FFICE MANAGEMENT PROCEDURES - Cengage Learning · 242 CHAPTER 11 Law Office Management and Procedures. professional relationship. Effective communica-tion and mutual trust are at

SUMMARY OF KEY CONCEPTS

Section 1. The Successful Law OfficeA successful law office:

• serves its clients effectively and efficiently;

• upholds ethical standards and brings creditto the legal profession; and,

• provides professional satisfaction and areasonable economic reward for its owners,managers, and employees.

Most attorneys and paralegals work in law firmsthat represent a variety of outside clients. In addi-tion to meeting the three criteria above, a law firmusually seeks professional prestige in the legal com-munity. A stellar “av” rating by professional peersin the Martindale-Hubbell Law Directory is a prizedachievement. A socially responsible firm will divertsome portion of its profits into pro bono legal serv-ices for the community and the less fortunate.

In a corporate law office, there is only oneclient—the corporation. Corporate legal depart-ments must justify their existence, so the quality oftheir services is equally important in that environ-ment. Often, the in-house counsel is able to mini-mize outside legal costs by providing legal adviceat less cost, but also by managing the use of out-side firms and carefully reviewing their bills.

Similar to a corporation, the law office in mostpublic agencies has a single client. It, too, will con-centrate upon the three essential traits of a suc-cessful practice. However, because it is supportedby tax dollars and is established to serve the pub-lic well-being, it should not confine its efforts tothe narrow parochial interests of the agency. Somepublic agencies are, in effect, public law firms: of-fices of the attorney general, county counsel, cityattorney, district attorney, public defender, etc. Aunique office is that of the public defender. Unlikeother government attorneys, they have a singleclient and duty—to vigorously represent the de-fendant in a criminal case.

Regardless of the setting, a successful lawpractice almost always rests upon the followingkey factors:

• dedicated and qualified professionals;

• effective law office organization;

• sound attorney-client relationships; and,

• efficient law office procedures.

Qualified, hard-working individuals who performtheir tasks in a professional manner are the most im-portant single factor in the successful law practice.For that reason, it is vital that they be treated withrespect and that they have the support they need toperform well. A reputation for high professionalstandards and enlightened management will, by

LAW OFFICE MANAGEMENTAND PROCEDURES

11 C H A P T E R

word-of-mouth, draw outstanding candidates forlaw firm positions.

Generally speaking, paralegals are at-will em-ployees of the firm or corporation. That meansthat they may be dismissed at any time withoutcause or explanation. Also, they are free to leave atany time. Unless state law requires otherwise, anat-will employment relationship may be termi-nated by either party without any advance notice.There are four circumstances when employmentwill not be at-will:

• when a statute prohibits some form ofdiscriminatory dismissal;

• when public policy does not permit arbitrarydismissal;

• when the employee and the employer haveagreed upon an indefinite period ofemployment, with termination to be “forcause” only; or,

• when the employee and the employer haveagreed upon a fixed period of employment,with termination to be “for cause” only.

Both state and federal statutes forbid employersfrom discharging employees for discriminatoryreasons (e.g., race, gender, disability, etc.). Thesestatutes modify the at-will employment. Even with-out a statutory protection, the state’s common lawpublic policy might not permit an employer to dis-charge an employee for some reasons (e.g., awhistleblower who reports his employer’s illegalconduct).

The employer might establish an implied con-tract that modifies the at-will relationship. This canhappen when the employer establishes a fixed pe-riod of “probationary” employment, during whichthe employee may be let go without explanation. Byimplication, satisfactory completion of the proba-tion period means that the employee is no longer aprobationary employee. The same effect can resultif the employer publishes a personnel policy whichprovides that employees will be dismissed for spec-ified causes (e.g., dishonesty, unsatisfactory per-formance, excessive absenteeism, etc.).

Many employers are advised by their attor-neys to publish a comprehensive personnel man-ual, which governs the working conditions, bene-fits, and employment relationship. This is advisedso that their personnel actions cannot be chal-lenged as arbitrary. A consequential effect, how-ever, is to create an implied employment contractthat can limit their personnel actions.

Every law firm should carry professional liabil-ity insurance, also known as an “errors and omis-

sions” policy. These policies usually cover all em-ployees of the firm, including paralegals. The basicpurpose of such policies is to protect the attorneyfrom claims of legal malpractice, but they mightcover other claims that arise in the course of prac-ticing law.

The ability of a law office to provide the high-est quality of professional services, and its abilityto function within a budget, are both impacted bythe way that the office is organized and managed.Even corporate and government law offices mustoperate within a budget. In the past, small lawfirms tended to be legal “general stores” for indi-viduals and small businesses. In recent years, how-ever, they have tended to specialize in one or twoareas of practice.

Sole practitioners are thought of as individualattorneys who practice alone in a small office, sup-ported perhaps by two or three employees. Manysole practitioners, however, share a suite of officeswith other attorneys, so that a single receptionist,law library, and word processor can serve them all.They share these overhead costs, but not their prac-tices or profits. In this arrangement, a legal assistantmight be employed by the attorney-landlord, butperform work on a contract basis for the other at-torneys, as well.

An attorney can be a sole proprietor of hispractice without being a sole practitioner. This ismade possible by employing associate attorneysto work under his general supervision. Theattorney/proprietor must pay all overhead costs,as well as the salaries of the associates, but he willkeep all profits to himself.

A law partnership can exist with as few as twoor three partners. In small partnerships, thedecision-making process tends to be collegial.Partners receive a share of the firm profits, but em-ployed associate attorneys do not. Partnership in-terests need not be equal. Any combination of eq-uity interests which adds up to 100% is possible.

In partnerships of a dozen or so, one partner isusually designated as the managing partner. Mostoften, this is one of the senior partners who has“paid his dues” in building the partnership’s prac-tice. The managing partner is responsible for theday-to-day operations of the office and might alsosupervise the associate attorneys.

As the size of the firm grows, the role of themanaging partner may become more important.She may have some responsibility for managingthe law practice of the firm by assigning juniorpartners and associates to handle various clientmatters. An alternative arrangement is the execu-tive committee composed of a small number of

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senior partners. In very large firms, there might bea variety of committees handling specific aspectsof the business and law practice.

Both sole practitioners and partnerships canincorporate their practice as a professional lawcorporation (PC). As mentioned in Chapter 2, a pro-fessional corporation can have individual attor-neys, attorney partnerships, and even smallerprofessional law corporations among its stock-holders. The primary advantage of the professionalcorporation is to limit the personal liability of thestockholders for the debts of the corporation. Acreditor can only claim assets of the corporation,not of its individual attorney-stockholders. In somestates, alternatives to the professional corporationare the limited liability partnership (LLP) and thelimited liability company (LLC). These two latterforms combine the tax advantages of a partnershipwith the liability limitations of a corporation.

A corporate legal department is completelydifferent from the professional law corporation de-scribed previously. It is simply one of many de-partments in a non-legal corporation. Severaltypes of enterprises are especially likely to main-tain their own corporate legal departments—thosefrequently sued, and those which require a sub-stantial amount of legal services in the ordinarycourse of business. Corporations involved in liti-gation generally retain outside legal counsel to rep-resent them in court, but often use their corporatelegal department for:

• responding to discovery requests;

• coordinating litigation matters with outsidecounsel;

• reviewing (and questioning) bills presentedby the outside counsel; and,

• advising management on ways to avoid futurelawsuits.

An attorney from the corporate legal departmentmight also sit second chair during the trial.

Corporations generally designate one attor-ney to serve as general counsel. The general coun-sel can be the head of the corporate legal depart-ment, or can be an outside attorney retained forthat purpose. An in-house general counsel oftenholds the rank of vice president. In addition to ad-vising management and coordinating with outsidecounsel, legal departments often monitor devel-opments in legislation and government rule-mak-ing, and may coordinate the corporation’s lobby-ing efforts. Legal assistants in corporate legaldepartments assume a wide variety of responsi-bilities. A key role is preparing and maintaining

the official documents and records of the corpo-ration, including:

• corporate by-laws;

• minutes of directors’ meetings;

• resolutions adopted by the board ofdirectors;

• stock registration statements;

• shareholder records;

• notices of shareholder meetings;

• proxy statements; and,

• stock option plans.

Another legal assistant in the corporate legal de-partment might have totally different responsibili-ties, such as coordinating with outside counseland responding to discovery requests. Paralegalstypically have the hands-on task of monitoringpending legislation and rule-making.

Public agency legal departments serve pur-poses for those agencies that are very similar tothe purposes of a corporate legal department—litigation and routine legal services being the pri-mary purposes. Public agencies, particularly smallones, sometimes retain outside law firms to serveas their primary legal counsel, the equivalent of acorporation’s general counsel. Larger agenciesusually have an in-house chief counsel.

In most law offices, paralegals and legal secre-taries are part of the legal team that provides serv-ices for clients. In larger offices, the legal teammight include law clerks, legal librarians, and para-legal managers. The ultimate responsibility for co-ordinating the team effort rests with the attorneyresponsible for that client matter. In large-scale lit-igation, a senior firm partner may serve as the at-torney of record and supervise partners and asso-ciates who work on the case.

In many large law firms, other non-attorney pro-fessionals play a major role. These include paralegalmanagers, law office managers, and legal adminis-trators. Law office managers generally supervisethe office support staff—receptionists, secretaries,word processors, file clerks, etc. Legal administra-tors assume even more responsibilities, such as tak-ing on a role similar to a managing partner, otherthan managing the firm’s practice of law.

Earlier chapters discussed the attorney-clientrelationship as it relates to privileged communica-tions, ethical obligations to the client, and theclient’s right to legal counsel. Another importantaspect is the professional and businessrelationship—how legal services are provided tothe client and how the client pays for those serv-ices. Certainly, ethical obligations are part of the

242 CHAPTER 11 � Law Office Management and Procedures

professional relationship. Effective communica-tion and mutual trust are at the heart of a sound at-torney-client relationship. Mutual trust is essentialso that the communication is open and forthright.

When a client retains an attorney, it is custom-ary, and required in some jurisdictions, that the at-torney and client sign a retainer agreement thatidentifies the legal matter for which the attorney isbeing retained and sets forth the fees the clientagrees to pay. Some law firms work on a contin-gency fee basis, which means that the law firm re-ceives nothing unless the client recovers money. Ifthe client’s case is lost, the client owes nothing,and the law firm receives nothing. The contingencyfee is usually a fixed percentage of any monetaryaward won in court or negotiated in a settlement.

The most common fee arrangement is based onhourly rates for the attorneys and paralegals whowork on the case. The client is then billed monthlyfor the time these professionals have spent on thatclient matter. Hourly rates for paralegals varywidely with their experience and qualifications, andalso among different regions of the nation. Some lawfirms have annual quotas for the hours billed byeach legal professional. These quotas are generallyin the range of 1400 to 1800 hours per year for para-legals, but there appears to be an upward trend inthose expectations. Unlike attorneys, paralegalscannot become “rainmakers,” bringing in new clientbusiness. Instead, they are dependent upon attor-neys for their assignments.

Most law firms keep time records in incrementsof six minutes. That is considered a “unit” of timeand is the minimum which will be billed for any task,such as a short phone call. Other firms use units often minutes, and a few very large firms bill in unitsof fifteen minutes. The larger the billing unit, theeasier it is to meet a given quota of billable hours.

Whether kept the “old fashioned” way on pa-per time sheets, or entered in the computer as thelegal assistant completes each discrete task onclient matters, the units of time and the corre-sponding task descriptions are fed into the firm’scomputerized billing system. After the close of themonth, it usually takes a week or two to prepare astatement for mailing to the client. The prepara-tion includes these stages:

• a billing clerk consolidates all billed time foreach client matter;

• a tentative itemization of billed time isprinted;

• the responsible attorney reviews and correctsthe itemization; and,

• a final itemization is printed with a summaryof all fees and costs.

A critical part of this process is the attorney’s re-view of the tentative itemization for billed time.The attorney might revise the description so thatit is more understandable to the client, and to re-flect the professional nature of the task. The attor-ney might also “write off” (i.e., delete) or writedown (reduce) some of the time billed by attor-neys or paralegals. Any time written off will eithernot appear on the client’s statement, or will appearwith a “no charge” notation.

The billing clerk also consolidates all of thefirm expenses which are chargeable to the client.These typically include:

• long distance telephone charges;

• Westlaw or LEXIS online fees;

• postage and messenger fees;

• court filing fees and recording fees;

• photocopies; and,

• mileage and parking fees.

Some firms also charge a flat fee for facsimiletransmissions.

From time to time, an attorney might receivefunds on behalf of clients that are then held tem-porarily for the benefit of the client. These fundsmay be from litigation settlements, insurance set-tlements, escrow funds in real estate transactions,the corpus (i.e., principal amount) of a trust, etc.As a fiduciary, the attorney holds these clientfunds in trust. The bank account where they areheld must be a client trust account, and the fundsmay never be commingled with the law firm’sfunds, nor used by it for any purpose.

The client, the law firm, and the departing at-torney are presented with a dilemma when an at-torney decides to leave the firm to strike out on hisown or to join a different firm. This circumstance isbecoming more common as many firms, for eco-nomic reasons, restrict the opportunity for an as-sociate to make partner status in that firm.

The answer to the dilemma boils down to threequestions:

• Is it the firm’s client, or the attorney’s client?

• Does an attorney breach his fiduciary duty tohis former firm if he takes clients with him?

• What are the rights of the client?

In ethical terms, the last question is the most impor-tant. The short answers to all three questions are:

• The client doesn’t “belong” to either the firmor the attorney.

• Although the departing attorney may havefiduciary duties to his former law firm, those

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duties cannot override the client’s right tochoose his own attorney.

• “The customer is king” (or queen, as the casemight be).

The client may decide to stay with the firm, go withthe departing attorney, or find other legal counsel.If he goes with the departing attorney, or choosesa new counsel, the law firm must forward all of hisclient files to that attorney.

Section 2. Effective Law OfficeProceduresOne indicator of good law office management is theuse of sound office procedures. Effective law officeprocedures will serve these purposes:

• the efficient and economical delivery of clientlegal services;

• compliance with all statutes of limitations andcourt deadlines;

• the protection of client confidences;

• positive working relationships with personsoutside of the office;

• an atmosphere of order and structure in theworkplace; and,

• smooth working relationships within the office.

It is the use of sound procedures that makes thesethings possible. It does no good if procedures areproclaimed but not implemented. A well-managedoffice will have an office “policies and procedures”manual that governs the day-to-day practice of lawand the related support operations.

Before accepting a new client, the firm mustperform a thorough conflict check to ensure thatthere is no conflict of interest created by acceptingthe new client matter. If a conflict is discovered, thefirm must either decline to accept the new client, orobtain the consent of the both the old and the newclient to waive the conflict. Conflict checks are usu-ally done with computers, so it is imperative thatclient names be entered accurately and in variousformats so that no conflict is missed.

A law office docket is the firm’s calendar ofdeadlines and important events. Of greatest con-cern are the deadlines established by statute, courtrules, and court orders. The most critical is thestatute of limitations, since it can be exceedinglydifficult to obtain court approval to file a belatedlawsuit. The docket should also track deadlines fordiscovery, dates of depositions and court appear-ances, dates for closing escrow, etc. The docket

also operates as a tickler system, to alert attorneysand paralegals of an approaching deadline.

Law offices typically maintain at least six typesof files, including client files, billing records, per-sonnel records, and correspondence unrelated tospecific client matters. A file is opened for each newclient matter. The same client may have multipleclient matters, and a separate file is kept for each.

There are two basic systems for organizingclient files: alphabetical and numerical. The alpha-betical system is well-suited to a sole practitionerand other small law offices. However, many largerfirms find it more useful to assign a unique numberto each client matter and maintain the files in nu-merical order. The advantage of a numerical sys-tem is that it can be set up to reveal additional in-formation about each client matter: the date thefile was opened; the responsible attorney; the na-ture of the legal matter; etc.

It is very common for the client and other lawoffices to request copies of materials in a client’sfile. Law offices should have a strict policy aboutthe release of client materials—even to the client,herself. Most firms require that an attorney’s ap-proval be obtained to release any client materials.This is intended to prevent the improper disclosureof documents or information to outside parties. Forexample, a client may unintentionally, and unwit-tingly, waive the attorney-client privilege by show-ing a document to someone else. Some firms givelegal secretaries or paralegals standing authority torelease certain categories on non-sensitive docu-ments (e.g., pleadings which have been filed with acourt).

Eventually, most client files become inactive. Itmakes no sense to consume large amounts of officespace with file cabinets or boxes of inactive files.The solution is to close any file that has been inac-tive for a defined period of time and is not ex-pected to become active again within the comingyear. Closed files are usually stored in a differentlocation where they are secure and protected byautomatic sprinklers. Eventually, the firm may of-fer to deliver the file to the client’s possession,with notice that the file will be destroyed if theclient declines to accept it. Files are destroyed byshredding. Companies which specialize in the stor-age and destruction of confidential files will pro-vide written certification of their destruction.

When legal assistants use any mode of externalcommunications (e.g., telephone, e-mail, facsimile,U.S. Mail, or commercial delivery services) threeconsiderations must be kept in mind:


• confidentiality and security;

• clarity of the communication; and,

• professional tone of the communication.

The most important of these is confidentiality andsecurity. Clarity is essential so that the messagewill be understood. A professional tone causes therecipient to give the message his serious attention.

REVIEW QUESTIONS1. New employees are generally considered to

be __________ employees, which means thatthe employment relationship can beterminated at any time by either theemployee or the employer.

2. There are four circumstances under which anemployer may not terminate an employeewithout good cause:

• when a statute prohibits some form of__________ dismissal;

• when __________ does not permit anarbitrary dismissal;

• when the employee and the employer haveagreed upon an __________ period ofemployment, with termination to be “forcause” only; or,

• when the employer and employee haveagreed upon a __________ period ofemployment, with termination to be “forcause” only.

3. In employment law, __________ cause is aprinciple requiring an honest and reasonablebasis for the discipline or dismissal of anemployee. This principle does not apply,however, unless it is established by statute oran employment contract.

4. During a __________ period, one is a true at-will employee. After satisfactory completionof that period, however, the employer has byimplication created a different status.

5. Every firm should carry __________insurance, also known as an errors andomissions policy.

6. In recent decades, sole practitioners andsmall law partnerships have gravitatedtoward a “__________” style of law firm whichspecializes in one or two areas of practice.

7. Partners who receive a share of the profitsare known as __________ partners becausetheir ownership interest entitles them to thatshare.

8. Larger law firms often establish an __________committee of partners to oversee themanagement of the firm.

9. A __________ law corporation can be a solepractitioner or a law partnership organized asa corporate entity. The primary advantage isto limit the __________ of its attorneystockholders.

10. Corporations that are frequently __________are likely to maintain their own legaldepartment.

11. Corporations generally designate a particularattorney to serve as the corporation’s__________ counsel.

12. Corporate law paralegals generally maintain:

• corporate __________;

• __________ of the board of directors;

• resolutions adopted by the __________;

• __________ records; and,

• __________ statements.

13. The client for most public agency attorneys isthe __________.

14. The client for a public defender is __________.

15. In the larger firms with a hundred or soattorneys, a non-attorney legal administratormay assume many of the responsibilities a__________ has in mid-sized firms.

16. When a client hires an attorney, it iscustomary for her to sign a __________agreement, which identifies the legal matterfor which the attorney will represent her andsets forth the fees she will pay for thoseservices.

17. Under a __________ fee agreement, the lawfirm will be paid only if the client recoversmoney. If the client’s case is lost, the clientowes nothing and the law firm receivesnothing.

18. Unlike attorneys, legal assistants cannotbecome “__________,” bringing in new clientbusiness.

19. Before detailed bills are sent to the client, theresponsible attorney reviews them, and often“__________” (deletes) or “__________”(reduces) some of the time billed byattorneys and paralegals.

20. Client funds must be kept in a __________account, separate from the law firm’s monies.

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21. When an attorney leaves the law firm, hisclients have three choices:

• __________;

• __________; or,

• __________.

22. A law firm docket is the firm’s calendar of__________.

23. There are two basic systems for organizingclient files, __________ and __________.

KEY TERMSat-will employment

Your “best effort” definition:

Your revised definition:

chief counsel



client trust account



docket



errors and omissions policy



executive committee



general counsel



limited liability corporation



limited liability partnership



probationary employee



retainer agreement



WORKING ON-LINEGo to the Web site for the American Bar Association:

http://www.abanet.org

Follow the link for “Legal & Professional Re-sources” and find your way to the page for theABA’s Center for Professional Responsibility. Fromthere, select “Formal Ethics Opinions Headnotes,”and review the headnotes that relate to law firmmanagement, the obligations of an attorney leav-ing a law firm, and client fees.

ETHICAL CHALLENGEEartha Jankowski recently left the law firm of Ar-don & Fillips and moved to Marsh, Muntz &Cubana. Her new firm is defending a client, XBOCorporation, against a lawsuit brought by a share-


holder who is a client of Ardon & Fillips. AlthoughArdon does not represent that client in this partic-ular matter, Eartha’s new firm has erected an “eth-ical wall” to isolate Eartha from any possible expo-sure to the lawsuit. The firm even notified thecourt of the situation and without objection fromArdon, the court approved the precautions takenat Marsh.

At a recent social gathering, Eartha ran intofriends from Ardon & Fillips and had a great timecatching up on the news. Later in the evening,Eartha entered the ladies’ room just in time to hearone Ardon secretary say to another, “I hear theclient is hoping that XBO will just pay him to goaway. Jim even thinks the guy perjured himself inhis depo, but there’s no way to be absolutely sure.”In confusion, Eartha quickly backed out the doorand mingled with the crowd.

What should Eartha do with this information?

ETHICAL ANALYSISOf course, this is a classic example of loose talk bysomeone who should know better, but that doesn’tsolve Eartha’s issue. As troubling as it may be to letsomeone get away with perjury, Eartha has nochoice but to keep the incident to herself. She hasan ethical duty to Ardon, her former employer, tokeep confidential anything she learned about theirclients. Although this new knowledge has been ac-quired after leaving Ardon, Eartha would have toviolate the court-approved ethical wall to commu-nicate the information to anyone at Marsh. Shemight even jeopardize Marsh’s continued repre-sentation of its client if the court were somehow tolearn of her disclosure.

READING CASE LAWThe full text of In re Micheel, 610 A.2d 231 (D.C.1992) follows. A hearing committee of the Districtof Columbia Bar found that attorney Micheel hadmisappropriated client funds and recommendedhis suspension from the practice of law for twomonths. The Board on Professional Responsibilityaccepted the committee’s finding of misappropria-tion, but recommended disbarment. The U.S. Courtof Appeals for the D.C. Circuit adopted the Board’srecommendation. The threshold issue before thecourt was whether the Board should have deferredto the hearing committee’s finding that the misap-propriation was negligent, not dishonest conduct.

As a general rule, an appellate court considersquestions of law and procedure, the facts havingbeen determined, once and for all. In this case, how-

ever, the Court of Appeals distinguishes between“subsidiary findings of basic facts” and findings of“ultimate facts.” The court equates the latter to con-clusions of law, which makes them reversible.

Read Micheel with special attention to thecourt’s reasoning regarding the nature of Micheel’smisconduct, which led it to order his disbarment.

ANSWERS TO REVIEWQUESTIONS

1. New employees are generally considered tobe at-will employees, which means that theemployment relationship can be terminatedat any time by either the employee or theemployer.

2. There are four circumstances under which anemployer may not terminate an employeewithout good cause:

• when a statute prohibits some form ofdiscriminatory dismissal;

• when public policy does not permit anarbitrary dismissal;

• when the employee and the employer haveagreed upon an indefinite period ofemployment, with termination to be “forcause” only; or,

• when the employer and employee haveagreed upon a definite period ofemployment, with termination to be “forcause” only.

3. In employment law, just cause is a principlerequiring an honest and reasonable basis forthe discipline or dismissal of an employee.This principle does not apply, however,unless it is established by statute or anemployment contract.

4. During a probationary period, one is a true at-will employee. After satisfactory completionof that period, however, the employer has byimplication created a different status.

5. Every firm should carry professional liabilityinsurance, also known as an errors andomissions policy.

6. In recent decades, sole practitioners andsmall law partnerships have gravitatedtoward a “boutique” style of law firm whichspecializes in one or two areas of practice.

7. Partners who receive a share of the profitsare known as equity partners, because theirownership interest entitles them to thatshare.

STUDY GUIDE � 247

8. Larger law firms often establish an executivecommittee of partners to oversee themanagement of the firm.

9. A professional law corporation can be a solepractitioner or a law partnership organized asa corporate entity. The primary advantage isto limit the personal liability of its attorneystockholders.

10. Corporations that are frequently sued arelikely to maintain their own legal department.

11. Corporations generally designate a particularattorney to serve as the corporation’s generalcounsel.

12. Corporate law paralegals generally maintain:

• corporate by-laws;

• minutes of the board of directors;

• resolutions adopted by the board ofdirectors;

• shareholder records; and,

• proxy statements.

13. The client for most public agency attorneys isthe employing agency.

14. The client for a public defender is theindividual he is defending.

15. In the larger firms with a hundred or soattorneys, a non-attorney legal administratormay assume many of the responsibilities amanaging partner has in mid-sized firms.

16. When a client hires an attorney, it iscustomary for her to sign a retaineragreement, which identifies the legal matterfor which the attorney will represent her and

sets forth the fees she will pay for thoseservices.

17. Under a contingency fee agreement, the lawfirm will be paid only if the client recoversmoney. If the client’s case is lost, the clientowes nothing and the law firm receivesnothing.

18. Unlike attorneys, legal assistants cannotbecome “rainmakers,” bringing in new clientbusiness.

19. Before detailed bills are sent to the client, theresponsible attorney reviews them, and often“writes off” (deletes) or “writes down”(reduces) some of the time billed byattorneys and paralegals.

20. Client funds must be kept in a trust account,separate from the law firm’s monies.

21. When an attorney leaves the law firm, hisclients have three choices:

• Go with the departing attorney;

• Stay with the law firm; or,

• Choose new legal counsel.

22. A law firm docket is the firm’s calendar ofdeadlines and important events.

23. There are two basic systems for organizingclient files, alphabetical and numerical.


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FFICE MANAGEMENT PROCEDURES - Cengage Learning · 242 CHAPTER 11 Law Office Management and Procedures. professional relationship. Effective communica-tion and mutual trust are at