Setting Up a Practice: Cautions and Pitfalls
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Transcript of Setting Up a Practice: Cautions and Pitfalls
Setting Up a Practice:Cautions & Pitfalls
Beverly MichaelisDee Crocker
Practice Management AdvisorsProfessional Liability Fund
Failure to protect client funds
Inadequate accounting
Unexplained overdrafts
Trust Accounting Violations
Lead to Bar Complaints
Missed deadlines
Failure to detect conflicts
Lost documents
Administrative Errors Cause
Malpractice Claims
Trust Funds Deadlines Conflicts of Interest
Learn How to Manage
Managing Your Lawyer Trust Account
Is It the Client’s Money?
1. Retainers
2. Settlement proceeds
3. Overpayments
Use the Trust Account
Or is it Your Money?
You’ve done the work
Billed the client – or –
The fee is earned upon receipt
Use theGeneral Account
Keep an Audit Trail
• Each client is separate
• Track all deposits and withdrawals
Software
http://tinyurl.com/bls7too
Bank → Register → Ledger
Bank Balance $1000
Register Balance $1000
Client Ledgers $1000Client A $ 200
Client B $ 300
Client C $ 500
$1000
Use Credit Cards Wisely
Earned Upon Receipt Fees
Signed written agreement required
Describe as “earned upon receipt”
Include disclosures required by ORPC 1.5
OSB Opinion 2005-151
Earned Upon Receipt Fees
Refund balance if work not done
Avoid “nonrefundable”
See PLF sample agreement
OSB Opinion 2005-151
Avoid Tempation
1. No cash draws
2. Don’t pay rent from trust
3. Use caution with transfers
Managing Deadlines
Technology +
Effective Office Systems
= Successful Time Management
Be a FilerNot a Piler
Allow Sufficient
Lead Time
Tickle
and Follow-up
Software
Software
Compare at: http://tinyurl.com/4xfsoos
Managing Conflicts
Even if You…1. Limit your practice to one side
2. Limit your practice to one area
3. Practice alone
4. Practice with others
Capture Everyone
• Clients and adverse
• Related parties
• Declined clients
• Pro bono clients
• Members of your firm
Capture Everything
SSN or TIN
DOB
123 ABC Street
FKA
Nicknames
Run Conflict Checks
1. At first contact
2. At file opening
3. When new party enters case
Document Your File
More Choices
Manage Trust Funds Manage Deadlines Manage Conflicts
Summary
Contact Us
Dee Crocker [email protected] Michaelis [email protected]
PLF Practice Management Advisors
503-639-6911 * 800-452-1639
and confidential