Death of sole principal - practice manager to wind up firm

Scenario

Mr HZ, principal of the sole principal practice FGX & Co., has unfortunately died. As Mr. HZ RIP was a sole principal, it is necessary to bring to the Estate’s attention Section 61 of the Solicitors Act 1954 as substituted by Section 31 of the Solicitors (Amendment) Act 1994 which provides as follows:

“Where a solicitor who was a sole practitioner has died, his personal representative may appoint another solicitor to carry on his practice for such period and on such terms as the Law Society may think fit.”

Requirements

Ms TU, the personal representative of Mr. HZ, writes to the Law Society (email/letter to firms@lawsociety.ie) nominating solicitor Mr. BP of BXP & Co. as practice manager of the firm to enable its windup.   

Once the Law Society is satisfied that Mr BP is a person of good standing with the Law Society, it contacts Mr BP confirming his appointment for a period of six-months and sets out the Law Society’s requirements for the windup of the firm. Note, the appointment of a nominated solicitor by the personal representative is subject to the approval of the Law Society of Ireland.  

No legal services can be provided in the name and on behalf of the firm until the Law Society has approved the nominated solicitor. &²Ô²ú²õ±è;

The approved nominated solicitor will be entitled to sign cheques and negotiable instruments while winding up the late solicitor’s practice. They will also be authorised to handle client funds in addition to client funds which were received prior to the date of death.   

Important

Whether or not an appointed practice manager can provide legal services/advice on behalf of a firm depends on the status of the firm’s professional indemnity cover. If the firm has PII cover in place, then the practice manager can provide legal services/advice to clients of the firm (e.g. completing live/active files). Obviously, no new clients should be engaged. If the firm does not have PII cover in place or as is more common, the PII cover for the firm expires during the 6-month period of their appointment, then the practice manager cannot provide legal services/advice on behalf of the firm. They are limited to conducting a purely administrative windup (e.g. collecting monies owed to the firm, paying invoices, sending live/active files to the nominated solicitors of clients, etc.). &²Ô²ú²õ±è;

Section 31 requirements – to be confirmed/completed by the practice manager of FGX & Co. (Mr BP) 

  1. Contact the firm’s broker (details will be provided by the Law Society) and advise them of your appointment as practice manager of the firm FGX & Co.  
  2. Confirm that all live/active files of the firm are sent to the nominated solicitors of clients.   
  3. Confirm that all client monies of the firm are sent (along with the respective file) to the nominated solicitors of clients.   
  4. Confirm that all closed/inactive files of the firm have been placed in storage (not a home/private residence) and provide the Law Society with (i) the name/address of this location and (ii) the name/contact details of the practicing solicitor who has access to the files in storage.   
  5. Contact the firm’s reporting accountant (details will be provided by the Law Society) and file a closing accountant’s report to the date the existing sole principal practice last received, held, controlled or paid clients’ monies (i.e. the date of cessation). This report should be filed with the Law Society within three months following the date of cessation. All queries relating to this, or other financial matters should be directed to the Law Society’s Financial Regulation section (financialregulation@lawsociety.ie). â¶Ä¯&²Ô²ú²õ±è;
  6. As there is no succeeding practice to FGX & Co., it is necessary for it to obtain run-off cover from the Run-off Fund, as provided for by the Solicitors Professional Indemnity Insurance Regulations in force and confirm to the Law Society that this has occurred.   

Note, you are required to notify the Run-off Fund of your intention to cease practice no later than 60 days before your firm’s cessation date (see Appendix 5 in the Run-off Fund Guidelines). &²Ô²ú²õ±è;

The Run-off Fund is contactable at DWF Claims (Ireland) Ltd, The Lennox, 50 Richmond Street South, Saint Kevin's, Dublin 2, D02 FK02, (telephone: 01 790 9400 and email: SPF@dwfclaims.com). For further information relating to run-off cover please review the Law Society’s Guidelines in the ‘Running a Practice/Closing a Practice’ section in the solicitor’s area on the public page of the Law Society’s website www.lawsociety.ie. &²Ô²ú²õ±è;

Once in receipt of the required confirmations and documentation confirming the windup of the firm, the Law Society will proceed to mark the sole principal practice FGX & Co. as ceased on its records. &²Ô²ú²õ±è;