Sharing Offices?

Don't share malpractice risk

Sharing office space has some advantages - and drawbacks. Learn how you can avoid the headache of becoming liable for your office mate's malpractice.

   If you share office space with another attorney, be aware that you share more than rent and a fax line. You may share exposure to malpractice claims, particularly if clients perceive you and your office mate to be partners.  Sharing a lease, office equipment, law library and other overhead expenses with one or more attorneys makes economic sense. Office mates also can provide the camaraderie of a law firm without the commitments.

   The risk in office sharing comes when a dissatisfied client files suit against your colleague, and you - either by real or perceived association - become vicariously liable.
Communicate your independent status upfront.

   How can you and your office mates communicate to clients that you are independent attorneys? Here are some suggestions.
Post separate name plates.

   The first and most obvious way to establish yourselves as independent law offices is to list your names separately on the door.
Use separate printed materials.

   Separate letterhead, business cards, invoices and brochures, for each lawyer are effective and relatively inexpensive ways to establish your independent identity.
Install separate phone lines.

   A client is reminded of your independent status every time he or she dials your telephone number and hears "Office of Attorney Mary Smith" rather than "Smith, Jones & Mason" or simply "law offices."

   "We each have separate telephone lines and separate secretaries answering our calls," says Jim Collis, a Milwaukee sole practitioner who shares office space with two other attorneys. "Everything appears to the public as separate entities." 
Tell your clients up front.

   "I explain to new clients in painstaking detail the difference between a partnership and office sharing," says Peter Stanford, an office-sharing attorney concentrating in personal injury, professional malpractice and worker's compensation.

   Include a standard paragraph in your retainer letters to clients stating that you are not affiliated in any way nor are you responsible for the work performed by other attorneys in your suite.
Make referrals with care.

   If you refer legal work to the other attorneys in your office, you will want to make doubly sure that the client under stands your role and responsibilities.

   "When I refer clients to the attorney next door, I explain to them that he is not my partner and that I do not share in the profits of his work," says Stanford.

   Consider giving your clients the names of several attorneys - inside and outside of your office suite - or the phone number of a lawyer referral service when referring legal work. 
Behind-the-scenes protection.

   Beyond projecting an accurate image to your clients, you can take some behind-the-scenes action to protect yourself from vicarious liability.
Protect client confidentiality.

   When you share offices, you may need to take extra steps to protect client confidentiality. For example, both Stanford and Collis maintain separate client files inside their individual offices.  Be careful about conversations that can be overheard in your common reception area or conference rooms. Finally, shred all sensitive documents before recycling or disposing of them. 
Avoid conflicts of interest.

   You and your office mate should avoid representing opposing parties in a legal case. Consider adopting a conflict of interests system similar to those used in multi-lawyer firms.
Choose your office mates wisely.

   Unlike college roommates, the lawyers you share office space with won't move out at the end of the semester. "Get to know the person well before you get involved in an office-sharing arrangement," recommends Collis, who knew both of his office mates personally for several years before they set up shop together.

   "Your reputation can be tainted by your close proximity to a lawyer whose ethics and techniques are questionable." 
Make sure your office mates carry professional liability insurance.

   Everyone I share space with carries malpractice insurance. I don't want to get hung when someone else makes a mistake.

   If a de facto partnership is found, you could be held liable for your office mate's errors. Even if no partnership is found, if your office mate's insurance company provides a defense, there is less of a chance that the client will seek recovery from you. 
Be prepared for a lawsuit.

   Should you ever be called upon to prove your independent standing, be ready to support your case with evidence of separate bank accounts, trust accounts, tax returns and other documentation.

(This article was taken from a newsletter of Wisconsin Lawyers Mutual Insurance Company and is reprinted with permission.)

HANDLING STRESS
1. Don't procrastinate. Have a "plan of action."
2. Learn what causes you stress and then change your behavior.
3. Work on only one thing at a time.
4. Only fight for the things that are really worth it your real priorities.
5. Reject perfectionism