Preparing for the unexpected in law practice is no longer a matter of personal preference; it is now a regulatory requirement for lawyers and paralegals in private practice in Ontario.
As of January 1, 2025, licensees must develop and maintain a client contingency plan to ensure the protection and continuity of their clients’ legal interests should the professional be unable to practise, either temporarily or permanently, due to illness, disability, death, or another sudden absence.[1] This plan must comply with Law Society of Ontario By-Law 7.1, which outlines detailed obligations and responsibilities regarding how lawyers and paralegals should preserve, carry on, or wind up their professional business if an unexpected event occurs.[2]
While licensees practicing as partners or associates in a firm are not required to have an individual contingency plan, they must confirm that their firm has a compliant plan, one that provides for a successor licensee to continue the practice.
The core of the new requirement is the appointment of an administrator, who must be a licensee authorized to take all necessary steps to safeguard clients’ matters.[3] Under By-Law 7.1, once the appointment is activated the administrator is obligated to notify both the Law Society’s Trustee Services Department and the appointing licensee’s professional liability insurer.[4] The administrator must also reach out to existing clients to inform them that their lawyer or paralegal can no longer continue with their matters and arrange for the transfer of files or the return of those files to the clients themselves.[5] In addition, the administrator must, if needed, access the appointing licensee’s trust accounts in order to transfer or return trust funds in accordance with client instructions.[6]
Licensees who are executors, administrators, trustees or attorneys for property, have the added responsibility to ensure that their administrator will also be able to access the property belonging to the estate, trust or person for whom the appointing licensee was acting, as the case may be, including those trust accounts as well.
Lawyers and paralegals must report compliance with these requirements on their Annual Report, beginning with the 2025 reporting cycle.[7] This means that by March 31, 2026, licensees will need to confirm that they have a plan in place meeting the minimum requirements set out in the By-Law and that this plan has been reviewed and kept current.[8] Although the By-Law prescribes baseline requirements, the Law Society recommends creating a more comprehensive succession plan, which might involve identifying a licensee to continue the practice or planning a transition or sale of the practice. [9]A more fulsome approach can better protect both the lawyer and their clients should unanticipated circumstances arise.[10]
Developing a robust contingency plan involves more than simply designating an administrator and storing a list of client files. The Law Society’s By-Law 7.1 requires that the plan include details on the location and means of obtaining possession or control of property or documents related to clients’ legal matters, as well as information about trust accounts and accounting records.[11] Reviewing and updating this information annually ensures that it remains accurate and usable if and when the plan is activated.[12] The Law Society has provided resources to help lawyers meet these requirements. It is important to tailor the plan to the specific nature of each practice.
As lawyers and paralegals develop their plan, it is a good time to consider updating personal estate planning documents. The Law Society has suggested that licensees may wish to include reference to their appointed administrator in their Wills and Powers of Attorney, ensuring that any authorizations necessary to access client property or trust accounts are legally recognized in all relevant documents.[13] This extra step can clarify the administrator’s authority and reduce potential confusion for your loved ones and your clients if an unexpected event prevents you from continuing to practise.
For a condensed, practical outline to kick-start your contingency plan, the Law Society has created infographics that describe 6 Steps to Developing a Client Contingency Plan among other resources and the Canadian Bar Association has created materials and CPD on the topic. Help is also available through LSO Connects.
Lawyers in private practice should start thinking about these requirements well before the March 31, 2026 date. Early preparation will allow time to become familiar with By-Law 7.1 and gather the information that will be needed if someone else must suddenly step into their role. It is recommended that licencees consult with colleagues, including estate planning lawyers, for advice on how to integrate their contingency plan with their personal Will and Powers of Attorney.[14] With a carefully organized plan, lawyers will have peace of mind that their clients’ interests are protected and their own professional responsibilities are met.
[1] Law Society of Ontario, Client Contingency Planning, online: Law Society of Ontario.
[2] Law Society of Ontario, By-Law 7.1 [Operational Obligations and Responsibilities], online: Law Society of Ontario
[3] Ibid.
[4] Ibid.
[5] Supra, note 1, Client Contingency Planning.
[6] Ibid.
[7] Ibid.
[8] Ibid.
[9] Ibid.
[10] Ibid.
[11] Supra, note 2, By-Law 7.1 [Operational Obligations and Responsibilities].
[12] Ibid.
[13] Supra note 1, Client Contingency Planning.
[14] Supra note 1, Client Contingency Planning.
The author would like to thank Harinder Singh, Student-at-Law, for his assistance with this blog.