Virtual Offices may Violate Ethics Rules

Recent technological advances have made it relatively easy for professionals to maintain a virtual office. A wireless connection may be all that is needed to practice, without the stress of lease payments, utilities, commuting expenses and other costs. Some attorneys have taken advantage of technology to maintain out-of-state offices in order to appeal to a larger client base. But, despite the various temptations to utilize a virtual office, there are serious risks of doing so.

Don’t tear up your office lease just yet. Even though practicing without an office is technologically possible, it may run afoul of ethical obligations. The Delaware Supreme Court recently slapped a lawyer with a two-year suspension for his failure to maintain a bona fide office in Delaware. In its written opinion, the court held that the attorney violated Delaware Supreme Court Rule 12 which requires that attorneys maintain an office within the state. According to the Court, the attorney worked primarily out of his home in Pennsylvania.

The Court held that the attorney violated the bona fide office rule despite using a Wilmington address with conference room space (that he rented as needed), and where the landlord would collect his mail and greet visitors. Notably, the court took issue with the fact that the attorney was not physically present in the space and relied on technology to run his office. It noted that the attorney’s attendance at the space was “sporadic and unscheduled.” It rejected the attorney’s claims that advances in technology made it possible for him to handle client matters without his presence at the office and that he complied with the bona-fide office rule because he was reachable by phone. The Court stated that the rule requires that the office be a place with “‘the customary facilities for engaging in the practice of law’” thereby requiring that an attorney be physically present in a traditional office.

Thus, although technology advances and economics may be making the traditional office less appealing to some professionals, the applicable ethics rules may still require a physical presence in the state. As professionals become more remote, we all must be cognizant of the limitations imposed by the rules of professional conduct. This is an important lesson to all who maintain a portion of their practice remotely.