1990 Illinois Rules of Professional Conduct (this Rule was adopted in 2005)
Rule 1.17 Sale or Transfer of a Law Practice
[revisions to 1990 Rule are
indicated as follows: text deleted from the 1990 Rule is shown by
strikethrough;
additions to the 1990 Rule are shown in red]
A lawyer, the estate of a deceased lawyer, or the
guardian or authorized representative of a disabled lawyer may transfer or
sell, and aA lawyer or a law firm may
accept 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 goodwill, if the following conditions are satisfied.:
(a) The lawyer whose practice is transferred or sold
The seller ceases to engage in the private practice of law in
all or part of Illinois
due to: the geographic area in which the
practice has been conducted;
(1) death or disability;
(2) retirement;
(3) declaration of inactive status with the ARDC;
(4) becoming a member of the judiciary;
(5) full-time government employment;
(6) moving to an in-house counsel
or other position of employment not involving the private practice of
law; or
(7) a decision to no longer be
actively engaged in the private practice of law on a fee representation
basis in the geographic area in which the practice has been conducted.
(b) The entire practice is
transferred or sold to one or more lawyers or law firms.;
(c) No less than 90 days prior to the expected
date of closing or transfer,
The seller gives written notice
shall be given to each of the
seller's current clients via certified mail 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
the receipt of the notice; and.
(4) the expected date of final closing or
transfer.
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.
(e)
Admission to or retirement from a law partnership or professional association,
retirement plans and similar arrangements, and a sale of tangible assets of a
law practice, do not constitute a sale or purchase governed by this rule.
(f) Lawyers who sell or transfer their law practice
are subject to the ethical standards applicable to involving another lawyer
in the representation of a client. These include, for example, Rule 1.1
(Competence); Rule 1.5 (Fees); Rule 1.6 (Confidentiality of Information);
Rule 1.7 (Conflict of Interest: General Rule); Rule 1.9 (Conflict of
Interest: Former Client).
(g) This rule does not apply to
the transfers of legal representation between lawyers when such transfers are
unrelated to the sale of the practice.
Adopted May 23, 2005, effective immediately.