§ Rule 4-1.17 Sale of Law Practice

Codes > Florida Statutes > Rules Regulating > Chapter 4 : 4-1 Client-Lawyer > Rule 4-1.17

Rule 4-1.17. Sale of Law Practice

    A lawyer or a law firm may sell or purchase a law practice, or an area of practice, including good will, provided that:

    (a) Sale of Practice or Area of Practice as an Entirety. The entire practice, or the entire area of practice, is sold to 1 or more lawyers or law firms authorized to practice law in Florida.

    (b) Notice to Clients. Written notice is served by certified mail, return receipt requested, upon each of the seller's clients of:

        (1) the proposed sale;

        (2) the client's right to retain other counsel; and

        (3) the fact that the client's consent to the substitution of counsel will be presumed if the client does not object within 30 days after being served with notice.

    (c) Court Approval Required. If a representation involves pending litigation, there shall be no substitution of counsel or termination of representation unless authorized by the court. The seller may disclose, in camera, to the court information relating to the representation only to the extent necessary to obtain an order authorizing the substitution of counsel or termination of representation.

    (d) Client Objections. If a client objects to the proposed substitution of counsel, the seller shall comply with the requirements of rule 4-1.16(d).

    (e) Consummation of Sale. A sale of a law practice shall not be consummated until:

        (1) with respect to clients of the seller who were served with written notice of the proposed sale, the 30-day period referred to in subdivision (b)(3) has expired or all such clients have consented to the substitution of counsel or termination of representation; and

        (2) court orders have been entered authorizing substitution of counsel for all clients who could not be served with written notice of the proposed sale and whose representations involve pending litigation; provided, in the event the court fails to grant a substitution of counsel in a matter involving pending litigation, that matter shall not be included in the sale and the sale otherwise shall be unaffected. Further, the matters not involving pending litigation of any client who cannot be served with written notice of the proposed sale shall not be included in the sale and the sale otherwise shall be unaffected.

    (f) Existing Fee Contracts Controlling. The purchaser shall honor the fee agreements that were entered into between the seller and the seller's clients. The fees charged clients shall not be increased by reason of the sale.