Client Contingency Planning: Templates & Guidance

Lawyers and paralegals in private practice must develop and maintain a client contingency plan to ensure the seamless preservation, transition, or winding down of their professional business in the event of unexpected circumstances. This plan must comply with the requirements outlined in By-law 7.1 and designate one or more licensees to act as plan administrators. At a minimum, the plan should include the following responsibilities for the administrator:

Key Responsibilities of the Plan Administrator

1. Notification of Relevant Parties:
   The administrator must promptly notify the Law Society’s Trustee Services Department and the licensee’s professional liability insurer upon learning that the licensee is unable to practice due to illness, disability, death, or any other sudden absence, whether temporary or permanent.                                                                                                                                                         
2. Communication with Clients:
   The administrator must inform all clients that the licensee can no longer continue their retainers. They are responsible for arranging:

• (i) The transfer of clients’ files and property to another licensee, or
• (ii) The return of files and property directly to the clients.

3. Access to Trust Accounts:
   If applicable, the administrator must make reasonable efforts to access the licensee’s trust accounts to facilitate the return or transfer of trust funds as per client instructions.

Need Help with Your Contingency Plan?

If you need assistance in drafting a client contingency plan or require guidance as a plan administrator, contact the regulatory body for lawyers and paralegals for expert support.

Best Practice Recommendations

While By-law 7.1 outlines the basic framework, a more comprehensive plan is strongly recommended to ensure a smooth transition for your practice and enhanced client protection. Consider additional options such as:

• Authorizing the administrator to temporarily manage your practice,
• Transitioning the practice to an associate, or
• Selling the practice to another licensee.

For detailed guidance, refer to your regulator’s Succession Planning Resource for practical advice and actionable insights visit: Client Contingency Planning Resources & Templates