Settlement payments are among the highest-stakes transactions law firms handle. Whether the funds arrive by check, wire, cryptocurrency, foreign currency transfer, or wampum, how a firm processes them can be the difference between a seamless close and a six-figure loss—or worse, an ethics complaint. Fraud, malpractice risk, and ethical pitfalls abound. But with the right systems, you can manage them all.
Plaintiff-side or defense, before any funds are received or disbursed, firms should confirm all settlement terms in writing. That includes the gross amount, any deductions ...
A lawyer’s duty to keep clients informed is a cornerstone of the attorney-client relationship, grounded in the rules of professional conduct and essential to client autonomy.
Duty to Inform: The Baseline Rule
Under ABA Model Rule 1.4, a lawyer must:
Keep the client reasonably informed about the status of the matter. Promptly comply with reasonable requests for information. Explain matters to the extent reasonably necessary to permit the client to make informed decisions regarding the representation.
This duty reflects the broader ethical principle that the client—not the ...
Mistakes happen. Not even the best lawyers and law firms can catch everything that slips through the cracks.
On top of that, any client can bring a bogus legal malpractice claim or file a frivolous ethics grievance - it is essentially as easy as a bad Yelp review. Even if you get it disposed of early, your insurance premiums are likely going up, your people won’t be billing, and your firm will take a PR hit on Google.
Hope for the best while you plan for the worst. A simple system can address almost any client claim:
- Check retainer agreement, review privity element closely
- Review breach ...
File retention is a critical yet often overlooked aspect of legal practice. Law firms are ethically and legally obligated to maintain client files in a manner that protects confidentiality, ensures accessibility, and aligns with client interests. While some states have specific time periods and document types, most do not. Managing these obligations while mitigating liability requires a thoughtful, and documented, retention policy.
At the heart of file retention are several core ethical duties. First is the duty to safeguard client property. Under Rule 1.15 (Safekeeping ...
Your law firm's engagement agreement is your absolute first and best line of defense. Keep in mind that only clients can sue you for legal malpractice (with extreme exceptions) and clients are by far your primary source of risk of attorney ethics complaints.
This month, pull out your template engagement agreement and make it better, for you, your firm, AND your clients.
16 Ways to Reinforce Your Engagement Agreement
- Clear Language: Use plain language to ensure clients understand the terms, responsibilities, and legal implications - consider an intro/cover letter.
- Define Scope of ...
Rule 1.1 (Competence) vaguely requires "competent representation." The Comment includes 8 ¶s.
Every state has adopted some form of Rule 1.1, with many adding CLE and/or technology competency requirements.
Insights from our law firm General Counsel and yours, Jeffrey J. Cunningham
