Followers


    ShoutMix chat widget

It's The Client's Money: Seven Important Points To Remember! by Vicki Voisin, ACP


The American Bar Association's Model Rule 1.15 addresses the attorney's ethical obligation to keep a client's property safe. That obligation includes:

• Keeping the property or funds separate from the lawyer's property and in a safe place, such as a separate bank account, a safe deposit box, or a fireproof safe

• Keeping accurate and complete records of the client's funds and property (rules regarding the records to be kept vary from state to state)

• Promptly notifying the client when property or funds are received

• Promptly delivering the property to the client when entitled

• Providing a full accounting of the property upon the client's request

The client's funds are not to be commingled with the law firm's general operating account(s). Violation of this rule, even if there is no harm to the client, may result in the attorney being disciplined. There may be other ramifications such as criminal charges and civil litigation.

This is a serious issue. Here are seven important things you must remember when handling the client's money or other property:

1. 'Fees paid in advance' are not to be confused with 'retainer fees.' Advanced fees are usually requested to ensure the attorney's fees and costs will be paid. These fees are never deposited in the firm's general account. Instead, they are deposited in the client trust account and may be withdrawn only as fees are earned or expenses are paid. The fees are considered 'earned' when they are billed. Any unearned advanced fees are to be refunded to the client.

2. A 'retainer fee' is a flat amount that is paid for a specific period of time, such as monthly. Retainer fees are paid to guarantee that the attorney will be available for whatever work has to be done during the specified period of time. The retainer fee belongs to the attorney whether or not the attorney does work that would earn payment of the fee. They are not returned to the client, regardless of the amount of work done on the client's behalf.

3. Any funds received by the attorney but still belonging to the client are deposited in the law firm's trust account. The trust account is a separate account from the attorney's general operating account. It is maintained in the state where the attorney's office is located. The two accounts are never commingled, even if there is no harm to the client. For instance, it is unethical to borrow funds from the trust account to buy new office furniture or cover payroll, even if the money can be returned to the trust account before it is missed.

4. The client trust account may also be called the IOLTA Account. This is the Interest on Lawyers' Trust Account program. The supreme courts or legislatures of all 50 states have established these programs so that the interest on the attorney's trust account is forwarded to the State Bar to provide legal services for low-income citizens.

5. States are divided on the issue of paying unearned fees by credit card. The ABA approves the use of credit cards for payment of earned fees. Those fees may be deposited directly into the firm's operating account. It has been suggested that payments for unearned fees (remember that these funds still belong to the client and must be treated as such) may not be made to a credit card account that is used for the firm's general operating funds. (See Arizona Ethics Opinion 08-01 and Michigan RI-344 for examples). It would probably be best if attorneys have two credit card merchant accounts...one for earned legal fees and costs and a second for advance fees and expenses.

6. Some states allow nonlawyers to sign trust account checks. The rule varies from state to state. Whatever the rule, the attorney remains responsible for any mistakes or theft of funds from the account. It is important that the attorney reviews all trust account transactions each month. The attorney is ultimately accountable for the safekeeping of the client's funds. Nonlawyers can be prosecuted for mishandling the funds.

7. According to ABA Model Rule 1.5, the attorney must keep records of trust account funds and other property for five years after representation of the client ends. This time period varies from state to state.

Your challenge: Review the Model Rules and Ethics Opinions in your state so that you understand the rules that apply to your firm's handling of client funds and property. While the attorney will be disciplined if errors are made, you, too, could subject to criminal or civil penalties. Your firm should have a system in place to ensure that its clients' funds and property are handled properly and ethically.

©2000 Vicki Voisin, Inc.

Ethical Internet Marketing Strategies and Search Engine Optimization for Personal Injury Attorneys


11,200 Disabling Accidental Injuries Take Place Every Hour Each Year.

Personal injury attorneys need to be able to capture injured claimants quickly before they find another lawyer or their statute of limitations run out.

Burbank, CA - There may be an unlimited number of people suffering from a variety of injuries, but for the savvy personal injury lawyer, acquiring the "right" client isn't as easy as falling off a log. Sad as it may be, not all claimants really have a case and those that do don't always have the level of damages that make going to court worthwhile. PI attorneys handle a wide range of lawsuits but not all personal injury lawyers take on every type injury. Since personal injuries are not always physical in nature some lawyers will handle cases of injury as the result of libel, slander, malicious prosecution, or false arrest. Other may focus on sickness, disease, or death sustained by another person or due from negligence of a business, home owner or other persons. Given this wide berth of examples for personal injury claims, people locating a qualified personal injury attorney that will specialize in their particular type of injury is paramount to winning and makes the search for those lawyers a process that shouldn't be left to chance.

The only way to curtail this kind of inefficiency is through the effective use of your web site and the development of powerful and ethical internet marketing strategies and search engine optimization. SEO and SEM campaigns are proven, cost effective methods that do more than just generate traffic; they can be crafted to qualify and confirm clients of real value, taking them from potential clientele to profitable claimants. As a personal injury attorney your time is extremely valuable. Taking time to talk on the phone or answering emails from claimants that have no potential or are not in line with your criteria is a big waste. If a personal injury attorney estimates an hourly rate of $300 and each initial call takes an average of 30 minutes and your web site generates perhaps 4 calls a day from non-qualified plaintiffs, you've just thrown away $600 per day or $3,000 per week. Take into consideration the number of weeks you put in during the year, say 48 weeks, those non-qualified inquires just cost you $144,000.

Winning the prestigious TOP SEO award for being one of the best SEO companies in the country by internet authorities, TopSEOs.com, iMajestic is superior in its approach and support of personal injury attorneys in need of utilizing their web site to generate profitable clients.

"iMajestic has the industry's only Pure Performance based optimization services which guarantee that our clients never pay unless we achieve the objective and maintain your rankings in the search engines you desire. We hold ourselves 100% accountable for performance and compensation."

For more information about this revolutionary approach to Internet marketing and business relations go to www.imajestic.com or contact them direct at 1-866-851-2402. by Andrew Torchon