Cessation of partnership practice, transfer of files to a partnership practice, not a succeeding practice

Scenario

NOP Solicitors LLP (Partners, Mr GL and Mr SS) are ceasing practice. Mr GL is retiring from practice, and Mr SS is joining ABC Solicitors LLP (Partners, Mr RD, Mr PN, and Ms JA) as a partner. All live/active files as well as Wills, Title documents and Enduring Powers of Attorney not sent to the nominated solicitors of clients or returned to clients will transfer to ABC LLP which is not a succeeding practice to NOP LLP.    

ABC Solicitors LLP should ensure that it does not hold itself out in any way as the succeeding practice to NOP Solicitors LLP by whatever means this may occur (e.g. including on the firm’s letterhead a statement such as “Incorporating the firm NOP Solicitors LLP”). ABC Solicitors LLP will not be deemed a succeeding practice under the succeeding practice rules as it is not a partnership where two or more of the principals are identical to those persons who were principals of any partnership that conducted the preceding practice (i.e. NOP Solicitors LLP). Note, if Mr GL was also joining ABC Solicitors LLP as a partner, then the firm would under the succeeding practice rules be deemed a succeeding practice to NOP Solicitors LLP.    

Note, all matters relating to the agreement between the parties is a matter of contract between them.   

Both firms contact the Law Society (firms@lawsociety.ie) and advise the Law Society of their plans. The Law Society responds to both parties with its requirements.    

Requirements

To achieve the desired outcomes, the partnership practice NOP Solicitors LLP must cease.    

Cessation requirements – to be confirmed/completed by one of the partners of NOP Solicitors LLP (Mr GL or Mr SS)

  1. Confirm the date of the firm’s cessation. â¶Ä¯&²Ô²ú²õ±è;
  2. Confirm that you have contacted all clients for whom your firm is currently dealing with live/active matters and notified them of your firm’s cessation. Clients should be provided the opportunity to nominate a new solicitor to take over their live/active file or take possession of their file. Clients should be informed that if they do not do so, their file will transfer to ABC Solicitors LLP who will be dealing with same. Note, clients may nominate Mr SS to continue with their matter in his role as a partner with ABC Solicitors LLP. â¶Ä¯&²Ô²ú²õ±è;
  3. Confirm that you have contacted all clients for whom your firm holds Wills, Title documents or Enduring Powers of Attorney and notified them of your firm’s cessation. Clients should be provided the opportunity to nominate a new solicitor to take possession of their Will, Title documents or Enduring Power of Attorney or take possession of their documentation. Clients should be informed that if they do not do so, their documentation will transfer to ABC Solicitors LLP. â¶Ä¯&²Ô²ú²õ±è;
  4. Confirm that all closed files held by your firm will transfer to ABC Solicitors LLP who will provide access to same if requested. â¶Ä¯&²Ô²ú²õ±è;
  5. Confirm that all client monies from your firm that did not transfer to the nominated solicitors of clients along with their live/active file, are transferring to the firm ABC Solicitors LLP. â¶Ä¯&²Ô²ú²õ±è;
  6. File a closing accountant’s report to the date your existing partnership 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;
  7. As ABC Solicitors LLP is not a succeeding practice to your firm, you must 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). 
    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.     

Requirements for ABC Solicitors LLP - to be confirmed/completed by one of the partners of the firm (Mr RD, Mr PN, Ms JA or Mr SS)

  1. Confirm that live/active files and closed files from the firm NOP Solicitors LLP transferred to your firm ABC Solicitors LLP.  
  2. Confirm that client monies relating to live/active files from NOP Solicitors LLP transferred to your firm ABC Solicitors LLP.    
  3. Confirm that your firm is not a succeeding practice to the firm NOP Solicitors LLP and will not hold itself out as a succeeding practice by whatever means this may occur.    
  4. Forward a copy of your headed notepaper and ensure it is in accordance with the provisions of . â¶Ä¯&²Ô²ú²õ±è;
  5. Provide the personal firm email address of Mr SS with your firm (e.g. SS-Solicitor@NOPSols.ie). â¶Ä¯â¶Ä¯&²Ô²ú²õ±è;

Once in receipt of the required confirmations and documentation, the Law Society will proceed to cease the partnership practice NOP Solicitors LLP and update the Law Society’s records to reflect that Mr GL has retired from practice and Mr SS has joined the firm ABC Solicitors LLP as a partner.     

Note

The partners of the practice NOP Solicitors LLP have a responsibility to contact the Legal Services Regulatory Authority () and advise them that the authorised firm is ceasing. The partners of the practice ABC Solicitors LLP have a responsibility to contact the Legal Services Regulatory Authority and advise them of a change of partners in the LLP.