The requirement for a law firm organized as a limited liability partnership to maintain malpractice insurance does not extend to the period when a firm is winding up operations and has ceased to provide legal services, the Supreme Court has ruled.
The plain language of Rule 1:21-1C ties the insurance mandate to the performance of professional services, and that term doesn’t encompass the administrative duties related to a windup, the court ruled in Mortgage Grader v. Ward & Olivo. Affirming an Appellate Division order, the court said a motion judge erred by converting the Summit firm from an LLP to a general partnership for failing to carry malpractice insurance while winding up operations.
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