CBA Record May-June 2024

file timely motions to withdraw or for mally terminate the lawyer’s involvement in the client matter.

PRACTICAL ETHICS BY TRISHA RICH Best Practices for Lateral Transitions A t the beginning of every calendar year, almost perfectly in sync with many firms’ compensation sea the lawyer’s obligations of confidentiality and is likely not consistent with the law yer’s obligations to their Old Law Firm.

Collecting Accounts Receivable at the Old Law Firm

A departing lawyer’s obligations to their Old Law Firm do not end the day the lawyer gives notice. Indeed, a departing lawyer will likely have several outstand ing issues to deal with, chief among them, collecting any accounts receivable in which the departing lawyer is the bill ing or responsible lawyer. The departing lawyer should also expect to assist the Old Law Firm in assembling relevant files and properly transitioning any matters that remain at the Old Law Firm. This is only a summary of the many issues that can arise when lawyers leave law firms for what are, hopefully, greener pas tures. Additional resources on this topic are readily available. Readers can refer to any number of Illinois State Bar Asso ciation ethics opinions related to various issues in lateral transitions; the American Bar Association’s Formal Opinion 489; or a more recent opinion from the New York City Bar Association, Opinion 2023-1. Above all else, departing lawyers, their old law firms, and their new law firms all must work together to ensure orderly tran sitions that elevate client obligations and responsibilities above all other interests.

sons, there is a rush of lawyers leaving their old firms and moving to new adventures at new law firms. I receive many questions from lawyers and law firms alike during this period, asking about the same types of issues – providing notice, transferring client files, collecting accounts receivable, and the like. Generally, both lawyers and law firms are trying to meet their ethi cal and fiduciary obligations, but transi tions can be fraught with difficulties. In this column, I distill some best practices for lawyers and law firms with respect to conflicts, notice, file transitions, and col lection of accounts receivable. For clarity throughout, “Old Law Firm” will refer to the firm that the lawyer is departing, and “New Law Firm” will refer to the firm the lawyer is moving to. Conflicts One of the exceptions to Rule 1.6 (Confi dentiality) provides that lawyers can pro vide identifying client information to New Law Firms when undergoing pre-employ ment conflict checks, when providing such information would not prejudice the client. One mistake lawyers often make is providing too much information to New Law Firms; lawyers should be mind ful that the disclosed information should be limited to what would be necessary to detect and resolve conflicts of interest. In connection with lateral transfers, many lawyers will provide individualized client revenue information, payment informa tion, rate agreements, etc. Providing this amount of granular detail connected with a client’s identity is not consistent with

Notice There is almost never a case in which a client should receive notice of a lawyer’s impending move before Old Law Firm has received notice. In general, lawyers should provide notice first to Old Law Firm, then to clients. Lawyers should also be mind ful that although they are typically free to notify clients as soon as they have notified their Old Law Firms, (a) some partnership agreements build in a waiting period to notify clients, and (b) the ethics opinions generally agree that a joint notification from the Old Law Firm and the lawyer are vastly preferred to a notification from just the Old Law Firm or the lawyer. Any waiting period for client notifications that is contained in the Old Law Firm’s part nership agreement must be reasonable and cannot prejudice the affected clients. Transitioning Client Files The departing lawyer, the Old Law Firm, and the New Law Firm all have to cooper ate to facilitate the efficient transition of client files. Most importantly, though, the client files cannot be transferred until the Old Law Firm receives direction from the client, typically in writing. Once that has happened, Old Law Firm has an obliga tion to timely transition the entire client file along with any monies being held in trust. Clients, of course, may be required to settle any old bills or accounts receiv able at Old Law Firm. For any matters that are staying with the Old Law Firm that the departing lawyer will no longer work on, the lawyer should make sure to

Trisha Rich (trisha.rich@ hklaw.com) is a commercial litigator and legal ethicist at Holland & Knight, CBA Secretary, and Immedi ate Past President of the Association of Professional Responsibility Lawyers, the national bar association for legal ethicists.

One and Done: 6-Hour Professional Responsibility Overview May 21, 2024 Details and registration at Learn.ChicagoBar.org.

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