Did you know that effective January 1, 2025, all private practice lawyers in Ontario must establish a client contingency plan?
The purpose of this Law Society of Ontario (LSO) requirement is to ensure client protection and continuity of service in the event of sudden inability to practice. This post covers the essential points you need to know:
Key Information
Who it Affects: This requirement applies to all private practice lawyers in Ontario, excluding in-house counsel, government, legal clinic lawyers, and those in the non-practising class.
Implementation Date: Mandatory as of January 1, 2025, with compliance reporting due by March 31, 2026.
Requirements for Sole Practitioners:
• Must confirm compliance with LSO minimum standards.
• Designate an “administrator” to manage practice matters in their absence.
• Annual review of the plan is required.
Requirements for Firm-Based Licensees:
• Firms must confirm they have a contingency plan in place to address situations where no members of the firm are able to continue practicing.
• The plan must meet the LSO’s minimum standards.
Compliance Requirements
To comply with the Law Society’s client contingency plan requirements, the plan must include:
Administrator Appointment: One (or more) licensee must be designated as your administrator to manage the transition or wind-up of your practice.
Notifications: The administrator must notify the Law Society’s Trustee Services and the professional liability insurer as soon as possible if you are no longer able to practice.
Client Communication: The administrator must inform clients, manage file and client property transfers to other licensees, or return to the client.
Trust Account Access: If applicable, the administrator should access trust accounts to transfer or return funds to clients.
Why Client Contingency Planning is Critical
A robust client contingency plan protects against critical risks, such as missed court appearances and failed transactions, that can arise from a lawyer’s sudden absence. Trustee Services steps in as a last resort but having a plan in place can prevent delays and protect clients’ interests. In the past, especially with solo practitioners, it has taken weeks before the Trustee Services would learn that the lawyer stopped practicing, and they often didn’t have the correct information needed or digital access to assist the clients. This is why contingency planning is especially important for solo lawyers.
Resources and Support
The LSO has provided several tools to help you with your compliance:
- Templates and Checklists: Includes a helpful and comprehensive client contingency plan template, guidelines for both licensees and administrators, and templates for client notifications.
- Continuing Professional Development (CPD): On-demand courses covering contingency planning will be coming soon from the LSO.
- Trustee Services Support: Available for consultation through LSO Connects.
For more information, visit the LSO’s Succession Planning resource page.
Conclusion
While having a contingency plan in place is an important way to protect your clients and practice, finding an administrator and setting up a contingency plan is a lot of work, especially for sole practitioners.
Have you set aside time to start working on your contingency plan yet? Need extra help to find that time? Reach out so we can match you with one of our pre-vetted freelance lawyers to assist your practice on an as-needed, when-needed basis.
This blog is for informational purposes only and does not constitute legal advice.
