SHEILA BLACKFORDDEE CROCKER

BEVERLY MICHAELIS

ETHICS OF PRACTICE MANAGEMENT

IN  THE  21ST CENTURY

TOPICS

Trust AccountingConflictsSocial Media

Metadata

Cloud Computing

Ethics Potpourri

+ Bonus Practice Tips!

TRUST ACCOUNTING

KEY  CONCEPTS

“A LAWYER SHALL HOLD PROPERTY OF CLIENTS OR THIRD PERSONS SEPARATELY…”

1. Retainers

2. Settlement proceeds

3. Overpayments

4. Third party payments

Oregon RPC 1.15‐1

THIRD PARTY PAYMENT RULES

1. Follow Oregon RPC 1.8(f)g ( )

2. Redact billing statements

3. Specify who receives refund of unearned fees

OSB Formal Ethics Opinion 2005‐157

DUTY OF SAFEKEEPING

Deposit dailyDeposit daily

Protect after hours

Issue receipts for cash

Protect other client propertyProtect other client property

PRACTICE

Smartphone Apps Desktop Deposit

DON’T SPEND WHAT YOU DON’T HAVE

1. Funds must clear

2. Use the minimum 3‐5‐10 day guideline

3. Be wary of scams

ACCOUNT TO THE CLIENT

BEWARE OF PREPAID FIXED FEES

1. Put it in writing

2. Earned upon receipt

3. Subject to refund

Use stage of completion

If half the work is done, refund half the fee

Hourly rate computations not allowed

How Much Do I Owe You?"New" Guidelines For Fixed And So‐called Nonrefundable Fees

http://www.osbar.org/publications/bulletin/11oct/barcounsel.html

Designation of a prepaid fixed feeDesignation of a prepaid fixed fee as nonrefundable may be misleading, if not false, in violation of Oregon RPC 8.4(a)(3) f g ( )( )

PRACTICE

Pros Cons

Clients like certainty

Easy to budget

Immediate income

Bad bargain?

Calculating refunds

Money out‐of‐pocket

Requires timekeeping

l ? Excessive fee? 

• Fixed fee in trust

• Specify when earned

Solution?

DIVISION OF FEES

1. Disclosure + consent

2. Total fee cannot be excessive

3. Includes “referral fees”

4. Get it in writing!

See Chapter 12, “Referral Agreement Between Lawyers,” Fee Agreement Compendium – OSB BarBooks

FEE AGREEMENT MODIFICATIONS

Reason for change  +

Explanation of effect  +

Client consent  +

Objective fairness =

Allowable modification

OSB Formal Opinion 2005‐97

PROTECT AGAINST THEFT

1. Endorse and lockupp

2. Protect credit card numbers

3. Supervise staff

4. Learn more

RESOURCES

Oregon State Barhttp://www.osbar.org/ethics/bulletinbarcounsel.htmlGeneral Counsel  Bar Counsel Articles  Ethics OpinionsBarBooks – Fee Agreement Compendium

Professional Liability Fundwww.osbplf.org

Dee Crocker – Beverly Michaelis – Sheila BlackfordyForms  Books  In Brief articles  CLEs  Confidential Advice

Oregon Law Institutehttp://bit.ly/cWEmzS

Oregon Rules of Professional Conduct Annotated

FOR  SOLE  PRACTITIONERSTRUST ACCOUNTING

METADATA

“DATA  ABOUT  THE  DATA”

METADATA IS EVERYWHERE

1 Word processing documents1. Word processing documents

2. Spreadsheets

3. Database files

4. Videos and photographs

5. Every electronic file!

Path and file names

Author

Date and time stamps

Company or firm name

Inserted text

Document versions

Comments

Headers and footers

Tracked changes

Template information

Undo and redo history

Network or server name

http://bit.ly/voJOnR

http://bit.ly/uxhJgW

ACT COMPETENTLY

OSB Formal Opinion 2011‐187

USE REASONABLE CARE

1. Prevent inadvertent disclosure

2. Limit nature of metadata

3. Limit scope of metadata

OSB Formal Opinion 2011‐187

PRACTICE

Print to PDF

PRACTICE

Agree not to review metadataAgree not to review metadata

CONFLICTS OF INTEREST

BEST  PRACTICES

MANAGING CONFLICTS

Establish a reliable system

Capture all parties

Know how to use your system

Know when to run a conflict check

ESTABLISH A RELIABLE SYSTEM

Manual Systems Software Solutions

The first golden rule

USE WHAT YOU ALREADY HAVE

1. Microsoft Outlook

2. Access or other database application

3. Searchable Address Book

OR BUY A PROGRAM

PC/Windows Mac

Amicus Attorney

PracticeMaster

ProLaw

Time Matters

Daylite

LAWSTREAM

Legal Suite 

Time Matters

http://www.americanbar.org/groups/departments_offices/legal_technology_resources/resources/charts_fyis/casemanagementcomparison.html

USE THE CLOUD OR STAND‐ALONE SOLUTIONS

Cloud Stand‐Alone

Clio

Rocket Matter

RTG Conflicts

RTG Conflicts

Legal Software Systems

http://www.americanbar.org/groups/departments_offices/legal_technology_resources/resources/charts_fyis/coninterestfyi.html

SEARCHING CASE MANAGEMENT SOFTWARE

CASE MANAGEMENT SEARCH RESULTS

CAPTURE ALL PARTIES

Clients Declined Clients

Adverse Parties

Related Parties

Prospects

Pro Bono Clients

Firm Members

The second golden rule

KNOW HOW TO USE YOUR SYSTEM

William, Bill, or Willy? SSN or TIN

Elizabeth or Liz?

Former Names

DOB

123 ABC Street

The third golden rule

Always document your file

Add the new names from your intake 

form 

PRACTICE

Remember to specifyRemember to specify the relationship to the client 

PRACTICE

Circulate 

New Matter

Lists Weeklyy

SCREEN AND PREPARE

Screen incoming lawyers

Prepare outgoing lawyers

Keep your own list

Check conflicts here!

PRACTICE

1. Update your system at closing

2. Be aware of consent requirements

3. Avoid business deals with clients

KNOW WHEN TO RUN A CONFLICT CHECK

At first contact

When the file is opened

Whenever a new party enters the case

FFourthourth

CLOUD COMPUTINGOSB  FORMAL  OPINION  2011 ‐188

Ethical due diligence is all about doing your homework

VET THE VENDOR

Reputation?p

Duration in business?

Serving other lawyers?

VET THE VENDOR

Secure facilities?

Geographically dispersed servers?

Meets industry standards?

UNDERSTAND ALL TERMS

1. Review the terms of service

2. Read the vendor’s privacy policy

3. Is there a “business agreement?”

SHOULD YOU USE THE CLOUD?

Any browser

Any platform

Any location (with Internet)

Any time

$$$$$$

Source: Up, up and away! The cloud computing way! community.ca.com

RESOURCES

Data protection and cloud backup (video)http://www.lawtechnologytoday.org/2013/07/video‐data‐protection‐and‐cloud‐backup‐for‐any‐size‐firm/

What is cloud computing?http://www.americanbar.org/groups/departments_offices/legal_technology_resources/resources/charts_fyis/saas.html

Get the book! http://apps.americanbar.org/abastore/

SOCIAL MEDIA

PUBLIC INFORMATION

Up for Grabs

OSB Formal Opinion 2013‐189

NON‐PUBLIC INFORMATION

Represented parties Represented parties

Non‐represented parties

Jurors

http://oregonlawpracticemanagement.com/2013/03/25/the‐ethics‐of‐using‐social‐media‐for‐investigation/

YOUR USE OF SOCIAL MEDIA

Social media for lawyers: a word of cautionhttp://www.osbar.org/publications/bulletin/09nov/barcounsel.html

Sorting out social media: tools & etiquettehttp://www.osbar.org/publications/bulletin/12may/practice.html

Get the book! h // i b / b /http://apps.americanbar.org/abastore/

ETHICS POTPOURRI

BE MINDFUL OF WHAT OTHERS HEAR

Inside the officeInside the office

Outside the office

BE CAREFUL OF WHAT OTHERS SEE

PROTECT CONFIDENTIALITY DURING DESTRUCTION

Darik’s Boot and Nuke

OFFICE SHARING AND CONFLICTS

1. Screen for conflicts if you share employees

2. Assure phone messages remain confidential

3. Assure mail remains confidential

4. Retrieve copies, faxes, print jobs

OSB Formal Opinion 2005‐50

Contact Us

PLF Practice Management Advisorsb lf

Beverly Michaelis beverlym@osbplf.orgSheila Blackford sheilab@osbplf.orgDee Crocker deec@osbplf.org

www.osbplf.org503-639-6911 - 800-452-1639

and confidential