Q. In divorce cases, my retainer provides that a $1,000 "engagement fee" is "non-refundable" and "earned upon receipt." This assures my client that I won't represent the other side. Must I put this fee in my trust account?
The Lawyer's Lawyer
Lawyers Helping Lawyers Avoid the Perils of Professional Discipline
Posts on Managing Law Firm Finances and Protecting Client Funds
Q. After lengthy litigation, we recently collected a large outstanding bill from a client who filed a frivolous counterclaim against us for malpractice. To prevent this from happening again, may we require binding arbitration in future retainer agreements?
Q. I've always heard that referral fees are forbidden. But I know lawyers who routinely refer cases for a share of the profit, even if they're not licensed where the cases are pending. Isn't this unethical?
Q. I took a complicated contingency case to trial and lost. Now my client wants me to appeal the verdict for free. Must I?
Q. As the new managing partner of our firm, I have no idea how to manage our trust account. What must I do to comply with the rules?
Q. Representing a Korean supplier of silicone for electronics, I demanded $90,000 from a U.S. company that failed to pay for these materials and immediately received a $90,000 cashier's check. My client wants me to wire its net recovery from my trust account to its Canadian bank. Any need to wait?
Q. I settled a weak case for $30,000, and got my client's medical bills reduced to $15,000. But my client is angry that he's "netting a measly $5,000," won't let me pay his doctors, and objects to my one-third fee. What should I do?
Q. After ten months of discovery in a complex civil case, my client fired me for "taking too long" and refused to pay her bill. Now, her new lawyer has asked me for the file. May I keep it until I get paid?
Q. I'm ashamed to admit that I don't know how to balance my own checkbook. Knowing that banks are reporting overdrafts to the grievance board, I'm terrified of bouncing a check on my trust account. May I keep some extra money in the account just to be safe?
Q. I may not have enough business to justify a credit card merchant account. But apps like Paypal and Venmo let my clients send fees and retainers online. Are such payments allowed?
Q. Unhappy with my client's engineering work, a huge contractor ignored my demand for payment of a $150,000 bill. It's a small sum to the contractor, but a lot of money for my client to lose. With more documents than cash on hand, my client wants to sue and fight "on principle." How should I engineer this?