Why Attorneys Should NEVER Keep the Original Will [VIDEO]Share this Video
Can I Sell My Practice?
April 30, 2025Can I Sell My Practice?Written by Gregory W. Sampson and Rebekah Steely BrookerShare this PostWith the undeniable graying of our profession, more lawyers are facing retirement and, for some less fortunate, an unplanned early termination of their practice by disability, death, or other circumstances. This leads lawyers and their families to ask whether their hard work building a practice can reap the financial benefits they deserve. The short answer is yes, but the method chosen must be carefully executed to comply with applicable rules of professional conduct. When a lawyer plans to retire or close a practice, a number of traditional methods have worked successfully for decades under our professional responsibility rules. One is to hire an associate, mentor them, and work out a plan for the associate’s ascension and takeover of the practice with an exit compensation plan for the retiring lawyer. Others merge their practice with other firms bringing their client matters with them with consent and negotiate a retirement or exit compensation plan with the new firm. Still others engage co-counsel on open matters with client consent and enable that co-counsel to continue representation upon withdrawal, often with no compensation for the matters transferred beyond …
Alternative Fee Arrangements
Alternative Fee ArrangementsNotes: In addition to the legal ethics considerations listed in the table, see Texas Disciplinary Rules of Professional Conduct, Rule 1.04 regarding fees and Rule 5.04 regarding fee sharing. Other than a true nonrefundable retainer agreement, which are relatively rare, any fees paid to an attorney in any of the following fee arrangements are refundable to the extent that they have not yet been earned by the provision of legal services and must remain in an IOLTA or trust account until earned. See ethics opinion 611. Many of these can be combined, such as a Subscription Model with a Collared Fee or a reduced hourly fee with a contingency fee kicker, ensuring the fee remains reasonable and in compliance with all other rules and ethics opinions. Disclaimer: This chart does not address all issues that should be contained in the fee agreement, such as billing or how expenses will be handled. It provides only a basic overview of various alternative fee arrangements and a starting point for sample explanatory language in an agreement. AFA Type Pros Cons Sample Explanatory Language Legal Ethics Considerations Fixed or Flat Fee Legal service is billed at a set price. Similarly, a Portfolio …
Legal Malpractice Insurance
February 28, 2024Legal Malpractice InsuranceWritten by Patricia PetersonShare this PostWhat is Lawyers Professional Liability (LPL) Insurance? In the legal profession, it is often referred to as legal malpractice insurance. I will use both terms interchangeably throughout this article. LPL insurance insures a law firm and its employees for acts, errors and omissions committed in the provision of legal services. The policy places a duty to defend and duty to indemnify upon the carrier if and when an insured under the policy has a claim asserted against them that is not excluded under the provisions of the policy. The duty to defend and the duty to indemnify are separate duties. For example, if an insured attorney is sued for several causes of action, some of which are covered under the policy and some of which are excluded, the duty to defend will obligate the carrier to provide a defense to all claims. In short, if there is at least one covered claim being asserted against an insured, the insurance carrier must defend all claims until the covered claim is resolved. The duty to defend is “In for one, in for all.” If the suit goes to trial and there is a …
Nonrefundable Retainers: Proceed with Caution
Nonrefundable Retainers: Proceed with CautionIt’s tempting to put a nonrefundable retainer clause in your standard fee agreement. The client agrees that the funds are earned upon receipt so the money can go straight into your operating account. No need to mess with trust or IOLTA accounts. Seems easier, right? Not so much. It may result in disciplinary action. The old adage, “if it sounds too good to be true, it probably is,” applies here. Nonrefundable retainer clauses are often used inappropriately and are a common cause for fee disputes and potential disciplinary action. The following information provides some guidance on when nonrefundable retainers can and cannot ethically be used. Applicable Rules and Ethics Opinion 611 When determining whether a nonrefundable fee agreement is appropriate under the circumstances, it is important to comply with the Texas Disciplinary Rules of Professional Conduct and the guidance provided in ethics opinion 611. Texas Disciplinary Rules of Professional Conduct 1.04 and 1.14. Rules 1.04(a) and (b) and Rule 1.14(a) are particularly relevant for nonrefundable retainers. Rule 1.04 governs fees. Rule 1.04(a) states that a lawyer must not charge, collect, or agree to an illegal or unconscionable fee. A fee is unconscionable “if a competent …
Opening a Small or Solo Law Firm in Texas: Choosing an Entity Structure and Other Requirements
Opening a Small or Solo Law Firm in Texas: Choosing an Entity Structure and Other RequirementsThe State Bar’s Law Practice Management Department often receives questions about starting a small or solo law firm in Texas. The most common questions include whether there are specific requirements for opening a law practice in Texas, what entity type to choose, and whether a law firm from another state can open a law office in Texas if the owners do not live and are not licensed in Texas. Are there any specific requirements for opening a small or solo law practice in Texas? If you’re licensed and in good standing in Texas, technically, no. However, keep a few things in mind when opening a law practice in Texas: IOLTA Account: An attorney who handles client funds must open and maintain an IOLTA (Interest on Lawyers’ Trust Accounts) account and participate in the IOLTA Program, which was established by the Supreme Court of Texas in 1984 as a mechanism for funding civil legal services to low-income Texans by collecting interest on client trust accounts. Rule 1.14 of the Texas Disciplinary Rules of Professional Conduct is often called the “trust account” rule as it governs the …
Sample File Retention Policy
Sample File Retention PolicyThis file retention policy is a sample to help lawyers prepare their own file retention policies and should be adapted to meet the needs of each lawyer’s individual practice. This sample policy does not cover all situations in all law practices and is not intended to replace the lawyer’s professional judgment. A lawyer should consider the context of the lawyer’s practice, the Texas Disciplinary Rules of Professional Conduct, and relevant ethics opinions when establishing a file retention policy. Effective [date], the following file retention policy will be implemented to provide procedures regarding the opening, closing, retention, and destruction of client files. Opening a File. In addition to other procedures used in the opening of a client file, the following language will be included in all engagement letters or retainer agreements: You agree that it is your responsibility to obtain your file. We will notify you when it is available but will do so only once. If your file is not picked up within sixty days after we notify you that it is available, we can assume that you do not want it. In that case, we will retain the file for [number] years and then destroy it …
Practice Tip Checklist for Developing a File Retention Policy
Practice Tip Checklist for Developing a File Retention Policy Ask your malpractice carrier for file retention guidance. At a minimum, include the following in your file retention policy. How the client will be notified of your file retention policy. How the client can obtain their file once the case is closed. Address the cost of postage if the client cannot pick up their file. Consider a policy of offering to return the client file at the close of representation and retaining an electronic copy. How the file will be stored. Store the file in a fireproof, waterproof location that prevents any unauthorized person from accessing its contents. How long the file will be stored before destruction. What, if anything, the client will be charged for storage beyond the destruction date. See ethics opinion 657. How the file will be destroyed in a way that protects confidential information. Consider maintaining full or partial electronic client files. They minimize the need for paper files, reduce storage costs, and can be easily transferred to the client at the close of the case. Make file retention, storage, return, and destruction easier by creating file maintenance policies and procedures for: Opening a client …
Practice Tips Regarding File Retention and Destruction, and Establishing a File Retention Policy
Practice Tips on File Retention and DestructionIntroduction Although there is no rule that specifically lays out the requirements for client file retention and destruction, the Texas Disciplinary Rules of Professional Conduct and a few ethics opinions provide practice tips, as does common sense. Applicable Rules and Ethics Opinions When establishing a file retention and destruction policy, ensure that the retention and destruction of client files do not violate the following rules or stray from the guidance in the following ethics opinions: Texas Disciplinary Rules of Professional Conduct Rule 1.05: Prohibits disclosure of confidential information of current or former clients except in certain circumstances set forth in the rule. Rules 1.09 and 1.10: Prohibit a lawyer from taking adverse action against a former client related to the matter in which the lawyer represented the client. Rule 1.14: States client funds and property must be kept separate from lawyer’s own property in a trust account and records of the account shall be maintained for 5 years after termination of the representation. Rule 1.15(d): A lawyer must take reasonable steps to protect a client’s interest when representation ends, including giving reasonable notice to the client, allowing time for the client to hire another …