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 deec@osbplf.orgBeverly Michaelis beverlym@osbplf.org

PLF Practice Management Advisors

503-639-6911 * 800-452-1639

and confidential