MBE Rules · Professional Responsibility
Sale of a Law Practice
Cal. Rule 1.17
The rule
A practice may be sold if sold entire (or an entire area), written notice reaches clients with a 90-day deemed-consent window, fees do not increase because of the sale, and confidentiality is preserved during due diligence.
In plain English
A lawyer can sell their entire law practice or a specific area of it, but they must notify clients in writing. Clients have 90 days to respond, and their fees cannot increase due to the sale, while confidentiality must be maintained throughout the process.
Worked example
Attorney Smith decides to sell her family law practice to Attorney Jones. She sends written notice to all her clients, informing them of the sale and their right to respond within 90 days. During this period, none of her clients' fees increase, and both attorneys ensure that all client information remains confidential. After 90 days, all clients who did not respond are deemed to have consented to the sale.
Memory hook
Sell the whole practice, notify clients, and keep fees and secrets safe!
The trap
Exams may present scenarios where students overlook the requirement for written notice or the 90-day consent window, leading to incorrect conclusions about the validity of the sale.
How examiners test it
Questions often test the nuances of client notification and the implications of fee increases, so watch for details about client responses and confidentiality.
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More Professional Responsibility rules
- Duty of Confidentiality · Cal. Bus. & Prof. Code § 6068(e); Rule 1.6
- Client Trust Account — IOLTA · Cal. Rules of Prof. Conduct 1.15
- Duty to Report Misconduct · Cal. Rules of Prof. Conduct 8.3
- Unconscionable Fees · Cal. Rule 1.5
- Fee Division Among Lawyers · Cal. Rule 1.5.1
- Compensation from Third Parties · Cal. Rule 1.8.6