Backup Attorney/Interim Administrator Essential for Private Practice Attorneys
About once a quarter we get a call from an incapacitated attorney’s staff. The last call that I took was from a paralegal stating that the attorney had been in the hospital for a month and will be out for at least a couple of more months. This is a terrible situation for all involved. The only reason that the paralegal called us was we were following up for the attorney malpractice renewal application. She was looking for advice on what to do next.
Solo attorneys need to remember that they are running a small business. Employees and bills need to be paid, and deadlines met. The mundane reporting that businesses need to do to meet local, state, and federal requirements continue regardless. In addition, they have dependents and clients that that depend on them.
An attorney’s obligations to clients and the courts are not terminated due to retirement, incapacity or even death. Not all issues to an attorney’s incapacity are related to old age. We live in an unpredictable world. We receive calls from spouses and children attempting to determine if we provide insurance coverage for their attorney. Attorneys need plans in place to meet unpredictable events before they happen. This begins with having a backup attorney designated to cover.
State Bars are starting to step in to formalize this requirement. As an example the Michigan State Supreme Court introduced practice regulations (Rule 21) to formalize backup attorney/interim administrator requirements.
“Effective September 1, 2023, the Michigan Supreme Court introduced a significant update to the State Bar of Michigan (SBM) practice regulations. This amendment mandates the appointment of an Interim Administrator (IA) for all private practice members. These individuals have two options: either select another SBM member to act as their IA for their private practice or enroll in the SBM’s IA program for an annual fee of $60. Each IA is obligated to procure and maintain professional liability insurance covering their IA responsibilities.”
Find more information on the Michigan backup attorney/interim administrator requirement in “Your Guide to Succession Planning”
As the boomer generation continues to get older, succession-planning becomes even more important. Failure to plan for a successful transitioning of open matters, including a process for designating a backup attorney/interim administrator to address deadlines and court appearances, can lead to malpractice claims.
The last thing in the world that the conscientious attorney wants is having staff and dependents struggling to deal with not only the loss of the attorney but suddenly thrust into the business of the law firm, clients and court obligations without preparation or a plan. Every attorney has an obligation not to leave their clients in a worse position than when they found them.