When a licensee is suddenly or unexpectedly unable to practise law or provide legal services, clients with active matters may have their legal interests jeopardized. Court appearances may be missed, real estate deals may fail to close, immigration documents may not be filed and trust funds may be inaccessible, which may hold up pending matters.
In instances where a licensee ceases to practise law or provide legal services without appropriate arrangements to wind-up their business, the Law Society’s Trustee Services department steps in to protect, preserve and appropriately distribute client trust monies and property, such as client files, testamentary documents, or corporate minute books – this occurs most often among lawyers who practise as sole practitioners and often happens weeks after the licensee has stopped working.
Having a client contingency plan demonstrates good business management and serves the public interest as well as the licensee’s interest as it preserves the value of the practice and the reputation of the practice or licensee.
A client contingency plan may also reduce stress on licensees and ensure that their family members are not burdened with having to wind-up their professional business at a very difficult time.