Inner Temple Presents She-Lock Holmes & Dr. Watson starring in:

The Town Without a Lawyer

Featuring Judge Sasser as She-Lock Holmes Judge Kastrenakes as Dr. Watson

Do you think it was reasonable for Attorney Fox to request a retainer of $100,000?

RULE 4-1.5 FEES AND COSTS FOR LEGAL SERVICES

Excessive Fees and Costs:

(1) lawyer left with firm conviction that fee or cost exceeds a reasonable fee to such a degree as to constitute clear overreaching unconscionable demand; or or an (2) the fee or cost is sought or secured by means of intentional misrepresentation or fraud upon the client, a nonclient party, or any court, as to either entitlement to, or amount of, the fee.

RULE 4-1.5 FEES AND COSTS FOR LEGAL SERVICES;

Factors to Be Considered

(A)time and labor required; novelty, complexity, difficulty; skill (B)likelihood acceptance of employment precludes other (C) the fee customarily charged in locality for comparable legal services; (D) significance of subject matter, responsibility involved, results obtained; (E) time limitations imposed by client or circumstances; (F) nature and length of professional relationship with client; (G) experience, reputation, diligence, and ability of lawyer and skill, expertise, or efficiency of effort reflected; and (H) whether the fee is fixed or contingent, and, if fixed, whether client's ability to pay rested significantly on outcome.

Baratta seemed surprised Fox sent him another bill.

Rule 4-1.5 (e) Fees & Costs for Legal Services (e) Duty to Communicate Basis or Rate of

Fee or Costs to Client. When lawyer has not regularly represented client, basis or rate of the fee and costs shall be communicated to the client, preferably in writing, before or within a reasonable time after commencing the representation. Nonrefundable fee shall be confirmed in writing explaining parties’ intent

Is it possible $100,000 fee was a nonrefundable fee?

Does this seem acceptable?

FL Bar Ethics Opinion 93-2

Presumption that prepaid fees are an advance deposit against fees for work yet to be performed. This is assumption typical client would make. Attorney should bear the burden of rebutting this presumption.

FL Bar Ethics Opinion 93-2 Is the money earned at the time it is received by the attorney?

A prepaid fee with express agreement it is nonrefundable is earned on receipt and should be deposited in attorney's general account, not trust account.

Lawyer may later be obligated to refund part or all of it, in which case the fee may be found to be excessive, but the money is the lawyer's upon receipt of it.

Prepaid fee may be given to attorney with understanding it is a deposit securing a fee yet to be earned. Such money does not belong to the lawyer, and should be held in trust until earned by performance of agreed-upon services.

Rule 5-1.1 Trust Accounts

A lawyer shall hold in trust, separate from the lawyer’s own property, funds and property of clients or third persons that are in a lawyer’s possession in connection with a representation. All funds, including advances for fees, costs, and expenses, shall be kept in a separate bank or savings and loan association account maintained in the state where the lawyer’s office is situated or elsewhere with the consent of the client or third person and clearly labeled and designated as a trust account.

Anything wrong with the steps Basil Rathbone took?

Rule 4-1.7 Conflict of Interest

(a) A Lawyer must not represent a client if

(1) representation of one client will be directly adverse to another; or (2) substantial risk that representation will be materially limited by lawyer's responsibilities to another client, a former client, a third person, or personal interest of the lawyer.

(b) Informed Consent. Notwithstanding a conflict, a lawyer may represent a client if: (1) the lawyer reasonably believes s/he will be able to provide competent and diligent representation to each affected client; (2) the representation is not prohibited by law; (3) the representation does not involve assertion of a position adverse to another client in the same proceeding before a tribunal; and (4) each affected client gives informed consent, confirmed in writing or clearly stated on the record at a hearing.

The Florida Bar v. Mark Rousso

117 So.3d 756 (2013) A conflict of interest arises when one client’s funds in a trust account are used to pay another client.

Prioritizing which client gets paid first presents a conflict of interest.

Rule 5-1.1 Trust Accounts

(a) Nature of Money or Property Entrusted to Attorney.

(1) Trust Account Required; Commingling Prohibited.

Lawyer shall hold in trust, separate from lawyer’s own property, funds and property of clients or third persons that are in a lawyer’s possession in connection with a representation. All funds, including advances for fees, costs, and expenses, shall be kept in a separate bank or savings and loan association account maintained in the state where the lawyer’s office is situated or elsewhere with the consent of the client or third person and clearly labeled and designated as a trust account.

Rule 5-1.2(b) Trust Accounting Records and Procedures Minimum Trust Accounting Records

(1) Separate bank or savings and loan association account in the name of the lawyer labeled "trust account"; (2) Deposit slips clearly identifying the date and source of all trust funds received and the client or matter for which the funds were received; (3) Canceled checks for all funds disbursed from the trust account; (4) Other documentary support for all disbursements and transfers; (5) All records regarding all wire transfers into or out of the trust account including the name of the client or matter for which the funds were transferred or received, and the purpose of the wire transfer, (e.g., “payment on invoice 1234” or “John Doe closing”).

(6)Separate cash receipts and disbursements journal; (7) Separate file or ledger with an individual card or page for each client or matter, showing all individual receipts, disbursements, or transfers and any unexpended balance; (8) All bank or savings and loan association statements for all trust accounts.

What degree of supervision of a non-lawyer bookkeeper over a lawyer’s trust account is necessary?

The Florida Bar v. Riggs

944 So.2d 167 (2006)

Due to failure to abide by trust account rules, paralegal stole a portion of the trust account funds, Court found attorney did not exercise the necessary care and discretion when he allowed non-attorney employees to handle the trust accounts without proper management. Attorney received a three year suspension.

RULES OF THE SUPREME COURT RELATING TO ADMISSIONS TO THE BAR

3-10.1 Essential Eligibility Requirements. The board considers the following attributes to be essential for all applicants and registrants seeking admission to The Florida Bar: c. ability to and the likelihood that, in the practice of law, one will: 3.conduct financial dealings in a responsible, honest, and trustworthy manner;

The Florida Bar v. Mark Rousso

117 So.3d 756 (2013) The Rousso Court considered the total amount of potential injury to clients, including the amount which was covered by the firm’s malpractice insurance carrier.

FL Bar Ethics Opinion 12-4

A lawyer may not maintain a single trust account for all real estate transactions and allow audits by multiple title insurers as required by Florida Statute § 626.8473(8) unless the lawyer has the consent of all affected clients or the lawyer reasonably concludes that it is necessary to serve affected clients’ interests and the affected clients have not prohibited the disclosure of the information.

Section 626.8473(8), Florida Statutes

(8) An attorney shall deposit and maintain all funds received in connection with transactions in which the attorney is serving as a title or real estate settlement agent into a separate trust account that is maintained exclusively for funds received in connection with such transactions and permit the account to be audited by its title insurers, unless maintaining funds in the separate account for a particular client would violate applicable rules of The Florida Bar.

Rule 4-1.6(a) Confidentiality

(a) Consent Required to Reveal

Information. A lawyer must not reveal information relating to representation of a client except as stated in subdivisions unless the client gives informed consent.

PREAMBLE TO THE RULES OF PROFESSIONAL CONDUCT PREAMBLE: A LAWYER'S RESPONSIBILITIES

"Informed consent" denotes the agreement by a person to a proposed course of conduct after the lawyer has communicated adequate information and explanation about the material risks of and reasonably available alternatives to the proposed course of conduct.

Rule 4-3.3 Candor to Tribunal

A lawyer shall not knowingly: (2) fail to disclose a material fact to a tribunal when disclosure is necessary to avoid assisting a criminal or fraudulent act by the client.

The Florida Bar v. Hines

39 So.3d 1196 (2010)

Attorney’s conduct in allowing a nonlawyer, whom the attorney neither employed, supervised, nor controlled, to have signatory authority over an escrow account the attorney opened to handle real estate closings, resulting in misappropriation of funds held in trust in the escrow account, violated Rule 4-5.3(b)(1) providing that a lawyer must make reasonable efforts to ensure that the conduct of a nonlawyer associated with the lawyer is compatible with the professional obligations of the lawyer

The End