Duties to Non-Clients Flashcards
Sale of Law Practice
The entire practice (or field of practice) must be sold and the seller must stop private practice entirely or in the field sold in the geographic area or jurisdiction where the practice is, but may work as in-house counsel or for a charitable organization.
Must give written notice to seller’s clients about the sale, their right to retain other counsel, their right to take their files, and that their consent to the transfer is presumed if they don’t take action within 90 days of receiving the notice.
Client’s fees cannot increase because of the sale and the purchaser must honor existing fee agreements (but may modify them as required).
CA: All or substantially all of the practice must be sold. Seller not prohibited from practicing after sale. Client info cannot be disclosed to nonlawyers because of the sale. The seller (or purchaser, if seller is dead or disabled) must get each client’s written consent before the client’s matter is transferred, but if reasonable efforts have been made to locate the client and no response is received within 90 days, consent is presumed.
