Q. Wishing to handle it herself, my client has asked me not to pay one of her doctors from the proceeds of her settlement. I never signed anything to guarantee such payment, but I'm afraid that the doctor will claim a lien on the proceeds and come after me. What should I do?
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Posts on Managing Law Firm Finances and Protecting Client Funds
Q. Whenever my client gets a bill, he calls to question each of my time entries, keeping me on the phone for 30-45 minutes each time. May I bill him for this time?
Q. If my clients agree to it in writing, can I avoid the need for a trust account and put their money elsewhere?
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?
Q. Unable to take payments in person these days, I may let clients use apps like Paypal and Venmo to pay fees and retainers online. Are such payments allowed?
Q. Since business has slowed, I finally have time to reconcile my trust account. But I haven't a clue on where to begin. Can you help me?
Q. Hit by the wave of COVID-19 layoffs, my client is desperate for money and calls often to see if her settlement check arrived. It just came in today's mail, jointly payable to us both. Since I can't have her visit to endorse it herself, may I sign it for her?
Q. I'm applying for a loan through the federal Paycheck Protection Program. I can probably survive without it, but if I use the funds to pay my staff, the feds will forgive the loan entirely and subsidize my payroll. Are you doing it too?
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. Licensed in Maryland and the District of Columbia, I find it challenging to represent consumers and small businesses that can't afford the legal fees of my competitors. If Maryland puts a tax on legal services, how would that impact my clients and my practice?
Q. After a rear-end crash and two years of treatment, the victim retained me on contingency. Within a week, I sent the liability carrier a strong settlement demand along with $175,000 in medical bills. After getting $300,000 in policy limits, my client says I didn't do "enough work" to earn a third of it. A deal's a deal, right?
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. Disabled after her accident, my client can't pay her mortgage, her medical bills, or even her utility bill. Desperate to survive, she wants to settle her case for a fraction of its value. May I advance her living expenses until after we resolve the case?
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. 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. 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?