Closing a Practice, Dissolution, or Leaving a Firm

The Colorado Supreme Court Office of Attorney Regulation Counsel says, "A lawyer's duty of competent representation includes arranging to safeguard the clients' interests in the event of the lawyer's death, disability, impairment, or incapacity." Lawyers have the duty to plan ahead. The Office of Attorney Regulation Counsel has provided a Handbook and Forms: Planning Ahead: A Guide to Protecting Your Clients' Interests in the Event of Closing Your Practice, Your Disability or Death (One of Which is Inevitable). Portions courtesy of the Oregan State Bar Professional Liability Fund. This handbook contains helpful information on terminology, implementation, access to the trust account, client notification, and special considerations in case of death. There are three checklists and many sample forms, including fee agreements and engagement letters. This handbook is especially pertinent to a file retention policy. We recommend every attorney read this Handbook.

Resources for Dissolution of a Law Firm

• Checklist for Law Firm Dissolution (pdf file)
• ABA General Practice, Solo & Small Firm Section Magazine, January/February 2000 - This entire issue was dedicated to sunsetting a law practice. There are lots of articles addressing many issues. The magazine is available on the American Bar Association's website.
• Formal Ethics Opinion 104: Surrender of Papers to the Client Upon Termination of the Representation, adopted April 17, 1999
• Formal Ethics Opinion 116: Ethical Considerations in the Dissolution of a Law Firm or a Lawyer's Departure From a Law Firm, adopted March 17, 2007
• New Colorado Rules on Retention of Client Files, by Michael A. Kirtland and John M. Lebsack, The Colorado Lawyer, August 2011

Leaving a Law Firm

Checklist (excerpt from Common Mistakes Made by Lawyers, by James C. Coyle, Deputy Regulation Counsel, OARC, CLE Brown Bag Series, November 4, 2003):

• Notice (to firm, clients, courts, opposing counsel, and Attorney Registration)
• Agreement on terms of notice (to clients, court and opposing counsel)
• Agreement on how to separate clients and their retainers and costs; fee disputes in contingency matters
• Duty to report attorney misconduct (Colo. RPC 8.3)
• Duty to avoid other Colo. RPC violations (e.g., Colo. RPC 5.5(b)(non-lawyer, suspended or disabled lawyer))
• Hire an ethics lawyer or call the ethics hotline at (303) 860-1115 if you have any concerns
• Lessons learned the hard way:
  • 1) People v. Coffin, 2001 WL 1160892 (Colo. O.P.D.J. 1999)
  • 2) People v. Katz, 58 P.3d 1176 (Colo. O.P.D.J. 2002)
  • 3) People v. Sather, 936 P.2d 576 (Colo. 1997)
  • 4) People v. Weisbard, 35 P.3d 498 (Colo. 2002)
  • 5) People v. Egbune, 58 P.3d 1169 (Colo. 1999)
  • 6) People v. Wotan, 944 P.2d 1257 (Colo. 1997)
  • 7) People v. Stewart, 892 P.2d 875 (Colo. 1995)
  • 8) People v. Gray, 35 P.3d 611 (Colo. 2001)

Essays on Legal Ethics and Professional Conduct, by Alexander R. Rothrock, has lots of information on the departure from a law firm. It is published by CLE in Colorado, Inc. For more information or to order, go to www.cobar.org/cle or call (303) 860-0608. 

Need a form letter for notifying your clients you are leaving the firm? See the October/November 2004 issue of Trial Talk from the Colorado Trial Lawyers Association. The "Perfect" Letter to Clients from a Departing Lawyer, by Alec Rothrock, Esq.

When A Lawyer Leaves a Law Firm, Paul McLaughlin, The Law Society of Alberta, Practice Advisor.

Conflict Issues When Attorneys Switch Jobs, by Marcy G. Glenn, The Colorado Lawyer, May 1998, vol. 27, no. 5

Selling and Valuing a Law Practice

• C.R.P.C. 1.17 - Sale of a Law Practice
• What is My Practice Worth to My Spouse, My Partners or to Another Attorney, Ronald L. Seigneur
• The ABCs of Selecting a Business Valuation Expert, Ronald L. Seigneur MBA CBA CPA ABV