In The News . . . ABA Formal Opinion States Firms Cannot Bill For Time In Transitioning Work In The Sale Of A Law Practice

 

Formal Opinion 468 Is The Opinion In This Area.

     On October 8, 2014, the American Bar Association issued Formal Opinion 468, entitled “Facilitating the Sale of a Law Practice.” Among other things, it states that firms cannot bill for transitioning work in a sale of the law practice. Although this cannot be done post facto, there is language in the Formal Opinion which should guide lawyers on how to “recapture” such efforts: “The compensation, if any, to the selling lawyer or law firm for time spent on transitioning matters should be a matter of negotiation between the seller and the buyer in determining the consideration for the sale.”

     Here is a link to ABA Formal Opinion 468.

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