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Successor - part of practice |
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Can a firm be a successor to part only of a practice? The simple answer
is ‘no’ because ‘succession’ is a concept that requires all of the ceased
firm to be subject to the transition. For instance, suppose a firm with
three offices ceases practice, and becomes three separate firms, each
of which operates from an office of the former firm, and each of which uses the same name as the former firm. Each of the new firms would be
a successor to the whole of the ceased firm.
Likewise, suppose a firm is a two-partner firm undertaking conveyancing
and PI work. It ceases, and one partner takes the PI work to another
local firm, whilst the other partner takes the conveyancing firm to a
different local firm. If both the firms they join hold themselves out as
successors to the old firm, then both will be successors to the whole of
that firm (and not just the specific area of work they took over). Thus, if
a claim arose out of the PI firm done by the old firm then both successor
firms’ insurers would have to respond. Source: Zurich@risk.
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January 2007 |
