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SCR 3.130(1.17) Sale of law practice

Baldwin's Kentucky Revised Statutes AnnotatedRules of the Supreme CourtEffective: August 15, 2022

Baldwin's Kentucky Revised Statutes Annotated
Rules of the Supreme Court
III Practice of Law (Refs & Annos)
Kentucky Rules of Professional Conduct
Effective: August 15, 2022
Rules of the Supreme Court (SCR) Rule 3.130, Rules of Prof. Conduct Rule 3.130(1.17)
SCR 3.130(1.17) Sale of law practice
Currentness
A lawyer or a law firm may sell or purchase a law practice, or a field of practice, including good will, if the following conditions are satisfied:
(a) The seller ceases to engage in:
(1) the private practice of law; or
(2) the field(s) of practice sold; or
(3) the practice of law in the geographic area in which the practice has been conducted, all as the seller and purchaser may agree;
(b) The entire practice, or the entire field of practice is sold to one or more lawyers or law firms;
(c) The seller gives written notice to each of the seller's clients 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 date the notice was sent.
(d) The fees charged clients shall not be increased by reason of the sale.
(e) If a client with active matters cannot be given notice, the file(s) of that client may be transferred to the purchaser only upon entry of an order by the circuit court in the county of the principal place of business of the seller. 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 the file. Notification of the entry of the order shall be sent to the Kentucky Bar Association.
(f) In the event the sale includes files that are closed matters, and the attorney has mailed notice to the client's last known address, 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 date the notice was sent.
(g) Upon the sale of a law practice, the seller shall make reasonable arrangements for the maintenance of client trust account records.

Credits

HISTORY: Amended by Order 2022-43, eff. 8-15-2022; prior amendment eff. 1-1-18 (Order 2017-18). Adopted by Order 2009-05, eff. 7-15-09
Note: Former Rules of Appellate Procedure (RAP) were amended and redesignated as Rules of the Supreme Court (SCR) by Order of the Supreme Court effective January 1, 1978. Prior Rules of the Court of Appeals (RCA) had been redesignated as Rules of Appellate Procedure effective March 12, 1976.
Sup. Ct. Rules, Rule 3.130, Rules of Prof. Conduct, Rule 3.130(1.17), KY ST S CT RULE 3.130, RPC Rule 3.130(1.17)
Current with amendments received through March 1, 2024. Some sections may be more current, see credits for details.
End of Document