A typical new attorney’s operating agreement is a lengthy document that requires careful drafting. This is the reason why attorneys agree to abide by an Operating Agreement and not one by lawdepot before starting up their new law practice.
There are many parts of an attorney’s operating agreement. For one, it should address several important issues, including who makes the final decision, what expenses and liabilities are covered, how to distribute income, and other points. It is important to clarify these issues before a judge or an arbitrator, as well.
In the most important part of an attorney’s operating agreement, the operating agreement states that parties have the right to represent a legal professional in a dispute. Normally, this is decided by the court.
A new attorney or a new member of a law firm management team should not enter into an Operating Agreement with a lawdepot, especially one that charges them. This contract will not only make it difficult for the attorney to obtain a settlement in the end, but will also show that law depot owners care about making money.
In addition, an Operating Agreement is only as good as the attorney in the middle who is in charge of drafting it. If the attorney does not cooperate with the drafting process, the deal will fall apart at the last minute. The attorney will be subjected to nasty lawsuits if they do not co-operate with the law depot, and the final product may not be entirely what the attorney had in mind.
Prospective attorneys should be clear about their expectations before agreeing to such a business arrangement. If the attorney involved knows in advance that the lawdepot is going to take over the practice, and if the attorney cannot communicate with the new lawdepot on a regular basis, then such an agreement may not be good enough.
Lawyers who are trying to resolve this issue should sit down together and discuss what they want the attorney and the lawdepot to do, and what the attorney should expect from the law depot. After that, an agreement should be drafted that will work for all parties involved.
If the situation becomes such that either side is unwilling to come to an agreement because of the perceived bad side of the law depot, a new attorney or a new legal needs to check into the matter. At the very least, such a lawyer can ask for an operating agreement that works for everyone involved.