PLF Policy 3.180

Out-Of-State OSB Members; Principal Office

(A) The provisions of ORS Ch. 9 concerning the location of the principal office of an active member of the OSB are interpreted by the PLF as stated in this policy. This policy will apply to all active OSB members.

(B) Definition of Office: As used in this policy, the term “office” will mean a location which is held out to the public by an OSB member as an office where the OSB member engages in the private practice of law. Indicia that a location is held out to the public in this manner will include, but not be limited to, the following:
 
(C) No Office: If an OSB member has no office as defined in subsection (B) above, the OSB member’s principal office as defined by ORS Ch. 9 will be defined as the OSB member’s principal residence if the OSB member is an active member of the bar association of the state of residence; otherwise, the OSB member’s principal office will be deemed to be in Oregon unless the OSB member affirmatively demonstrates to the PLF that the OSB member does not engage in the private practice of law in Oregon.

(D) One Office: If an OSB member maintains only one office as defined in subsection (B) above, the OSB member’s principal office as defined by ORS Ch. 9 will be defined as that office.

(E) Two or More Offices:

(1) Two Offices: If an OSB member maintains two offices as defined in subsection (B) above, the OSB member’s principal office as defined by ORS Ch. 9 is the office where the OSB member is physically present more than 50 percent of the time engaged in the private practice of law.

(2) Multiple Offices: If a maintains more than two offices as defined in subsection (B) above, the location of the OSB member’s principal office as defined by ORS Ch. 9 is determined by making the following calculation:

(a) All the time the OSB member is physically present in all offices of the OSB member in Oregon will be aggregated the “Oregon Office Time”.
(b) All the time the OSB member is physically present in all offices of the OSB member outside of Oregon will be aggregated the “Non-Oregon Office Time”.
(c) The two totals calculated under subsections (1) and (2) above will be compared. If the Oregon Office Time is greater than the Non-Oregon Office Time, the OSB member’s principal office is in Oregon. If the Non-Oregon Office Time is greater than or equal to the Oregon Office Time, the OSB member’s principal office is not in Oregon.

(F) In determining the location where an OSB member engages in the private practice of law more than 50 percent of the time for the purposes of ORS Ch. 9 and this policy, only the amount of time the OSB member is physically present at each office of the OSB member (as defined under subsection (B) above) while engaged in the private practice of law will be considered. Time spent at any office unrelated to the private practice of law will not be considered. Other factors will not be relevant to this determination, including, but not limited to, the following:

(1) The fact that an OSB member lives in any particular state.
(2) The fact that the OSB member sometimes engages in the private practice of law at home if the home is not an office as defined under subsection (B) above.
(3) The fact that the preponderance of an OSB member’s clients are located in any particular state.
(4) The fact that an OSB member’s practice is concentrated before the courts or agencies of any particular state.
(5) The fact that an OSB member uses secretarial, administrative, or research facilities located in any particular state.

(G) The determination of where the principal office of an OSB member is located will be made as of January 1 of each year based upon an OSB member’s activities during the prior 12 months (or during such continuous period ending on December 31 as the OSB member has maintained at least one office in Oregon and at least one office outside Oregon, whichever time period is shorter). Subsequent mid-year changes in the amount of time spent at various offices will not affect the OSB member’s status except under the following circumstances:

(1) If the OSB member’s principal office as of January 1 was in Oregon, but the OSB member ceases mid-year to have an office in Oregon, the OSB member’s principal office will cease to be in Oregon as of the date the OSB member ceases to have an office in Oregon. The OSB member’s PLF Primary Coverage Plan will automatically convert to Extended Reporting Coverage as provided under Policy 3.620, and the OSB member will have no PLF coverage for any acts, errors, or omissions which occur after the date the OSB member ceases to have an office in Oregon. The OSB member may be entitled to a prorated refund of the annual PLF assessment.

(2) If the OSB member’s principal office as of January 1 was not in Oregon, the OSB member has an office in Oregon, and the OSB member ceases mid-year to have an office outside of Oregon, the OSB member’s principal office will be in Oregon as of the date the OSB member ceases to have an office outside of Oregon. The OSB member must notify the PLF within ten days, and will receive a prorated billing statement for PLF primary coverage for the balance of the year.

(H) A OSB member who opens an office in Oregon but continues to maintain an office outside Oregon will not be permitted or required to obtain PLF coverage until the next January 1, and then only if the OSB member was physically present at the Oregon office a greater amount of time than at the office outside Oregon during the period when the OSB member maintained the two offices. If the OSB member wishes to have malpractice coverage before the attorney is permitted and required to obtain PLF coverage, the OSB member should either continue whatever coverage was in place before the OSB member established an Oregon office or obtain appropriate coverage from the commercial market.

(I) An OSB member whose principal office as defined in this policy is not in Oregon is not entitled to obtain PLF coverage. If an OSB member whose principal office is not in Oregon nevertheless pays the PLF annual assessment intentionally or in error, the OSB member will not have any coverage for claims which are made against the OSB member which would otherwise be covered by the PLF Primary Coverage Plan then in effect, and the OSB member will be entitled to a refund of any assessment paid upon notice to the PLF and be exempt from participation in the PLF.

(J) (1) It is the responsibility of each OSB member to determine if the OSB member’s principal office is in Oregon each year and update the determination mid-year if appropriate. In the event the PLF has any question concerning whether or not an OSB member’s principal office was in Oregon at any particular time, OSB members may be required to provide the PLF with relevant information and supporting documentation upon request, including by way of illustration: office schedules, time slips, and billing statements; office and docket calendars; travel records and invoices; photographs of office areas and signage; and copies of letterhead, business cards, billing forms, and telephone directory listings. Failure of an OSB member to provide information and documentation within 30 days of request will be treated the same as a payment default under Policy 3.350 and ORS 9.200.

(2) The principal office of an OSB member whose official mailing address (as maintained by the OSB) is outside Oregon will be presumed to be outside Oregon for the purpose of this policy. Such a presumption may be rebutted if the OSB member completes such forms and provides such information and documentation as the PLF may request and the PLF is satisfied that the OSB member’s principal office is in Oregon. Notwithstanding the rebuttable presumption stated in this subsection (2), all active OSB members whose official mailing address is outside Oregon will be required to file an annual Request for Exemption with the PLF.

(3) No payments for coverage will be accepted, and no coverage will be issued, to any attorney who does not provide the forms, information, and documentation requested by the PLF under subsections (1) and (2) above.

(K) Special Situations:

(1) If an active member of the OSB (a) does not maintain an office in Oregon, (b) maintains an office in another state, and (c) is not a member of the bar association in the other state, the OSB member’s principal office is not in Oregon and the attorney must claim exemption from PLF participation.

(2) If an active member of the OSB (a) maintains an office and engages in private practice in Oregon, (b) is a member of the bar of another state, and (c) engages in law-related activities at an office in the other state which do not constitute the private practice of law, the OSB member’s principal office is in Oregon and the OSB member must obtain PLF coverage. The OSB member will not have PLF coverage for his or her law-related activities in the other state which do not constitute the private practice of law.

(L) Examples: This policy is illustrated by the following examples. (The OSB member [“Member”] in each example is assumed to be an active member of the OSB engaged in the private practice of law.)

Example: Member A does not maintain an office anywhere and lives in Vancouver, Washington. Member A is not an active member of the Washington State Bar. A’s principal office is in Oregon.

Example: Same facts as prior example for Member B, except that Member B is also an active member of the Washington State Bar. Member B’s principal office is not in Oregon, even if the majority of B’s practice and clients are in Oregon.

Example: Member C maintains an office in Vancouver, Washington, but is not a member of the Washington State Bar. Member C does not maintain an office in Oregon, but all of C’s practice is in the court of Oregon. C’s principal office is not in Oregon.

Example: Member D maintains an office in Ontario, Oregon, and an office in Fruitland, Idaho. On January 1, Member D determines that he spent more time during the prior year physically located at his Oregon office than at his Idaho office. Member D’s principal office is in Oregon.

Example: Same facts as prior example, except that Member D closes his Ontario, Oregon office on the following May 15. Member D’s principal office ceases to be in Oregon on May 15, and his current PLF Primary Coverage Plan ends as of that date and automatically converts to extended reporting coverage. Member D may be entitled to a prorated refund of his annual PLF assessment.

Example: Member E maintains an office in Portland, Oregon and an office in Oakland, California. On January 1, Member E determines that she spent more time during the prior year physically located at her California office than at her Oregon office. Member E’s principal office is not in Oregon.

Example: Same facts as prior example, except that Member E closes her Oakland, California office on the following August 23. Member E’s principal office ceases to be outside Oregon on August 23, and she must notify the PLF within the next ten days. The PLF will send Member E a prorated assessment billing statement with coverage to commence August 23.

Example: Member F maintains an office in Portland, Oregon and an office in Seattle, Washington. On January 1, Member F determines that he spent more time during the prior year physically located at his Seattle office than at his Portland office. Member E’s principal office is therefore not in Oregon. However, during the year it becomes obvious to Member F that he will spend more than 90 percent of his time in his Portland office. So long as Member F maintains a Seattle office, the location of his principal office does not change during the year and Member F is neither required nor permitted to obtain PLF coverage; however, the following January 1 his principal office for the coming year will be determined to be in Oregon.

Example: Member G maintains three offices, one in Portland, Oregon, one in Salem, Oregon, and one in Vancouver, Washington. On January 1, he determines that he spent 25 percent of his time at his Portland office, 15 percent of his time at his Salem office, and 60 percent of his time at his Vancouver office during the prior 12 months. Because the Oregon office time (40 percent) is less than the non-Oregon office time (60 percent), Member F’s principal office is not in Oregon.

Example: Member H maintains three offices, one in Medford, Oregon, one in Yreka, California, and one in Denio, Nevada. On January 1, she determines that she spent 45 percent of her time at her Medford office, 20 percent of her time at her Yreka office, and 35 percent of her time at her Denio office during the prior 12 months. Because the Oregon office time (45 percent) is less than the non-Oregon office time (55 percent), Member H’s principal office is not in Oregon. On July 12, Member H closes her Denio, Nevada office. Because she still maintains an office outside of Oregon, the location of Member F’s principal office for the year does not change even though she spends more time at her Medford office than at her Yreka office during the rest of the year. However, the following January 1 her principal office for the coming year may be in Oregon if her total Oregon office time the previous year exceeded the total non-Oregon office time.

Example: Member I is a member of both the Oregon and California State Bars, but maintains only an office in Los Angeles. On September 1, he opens an office in Portland, but he keeps his Los Angeles office as well. During the balance of the year, Member I is physically present 80 percent of the time in his Portland office and 20 percent in his Los Angeles office. Member I is neither required nor permitted to maintain PLF coverage for the period September 1 through December 31, but he is required and permitted to obtain PLF coverage for the following year as of January 1.