A discussion of trust accounting, conflicts, social media, metadata, cloud computing, and other ethical topics for lawyers.

1. SHEILA BLACKFORD
DEE CROCKER
BEVERLY MICHAELIS
ETHICS OF
PRACTICE MANAGEMENT
I N T H E 2 1 S T C E N T U RY
TOPICS
Trust Accounting
Conflicts
Social Media
Metadata
Cloud Computing
Ethics Potpourri
+ Bonus Practice Tips!

2. 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

3. 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 daily
Deposit daily
Protect after hours
Issue receipts for cash
Protect other client property
Protect other client property

4. 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

5. ACCOUNT TO THE CLIENT
BEWARE OF PREPAID FIXED FEES
1. Put it in writing
2. Earned upon receipt
3. Subject to refund

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

7. PRACTICE
Pros
Cons
 Clients like certainty
 Easy to budget
 Immediate income
Solution?
l
?
 Bad bargain?
 Calculating refunds
 Money out‐of‐pocket
 Requires timekeeping
 Excessive fee?
• Fixed fee in trust
• Specify when earned
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

8. 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 lockup
p
2. Protect credit card numbers
3. Supervise staff
4. Learn more

9. RESOURCES
Oregon State Bar
http://www.osbar.org/ethics/bulletinbarcounsel.html
General Counsel  Bar Counsel Articles  Ethics Opinions
BarBooks – Fee Agreement Compendium
Professional Liability Fund
www.osbplf.org
Dee Crocker – Beverly Michaelis – Sheila Blackford
y
Forms  Books  In Brief articles  CLEs  Confidential Advice
Oregon Law Institute
http://bit.ly/cWEmzS
Oregon Rules of Professional Conduct Annotated
TRUST ACCOUNTING
FOR SOLE PRACTITIONERS

10. METADATA
“DATA ABOUT THE DATA”
METADATA IS EVERYWHERE
1 Word processing documents
1. Word processing documents
2. Spreadsheets
3. Database files
4. Videos and photographs
5. Every electronic file!

11. Path and file names
Author
Date and time stamps
Company or firm name
Inserted text
Document versions
Comments
Headers and footers

12. 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

13. 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

14. PRACTICE
Agree not to review metadata
Agree not to review metadata
CONFLICTS OF INTEREST
BEST PRACTICES

15. 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

16. USE WHAT YOU ALREADY HAVE
1. Microsoft Outlook
2. Access or other database application
3. Searchable Address Book
OR BUY A PROGRAM
PC/Windows
 Amicus Attorney
 PracticeMaster
 ProLaw
Time Matters
 Time Matters
Mac
 Daylite
 LAWSTREAM
 Legal Suite
http://www.americanbar.org/groups/departments_offices/legal_technology_resources/
resources/charts_fyis/casemanagementcomparison.html

17. USE THE CLOUD OR STAND‐ALONE SOLUTIONS
Cloud
 Clio
 Rocket Matter
 RTG Conflicts
Stand‐Alone
 RTG Conflicts
 Legal Software Systems
http://www.americanbar.org/groups/departments_offices/legal_technology_resources/
resources/charts_fyis/coninterestfyi.html
SEARCHING CASE MANAGEMENT SOFTWARE

18. CASE MANAGEMENT SEARCH RESULTS
CAPTURE ALL PARTIES
Clients
Adverse Parties
Related Parties
Declined Clients
Prospects
Pro Bono Clients
Firm Members
The second golden rule

19. KNOW HOW TO USE YOUR SYSTEM
 William, Bill, or Willy?
 Elizabeth or Liz?
 Former Names
The third golden rule
Always
document
your file
 SSN or TIN
 DOB
 123 ABC Street

20. Add the new
names from
your intake
form
PRACTICE
Remember to specify
Remember to specify
the relationship to the client

21. PRACTICE
Circulate
New Matter
y
Lists Weekly
SCREEN AND PREPARE
Screen incoming lawyers
Prepare outgoing lawyers
Keep your own list
Check conflicts here!

22. 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
Fourth

23. CLOUD COMPUTING
O S B F O R M A L O P I N I O N 2 0 1 1 ‐ 1 8 8
Ethical due diligence is all about
doing your homework

24. VET THE VENDOR
 Reputation?
p
 Duration in business?
 Serving other lawyers?
VET THE VENDOR
 Secure facilities?
 Geographically dispersed servers?
 Meets industry standards?

25. UNDERSTAND ALL TERMS
Review the terms of service
2. Read the vendor’s privacy policy
3. Is there a “business agreement?”
1.
SHOULD YOU USE THE CLOUD?
Any browser
Any platform
Any location (with Internet)
Any time
$$$

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

27. 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

28. 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/

29. YOUR USE OF SOCIAL MEDIA
Social media for lawyers: a word of caution
http://www.osbar.org/publications/bulletin/09nov/barcounsel.html
Sorting out social media: tools & etiquette
http://www.osbar.org/publications/bulletin/12may/practice.html
Get the book!
http://apps.americanbar.org/abastore/
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ETHICS POTPOURRI

30. BE MINDFUL OF WHAT OTHERS HEAR
 Inside the office
Inside the office
 Outside the office
BE CAREFUL OF WHAT OTHERS SEE

31. 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

32. Contact Us
PLF Practice Management Advisors
www.osbplf.org
b lf
503-639-6911 - 800-452-1639
Beverly Michaelis
Sheila Blackford
Dee Crocker
beverlym@osbplf.org
sheilab@osbplf.org
deec@osbplf.org
and confidential