ethics of practice management in the 21st century
DESCRIPTION
A discussion of trust accounting, conflicts, social media, metadata, cloud computing, and other ethical topics for lawyers.TRANSCRIPT
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 [email protected] Blackford [email protected] Crocker [email protected]
www.osbplf.org503-639-6911 - 800-452-1639
and confidential