Outline of Record Keeping Requirements under RPC 1.15 and R.1:21-6

https://www.njcourts.gov/attorneys/assets/oae.outline.pdf?c=xVH

Our process for using a pipeline report to forecast revenue and cash for contingency-based law firms.

If they get the right number in the wrong box, that is a training issue. They know what the number should be but don't know the system or software.

If they get the wrong number in the right box, that is sloppy. They know the system but don't care enough to be accurate. This is an issue which determines continued employment - or not.

If they get the wrong number in the wrong box, that is a hiring issue. You never should have hired that person.

If they get the right number in the right box but do so slowly, that is a compensation issue. As long as you can correlate compensation to production, they are a valuable team member.

If they get the right number in the right box and do so quickly, you do everything you can to keep them. You can build an enterprise with them.

From Steve Parker, CPA

Plaintiff personal injury firms have processes and workflows that are not well suited to the practice systems designed for hourly time and billing firms. 

We are working with or watching the below practice management systems dedicated to personal injury firms.

• CASEpeer
• Cloudlex
• Filevine
  
  

Colorado IOLTA account requirements are detailed in Rule 1.15 of The Colorado Rules of Professional Conduct.

• PDF
• The Colorado Rules of Professional Conduct – website based

Colorado Lawyer Trust Account Foundation COLFAT

• Collects and disburses interest earned on Colorado IOLTA accounts.
• COLTAF Prime Partner Banks
• COLTAF Bank Account Enrollment Form

Administrative or firm funds are allowed in Colorado IOLTA accounts.

• Colorado Rules of Professional Conduct 1.15 Safekeeping Property (g) “A lawyer may deposit funds reasonably sufficient to pay anticipated service charges or other fees for maintenance or operation of such account into trust accounts. Such funds shall be clearly identified in the lawyer’s records of the account.”
• As a starting point, we suggest keeping at least $100 of firm funds even in low volume IOLTA accounts to cover bounced check fees.

We use the below resources when managing California IOLTA accounts.

California IOLTA account requirements are regulated by Rule 4-100 of the California Rules of Professional Conduct.

We also use the Handbook on Client Trust Accounting for California Attorneys.

We use the below resources when managing Arizona IOLTA accounts.

Arizona State Bar – Law Office Management Assistance (LOMAP)

Website

State Bar of Arizona – Client Trust Accounting for Arizona Attorneys Manual

Under Arizona Supreme Court Rule 43 – Guidance on IOLTA Trust Accounting – PDF

There’s an exception to the rule prohibiting law firms from depositing firm funds into the IOLTA trust account.

Example Scenario
-Client gives law firm $10,000 of advance funds.
-Check is deposited to IOLTA account.
-Two days later, firm receives notice the $10,000 check bounced. The bank deducts the $10,000 check from the IOLTA account along with a $20 service fee.

Who funds the $20 service fee? The client’s balance history is the $10,000 deposit less the $10,000 returned item for an ending balance of $0.

Options are:
1) Client’s IOLTA balance is negative. Clients cannot have negative IOLTA balances.
2) The $20 was taken from another client’s IOLTA funds…

The solution is to keep enough firm funds in the IOLTA account to cover bank charges. We suggest keeping at least $100 of firm funds in the IOLTA account and replenishing as needed.

Citations

Texas
A Lawyer’s Guide to Client Trust Accounts – State Bar of Texas – April 15, 2014...