A significant part of our practice as solicitors involves advising other professional firms on mergers and partnership issues.  Successor practice issues under the Law Society’s Minimum Terms and Conditions of insurance for solicitors in England and Wales represent about a sixth of our practice – advising insurers, brokers and firms and resolving disputes. 

Our Top 100 Professional Indemnity Survey 2007 and previous surveys have shown that checks on lateral hire partners have increased over the past four years - reflecting a raised awareness of the insurance, risk management and reputational issues which can arise - but even large firms can get caught out for failure to check on successor practice liability and have found themselves almost uninsurable in consequence.  Click here for the full survey results or email us to request a copy.  Further information and resources on the rules appear below.

We provide solutions to many successor practice issues and have helped several firms avoid taking on such liabilities.  We may even be able to assist in cases where firms are proposing to acquire the practice of a sole practitioner.  Prevention is better than cure, but we also help firms who discover problems after the acquisition of a practice.

We advise on both strategic planning and claims-related problems with a Plain English, problem-solving approach.  We also provide training for insurers and brokers - including a 2 hour workshop - contact Frank Maher for further information.

Resources

• Short Guide to the Minimum Terms and Conditions 2007, written by Frank Maher.  Priced £50+VAT.   Email us to purchase a copy.
  
  
• Introductory slide show  (revised 2006)
  
  
• Plain English Guide - request a free copy here
  
  
• Definition of ‘successor practice’ - see:
  - Clause 8.20 of the Minimum Terms 2005, page 46
  - Clause 8.2 of the Minimum Terms 2006 and 
    Minimum Terms 2007

• Solicitors Indemnity Insurance Rules 2008
  (in force 1 October 2008)

• Solicitors Indemnity Insurance Rules 2007

• Solicitors Indemnity Insurance Rules 2006
  
  
• The Law Society guidance - provides notes on indemnity insurance run off cover when setting up in practice.
  
  
• Indemnity Insurance Disclosure Guidelines - obligations under the Solicitors Indemnity Insurance Rules

Some of the issues are highlighted in the following articles by partner Frank Maher:  

Growing Pains  view
Insurance implications of mergers and lateral hires  (The Lawyer 26 Jun 2006)   

  The changing risks that spell dangers for brokers

  Secrets of Succession

Mergers can leave a sting in the tail; problems arising from successor practice provisions(Insurance Times, April 2006). 

  Hiring & Firing: how recruitment can damage your wealth
(Managing Partner magazine, November 2004).  The same article appeared in the Australian Law Practice Bulletin for December 2004-January 2005 with additional articles on law firm risk management - click here to download.

   Marry in Haste, Repent at Leisure
(Managing Partner magazine, December 2004).  The same article appears in the Australian Law Practice Bulletin for February 2005 with additional articles on law firm risk management - click here to download.

   Pass the Bomb - The Successor Practice Nightmare in Action
(Association of Partnership Practitioners newsletter, November 2004). 

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