Managing Client Files in your Law Practice

Managing Client Files
Frank Harber
Jennifer Kohl
Heather Flores-Ricks

1. Managing Client Files Law Practice Management
Frank Harber
Heather Flores-Ricks
Jennifer Kohl
In PrintOnline Ethical Concerns
Managing Client Files
Law Practice Management
Frank Harber
Heather Flores-Ricks
Jennifer Kohl

2. Managing Client Files Law Practice Management
Frank Harber
Heather Flores-Ricks
Jennifer Kohl
Managing Client Files –An Overview
•A Client Walks Into A Law Office
•The Client File Begins
•The Physical Paper File
•Recommended File Structure
•Filing Systems (Alpha ~ Numeric ~ Color Coded)
•Electronic File Storage
•Naming Files
•Backup (When ~ Where ~ How)
•The Paperless Office
•Ethical Concerns
•File Retention & Purging
•Cloud Storage
•Client’s Property (Keeping it & Releasing It)

3. Managing Client Files Law Practice Management
Frank Harber
Heather Flores-Ricks
Jennifer Kohl
Frank’s Section
•Copy as many of these slides as you
need.

4. Managing Client Files Law Practice Management
Frank Harber
Heather Flores-Ricks
Jennifer Kohl
Heather’s Section
•Copy as many of these slides as you
need.

5. Managing Client Files Law Practice Management
Frank Harber
Heather Flores-Ricks
Jennifer Kohl
Ethical Concerns in File Management
•Cloud Storage
•Closing Files
•Destroying Files
•Client Property
•Releasing Files
The Key = Have a Plan!

6. Managing Client Files Law Practice Management
Frank Harber
Heather Flores-Ricks
Jennifer Kohl
Cloud Storage
•What is the “cloud”?
What are courts saying about it?
American Bar
Association
Court Opinions
Regarding Cloud
Storage in Legal
Settings
Outcome?
It Looks Good!

7. Managing Client Files Law Practice Management
Frank Harber
Heather Flores-Ricks
Jennifer Kohl
Types of Client Files
•Prospective Client File
–No fee agreement; no agreement that you are their attorney representing them
–Keep letters rejecting client or matter here
•Active Client File
–Currently working on; work has been done or needs to be done
–Not paid in full.
•Inactive Client File
–You have done the work and you have been paid in full –but you are keeping it open
for a reason
–EX: Just drafted a will for a 96 yr old or Formation of a new business entity
•Closed Client File
–Work is complete and you have been paid
–No reasonable expectation of work in the future
–Client notified
•Destroyed Client File
–It’s gone!
Foonberg

8. Managing Client Files Law Practice Management
Frank Harber
Heather Flores-Ricks
Jennifer Kohl
Closing Files –The Basic Rules
•Return Client Property to Client
•Always Preserve Confidentiality
•Protect Yourself & Protect Your Client
•Notify ~ Notify ~ Notify!

9. Managing Client Files Law Practice Management
Frank Harber
Heather Flores-Ricks
Jennifer Kohl
Quick Tip!
When Closing A File
Rename the file with the
year it was closed.
This will help you determine
when it is “ripe” for destruction.

10. Managing Client Files Law Practice Management
Frank Harber
Heather Flores-Ricks
Jennifer Kohl
Client’s Property
•Safekeeping
–Rules of Professional Conduct (1.14)
–Keep separately from your property
–Keep detailed records
–5 years at minimum

11. Managing Client Files Law Practice Management
Frank Harber
Heather Flores-Ricks
Jennifer Kohl
Client’s Property
•Returning Client Files
–Supreme Court of Texas, Professional Ethics Committee,
Opinion No 570, May 2006
–Everything (including lawyer’s notes/ work product)
–Exception: Court order; Releasing them will violate a duty
to a third person or risk causing serious harm to the client.

12. Managing Client Files Law Practice Management
Frank Harber
Heather Flores-Ricks
Jennifer Kohl
Quick Tip!
Always ask clients and
potential clients to bring
COPIES to you so that
you don’t have originals.
If you need originals for trial,
evidence, etc –ask then!

13. Managing Client Files Law Practice Management
Frank Harber
Heather Flores-Ricks
Jennifer Kohl
Closing The File
You Never Represented the Client
–Only notes or intake forms in file
–Make sure you have no original property
–Send a non-engagement letter (Sample)
–Destroy the file when SOL runs out on professional
malpractice
•See Texas Civil Practice and Remedies Code §16.003

14. Managing Client Files Law Practice Management
Frank Harber
Heather Flores-Ricks
Jennifer Kohl
Closing The File
You Represented the Client and
You Have Been Paid
–Exam file piece by piece –remove anything that
belongs to client
–Return client’s property to them
•EX: Mortgages, original evidence, wills, leases, items bearing
original signatures
–Include a cover letter with property OR
–If no property to return, send a disengagement letter
•Sample Disengagement Letter / See also Foonbergp478

15. Managing Client Files Law Practice Management
Frank Harber
Heather Flores-Ricks
Jennifer Kohl
Your Closing/Disengagement Letter
•Make sure it includes:
–Case file is closed in your office
–You will do nothing further
–You may destroy file in future without
any further notice to client
–Client should contact you if there is any
info your client should want
–Satisfaction survey (Proof of Receipt!)

16. Managing Client Files Law Practice Management
Frank Harber
Heather Flores-Ricks
Jennifer Kohl
Quick Tip!
If you have not been paid,
do not “close” the file
until you have given up
all hope of being paid!
Foonberggave an example of
14 years to receive $85,000

17. Managing Client Files Law Practice Management
Frank Harber
Heather Flores-Ricks
Jennifer Kohl
What if…
•Your client “disappears” before you
close the file?
–Act as if he has not disappeared.
–Send a disengagement letter
–Wait for a response
–You have to use “reasonable” means to locate
them
–Destroy according to retention schedule

18. Managing Client Files Law Practice Management
Frank Harber
Heather Flores-Ricks
Jennifer Kohl
Record Retention Plan
•Put it in writing!
•Share it with malpractice carrier and
local ethics committee (CYA!)
•If you go against your plan,
document it!
•The type of record may matter

19. Managing Client Files Law Practice Management
Frank Harber
Heather Flores-Ricks
Jennifer Kohl
Record Retention Plan
•Criminal Matters: As long as client is incarcerated
or case is on appeal
–CA and NJ = as long as client is alive
•Minors: Until 4 years after reaching majority
•Adverse Possession : At least 25 years after
possession commences
•Estate Planning: Until client’s death plus 4 years
For More Specifics: Read This

20. Managing Client Files Law Practice Management
Frank Harber
Heather Flores-Ricks
Jennifer Kohl
Destruction of Client Files
•Return any client property
•Make sure you have sent a disengagement
letter
•Shred, Shred, Shred!
–Mobile Document Shredding
•Fair & Accurate Credit Transaction Act (FACTA):
Consumer information? Take “reasonable measures”
to protect against unauthorized use of the
information in connection with it’s disposal.

21. Managing Client Files Law Practice Management
Frank Harber
Heather Flores-Ricks
Jennifer Kohl
Quick Tip!
Fondle Your Files!

22. Managing Client Files Law Practice Management
Frank Harber
Heather Flores-Ricks
Jennifer Kohl
Quick Tip!
Working on a Mac?
www.macattorney.com