25. Contact me or visit my online CLE store after June 7.

All Rights Reserved [2017] Beverly Michaelis

Ethics CLE June 7  2017 – Ethical Guidelines for Client Files

Join me for a CLE on June 7, 2017 about OSB Formal Ethics Opinions 2016-191 – Client Property: Electronic-Only or “Paperless” Client Documents and 2017-192 – Client Property: Duplication Charges for Client Files, Production or Withholding of Client Files. Learn:

What are lawyers required to produce and when?

  • In some cases, lawyer notes and communications must be produced, in other instances they can be withheld: do you know the difference?
  • If you store data in proprietary law office software (e.g. in a docketing or practice management program), must you extract and convert the data for the client?
  • What circumstance might provoke disclosure of “confidential” information belonging to another client?
  • Can you refuse to deliver file material on the grounds that it is too burdensome or expensive to produce?
  • Is it possible to deliver less than the “entire client file” if the client consents?
  • Are you required to produce work product? Conflict information? Time and expense records? Reports about the client’s creditworthiness? Expert witness information? Metadata? Text messages?

Standards governing retention and storage of client files – Is it ethical to store client files electronically? Do any exceptions apply? What duties does a lawyer have when using electronic-only storage?

When to charge for locating, segregating, or duplicating file material – When you can (and can’t) pass costs on to the client, whether client originals can ever be destroyed, and your ethical responsibilities to the “impecunious client.”

Appreciate the difference between ethical duties and discoverability – The interplay of the Oregon Rules of Professional Conduct vs. state and federal rules of civil procedure.

Throughout the program “best practice” tips will be shared.

Date/Time/Location

Wednesday, June 7, 2017 from 10:00 a.m. to 11:30 a.m. Pacific Time.  This is a live, online webinar. Watch from your desktop computer or mobile device. Connect to audio via telephone or computer/device speakers.

Who Should Attend?

Lawyers, office managers or administrators, staff – anyone interested in learning more about Oregon’s new formal ethics opinions, 2016-191 and 2017-192.

Does the Program Include Written Materials?

Yes.  Written materials will be distributed electronically to all registered attendees before the event.

Ask Questions/Participate in Live Polling

Questions are welcome during the live event.  Attendees are also encouraged to participate in live, anonymous polling.

Registration Fee

$25 – Visit the Upcoming CLE page or click here, or choose the Register button below. Secure payment processing powered by Eventbrite. Visa, MasterCard, Discover, and American Express accepted. Program materials included in the registration price.

Eventbrite - Ethical Guidelines for Client Files

MCLE Credits
1.5 Ethics MCLE Credits pending.

Can’t Attend?

Video and audio recordings of Ethical Guidelines for Client Files will be available to download along with the program materials following the June 7 CLE. Price: $25. Contact me or visit my online CLE store after June 7.

All Rights Reserved [2017] Beverly Michaelis

Ethical Guidelines for Client Files CLE

Join me for a CLE on June 7, 2017 about OSB Formal Ethics Opinions 2016-191 – Client Property: Electronic-Only or “Paperless” Client Documents and 2017-192 – Client Property: Duplication Charges for Client Files, Production or Withholding of Client Files. Learn:

What are lawyers required to produce and when?

  • In some cases, lawyer notes and communications must be produced, in other instances they can be withheld: do you know the difference?
  • If you store data in proprietary law office software (e.g. in a docketing or practice management program), must you extract and convert the data for the client?
  • What circumstance might provoke disclosure of “confidential” information belonging to another client?
  • Can you refuse to deliver file material on the grounds that it is too burdensome or expensive to produce?
  • Is it possible to deliver less than the “entire client file” if the client consents?
  • Are you required to produce work product? Conflict information? Time and expense records? Reports about the client’s creditworthiness? Expert witness information? Metadata? Text messages?

Standards governing retention and storage of client files – Is it ethical to store client files electronically? Do any exceptions apply? What duties does a lawyer have when using electronic-only storage?

When to charge for locating, segregating, or duplicating file material – When you can (and can’t) pass costs on to the client, whether client originals can ever be destroyed, and your ethical responsibilities to the “impecunious client.”

Appreciate the difference between ethical duties and discoverability – The interplay of the Oregon Rules of Professional Conduct vs. state and federal rules of civil procedure.

Throughout the program “best practice” tips will be shared.

Date/Time/Location

Wednesday, June 7, 2017 from 10:00 a.m. to 11:30 a.m. Pacific Time.  This is a live, online webinar. Watch from your desktop computer or mobile device. Connect to audio via telephone or computer/device speakers.

Who Should Attend?

Lawyers, office managers or administrators, staff – anyone interested in learning more about Oregon’s new formal ethics opinions, 2016-191 and 2017-192.

Does the Program Include Written Materials?

Yes.  Written materials will be distributed electronically to all registered attendees before the event.

Ask Questions/Participate in Live Polling

Questions are welcome during the live event.  Attendees are also encouraged to participate in live, anonymous polling.

Registration Fee

$25 – Visit the Upcoming CLE, click here, or choose the Register button below. Secure payment processing powered by Eventbrite. Visa, MasterCard, Discover, and American Express accepted. Program materials included in the registration price.

Eventbrite - Ethical Guidelines for Client Files

MCLE Credits
1.5 Ethics MCLE Credits pending.

Can’t Attend?

Video and audio recordings of Ethical Guidelines for Client Files will be available to download along with the program materials following the June 7 CLE. Price: $25. Contact me for more information or visit my CLE on demand store after June 7.

All Rights Reserved [2017] Beverly Michaelis