Retiring from the practice of law and selling one’s law firm to a third party pursuant to Rule 1.17 of the New York Rules of Professional Conduct (Rule 1.17) can be a complex process fraught with legal and economic difficulties.

In May, the New York State Bar Association Committee on Professional Ethics issued Opinion 1168 (May 13, 2019) which revisited and addressed some important issues related to the sale of a law firm. In short, the opinion found that a lawyer affiliated with a firm may purchase a firm consistent with Rule 1.17 and may use the name of the seller’s firm provided that doing so is not misleading. In addition, Opinion 1168 clarified some confusion concerning the application of the term “retired” as used in Court of Appeals rules and in Rule 1.17, and, as discussed below, concluded that, for purposes of a sale of a law firm, the term “retired” is that used in Rule 1.17.