Multistate Practices, Multirisk Liability
As a result of increased competition in the legal industry, coupled with rapidly developing technology, many law firms and attorneys have practices that reach beyond the borders of their physical locations.
September 25, 2017 at 10:41 AM
11 minute read
Regional, national and even global practices are no longer unusual. As a result of increased competition in the legal industry, coupled with rapidly developing technology, many law firms and attorneys have practices that reach beyond the borders of their physical locations. Perhaps more importantly, their clients are often located in multiple states or other countries.
Although practices that cross state lines are common, they can create some additional risks. Indeed, multistate practices may be more likely to receive claims for potential unauthorized practice of law or other claims under the tort and contract laws of multiple states. It can also be difficult to navigate sometimes-inconsistent ethics rules in various states.
One of the biggest risks for lawyers with multistate practices is that they could be subject to the jurisdiction of another state. In addition, the law practice (and the attorneys involved) could be forced to defend themselves in a location where they maintain no physical presence, subject to rules and laws regarding professionalism and malpractice that are new and different from those where the law practice operates.
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