Of Counsel Agreement Pennsylvania

Of Counsel Agreement in Pennsylvania: What You Need to Know

When it comes to practicing law, there are various ways to structure a law firm. One common approach is the “of counsel” relationship. This is an agreement between attorneys or law firms where one party provides legal services to the other, typically on a part-time or periodic basis.

In Pennsylvania, an of counsel relationship can benefit both the attorney and law firm involved. However, it’s important to understand the legal requirements and best practices for these agreements.

Legal Requirements for an Of Counsel Agreement in Pennsylvania

In Pennsylvania, the Rules of Professional Conduct govern attorney conduct, including the formation of of counsel relationships. The most relevant rules include Rule 1.0 (Terminology), Rule 5.1 (Responsibilities of Partners, Managers, and Supervisory Lawyers), and Rule 5.3 (Responsibilities Regarding Nonlawyer Assistance).

First and foremost, an of counsel relationship must be based on a written agreement that clearly outlines the scope of the relationship. The agreement should also address the ethical and professional responsibilities of each party, as well as the allocation of fees and expenses.

Additionally, under Rule 5.1, partners in a law firm are responsible for ensuring that all lawyers in the firm comply with ethical rules. This means that if a lawyer is engaged in an of counsel relationship, the law firm must ensure that the relationship does not compromise the lawyer’s independence, loyalty, or obligations to clients.

Finally, Rule 5.3 requires lawyers to supervise non-lawyer assistants involved in the provision of legal services. This means that if a law firm hires a non-lawyer assistant to work with an of counsel attorney, the law firm is responsible for supervising the assistant’s work and ensuring that the assistant does not engage in activities that violate ethical rules.

Benefits of an Of Counsel Relationship in Pennsylvania

There are various benefits to engaging in an of counsel relationship in Pennsylvania. For one, it can allow an attorney to continue practicing law while easing some of the demands of running a law firm. An of counsel attorney may be retired or semi-retired, or simply looking for a flexible arrangement that allows them to balance other obligations.

Another advantage is the potential for cross-referral of clients between firms. If one firm has a diverse set of clients, but lacks expertise in a particular area of law, they may refer those clients to an of counsel attorney with relevant expertise. This can help strengthen both firms’ client bases and enhance their reputation within the legal community.

Lastly, an of counsel relationship can be a cost-effective way for a law firm to expand its practice without making a long-term commitment. Instead of hiring a full-time attorney, a law firm can engage an of counsel attorney for a specific project or period of time, and then re-evaluate the relationship as needed.

Conclusion

An of counsel relationship can be a mutually beneficial arrangement for attorneys and law firms in Pennsylvania. However, it’s important to ensure that the relationship complies with ethical rules and is based on a written agreement that clearly outlines the scope of the relationship. By doing so, attorneys and law firms can enjoy the benefits of collaborating while avoiding any risks or complications that may arise from a poorly structured of counsel relationship.