Office Sharing
Excerpeted with permission from an article in Malpractice Alert! a publication of the Ohio Bar Liability Insurance Company

Office sharing arrangements are common among attorneys who are practicing on their own or in small groups. In an office sharing arrangement, an individual case may be handled by one of the attorneys, or there may be an association, a referral, or an actual partnership on a particular case.

An office sharing arrangement has many benefits. It allows attorneys to share overhead costs such as rent, equipment, library, secretarial, clerical and associate costs. The proximity of other attorneys also has the advantage of allowing for the sharing of ideas, expertise, abilities and cases.

The office sharing arrangement may convey the image of a law firm. A problem, however, occurs when the image of the law firm gives the appearance of a partnership, or some other formal relationship among attorneys.

Attorneys who have very carefully avoided entering into an actual parntership because they do not wish to be vicariously liable for another attorney's mistakes are nevertheless finding themselves joined in legal malpractice lawsuits. These attorneys are being named as defendants because the injured client of one of the attorneys in the office simply alleges a "partnership by estoppel," or, at times, that a "de facto" partnership exists. The elements of a partnership by estoppel are similar to the agency principles of apparent authority and are as follows:

  1. The principal has consented to the exercise of authority by the agent, and the agent is acting within the scope of that authority
  2. The client or third party reasonably believes that the agent had the authority, and
  3. Relied on the appearances of authority to his/her detriment.

A "de facto" partnership or partnership by estoppel will depend upon the facts of each case and the appearances conveyed to the public. If the office sharing arrangement is not to be confused with a partnership, all of the attorneys involved in an office sharing arrangement should take care to avoid the appearance of a partnership. If these safeguards are not taken, it is all too easy to become the target of the injured client who is unable to collect damages from the attorney who rendered the allegedly negligent services.

How to avoid legal liability in office sharing arrangements:

  • Post signs which correctly identify the office and the individual attorneys located therein.
  • Use individual letterhead.
  • Answer the telephone appropriately.
  • Formalize agreements about office sharing arrangements.
  • Document divisions of responsibility when several attorneys are working for one client.
  • Use care in conversations in front of the client.
  • Restrict access to client files.

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