Volume 20, Number 5 July/August 2003
HOW TO "PARTNER" WITH OTHER LAWYERS
By Joseph A. DeWoskin
After almost nine years on active duty with the U.S. Army
Judge Advocate General's Corps, I found myself at a crossroads in
my legal career. Opting to take a road not often traveled by the
friends I had made in the military, I decided to leave active
military service and work at a law firm, enjoying all the
feelings of job safety and financial protection that come with a
big firm.
Of course I flooded the local area with résumés,
targeting all types of firms. I interviewed with some, was
offered employment by some, and then, as I was mulling over what
to do, a friend of mine presented me with an interesting
opportunity: "Come and open your own practice in our office. If
you're willing and able to take a chance, it will be the best
opportunity to practice law you could ever have."
The best opportunity I could ever have? I had to find out more.
"Well," my friend said, "it's an office-share situation. We're
all partners, but not in the traditional sense of the word. We're
solo practitioners who run our own practices-a few have an
associate-but we have the comfort and security of other attorneys
to share expenses, discuss cases, and refer cases outside our
practice areas."
The primary question for me was whether I could afford to take
this chance and open my own law practice. Looking back, the
question really should have been how could I not afford such an
autonomous yet supportive opportunity. My biggest problem at
first was explaining to people how I am a solo practitioner but
work at a law firm, although the concept of sharing my office
with other attorneys is pretty simple to grasp. Being a "partner"
by office sharing is a combination of the best of being a solo
and being in a law firm. A few years ago, an acquaintance of mine
decided to open his own law practice as a solo; within a year he
decided the sense of isolation was not worth the advantage of
being on his own. He also struggled to find new clients and to
cover the various areas of law his cases encompassed. He missed
human contact and mentoring.
Basic Considerations
Before entering an office-sharing relationship, review the
groundwork so you're certain about what you're getting
into.
Structure. How is the business legally
structured? Are the attorneys separate entities (Law Office of
Joseph A. DeWoskin, Law Office of John Smith), or do they present
themselves as a firm (DeWoskin, Smith & Jones, A Partnership
Including Professional Corporations). This affects legal
liability and potential ethical issues and determines what should
be covered in the lease agreement. At my office we are separate
but present ourselves to the public as a firm. (For a discussion
of the liability and ethical issues created by this arrangement,
see the article "Ethics Concerns in Shared Office Space," page
40.)
Written agreement. This may be made with either
the primary "partner" or with the other attorneys in the suite.
(Covering everything about the agreement could result in an
entire article; here we'll concentrate on general items to cover
in the setup agreement. Also, be sure to verify that the
agreement does not violate state ethical rules.)
One of the most essential facts to cover is what is included in
rent/overhead: a receptionist who answers a central phone line
and greets clients, local and long-distance telephone service,
fax machine, basic office supplies (pens, paper, letterhead, file
folders, Post-its, postage), Internet access, online legal
research, legal malpractice insurance, and so on. These items can
be tailored to meet the needs of your specific group.
Issues that arise in a "true partnership"-about profit sharing,
for example-are not a factor in office sharing; there is no
profit sharing with attorneys who do not participate in your
case. If you do enter into a traditional partnership, the
agreement must make very clear who is responsible for making
decisions and addressing other issues that may arise.
My agreement provides a receptionist, firm letterhead, office
supplies, a copy machine, a fax, and metered postage for my
use.
Benefits
Attorneys in my office concentrate on different areas of the law,
with only some overlap, which allows us to "partner" with one
another on cases we otherwise might not take, or to learn a new
area of law with a more experienced mentor/attorney. "Partnering"
also provides both formal and informal opportunities to
brainstorm with the other attorneys in the office. And, unlike
the reality in large firms, a less experienced attorney can
easily find a mentor to answer questions as they arise.
Being your own boss allows you a type of flexibility that a
structured law firm environment does not provide. You can set
your own hours. You can choose the cases you want to take. Most
of all, you are responsible only to yourself-and your clients-for
your actions and decisions.
Your "partners" also have an interest in your success, which
reflects on their prosperity, ensures that the "partnership"
remains in effect, and guarantees no empty offices and a constant
stream of clients coming through the doors. Finding clients when
partnering with other attorneys is easier than trying to obtain
clients on your own; you have a ready-made referral network, and
cold calls to the office will be referred as well.
Another benefit is fee splitting with other attorneys. If your
"partnership" is like mine and presents itself as a law firm, you
don't need to address ethical concerns about fee-splitting
arrangements when other attorneys work on a case. (Nevertheless,
check your state's ethical rules to confirm you're not in
violation.)
Potential Trouble Spots
Although I'm a major advocate of the benefits of office-share
arrangements, every silver lining has a cloud, and anticipating
potential difficulties is a good idea. Here are a few of the more
common quagmires:
-Too many attorneys practicing in the same area of law can affect
the inherent referral potential of office sharing.
-Lawyers have an ethical duty to inform clients who is part of
the law firm and who will be working on the client's case. In an
office-sharing partnership, clients also must be informed that
the attorneys in the office are not part of your practice and
will have no knowledge of their case. As extra insurance, my
client agreement clearly states that I am responsible for the
client's case, that I "office share" with the law firm, and that
I am authorized to retain additional counsel.
-Client conflicts, although addressed by individual state ethical
rules, may arise for lawyers who "partner" in an office share. A
thorough, workable conflict system must be implemented to protect
all parties. Review your state ethics rules and other guidelines
that address this issue.
-A system to address potential legal malpractice claims and bar
complaints should be in place. Discuss this issue with your
malpractice insurer for guidance on how to structure these
concerns.
-Additional possible hot spots-such as whether or not you may sue
a client to recover fees-should be resolved as they come up if
not covered in the original agreement.
The biggest area of potential conflict-in a category all its
own-is cash flow and meeting monthly overhead, and how these are
affected by keeping and retaining clients. It is up to you to
make sure you can meet your overhead and that you take enough
cases to remain in a positive cash flow. Developing a good
business plan, plugging into referral networks (bar associations,
local military installation referral lists and other referral
lists), and "partnering" with other attorneys in an office-share
will go a long way to ensure that you have a successful practice.
"Partnering" through an office-share is like a marriage: Issues
need to be addressed as they arise to ensure a successful
long-term relationship.
Joseph A. DeWoskin practices law in Kansas City,
Missouri (he is licensed in both Missouri and Kansas). He can be
reached at j.dewoskin@cwbbh.com.
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