Opening a New Law Firm

Space-sharing arrangements are a good alternative to traditional office space, but they come with unique risks. If you are considering operating out of a space-sharing arrangement, either with lawyers, non-lawyers or a mix of the two, make sure you consider the following issues:

• Your space must be lockable or your files placed in lockable filing cabinets that are in fact locked when neither you nor your assistant are present, including at night, on weekends or for periods of time during the day.
  
  
• Files must not be left in open areas where they may be perused. Similar security concerns apply to file storage.
  
  
• If you share a photocopier, scanner or fax machine, you must be very careful not to leave documents on the machine. Also determine whether the copier machine stores printed, scanned or faxed documents; if so, you will need to delete saved documents so that others who use the device cannot access them. Purchasing your own all-in-one copier, scanner and fax machine for your exclusive use is a better option than a shared device. Alternatively, consider a service that directs all faxes to e-mail.
  
  
• In addition to your physical work, you need to ensure your digital work is secured. If you are working from a desktop device, or you leave your laptop at work, make sure your office door is locked when you are out of the office. Alternately, consider taking your laptop home with you at the end of the day. Also, make sure that your electronic devices are password protected.
  
  
• If you are on a network, make sure your area of the network is secure with passwords that are not available to persons other than you and your staff.
  
  
• You must impress the importance of confidentiality on shared receptionists, bookkeepers and other office services staff. Even if staff work with some non-lawyers, when they are answering your phone, greeting your clients or doing your bookkeeping, they are subject to the same standards as if they were working in a law office. You have an ethical obligation to educate them about confidentiality and to supervise their work. Of particular concern: they must not disclose any information about your clients' affairs with anyone else in the office, including the person who pays their salary.
  
  
• The supreme importance of confidentiality and the duties of shared staff should be discussed in detail with the proprietor of the space and negotiated into your written agreement.
  
  
• Instruct the receptionist on the importance of not disclosing the names of callers to your law office (by, for example, announcing the names of callers in the presence of others working in the office) and make arrangements that ensure that your phone messages are not open to disclosure.
  
  
• Make sure your mail is delivered unopened to you or your support staff.
  
  
• Be careful not to unwittingly back into an unauthorized practice arrangement. You may carry on your separate practice of law in the same premises as another business, but you cannot create a single business entity that has non-lawyers as partners. Make it clear to clients who are referred internally that your law firm is independent of the referring business. You do not want to end up being sued for someone else's malfeasance because your businesses were so closely aligned that the client thought you were partners.
  
  
• Since you may be the only lawyer in the suite, there will be a risk that you will become isolated. Make sure you get out and meet with other lawyers by having coffee at the court, attending CBA section lunches, LESA seminars and other networking opportunities.
  
  
• Before you go into an executive suite, consider whether your practice is compatible with those of the other businesses in the suite. Depending on your business plan, you may find marketing opportunities in an office suite, or you may find yourself in conflict with the other tenants.
  
  
• Storage is also often an issue in these arrangements. Law practices can generate paper, at times inordinate amounts of paper, and they need secure, convenient storage. Alternatively, consider a paperless office.

See Business Issues in Space-Sharing Arrangements with Lawyers Checklist for more information on identifying and issues that can arise in space-sharing arrangements.