Professional Responsibility

Week 7

• For MPRE, we should consider a separate review class because the questions are tricky.
• Rule about acquiring an interest in client property-- there are no WI cases. The closest thing is lawyers trying to get clients to invest in their businesses, not the other way around. So it is still a little unclear what that rule is supposed to prevent.
• Non-refundable fees are disfavored. Again, not much case law in WI, but you can be disciplined for this.
• Need for discipline to instruct violators about the importance of a properly working legal system.
• Rule 1.15: Safekeeping of property and documents.
  Walk-through of ABA version
  • Hold property separately
  • Be carefule about trust account service charges
  • Pre-payment for hours to be worked off
  • Third parties might have an interest in the property you're holding (also clients). You need to notify promptly and disburse it right away. Someone's claim against your client doesn't mean a claim against this specific money: only a bona-fide claim against this specific property is grounds for witholding it.
• Pretty much everyone practicing law has to have trust accounts, and has to report on them for annual bar membership renewal. Retired lawyers and government lawyers are exempt from this.
• The WI rule is very long. IOLTA interest goes to the bar for representation for indigent clients.
• Note that WI distinguishes between IOLTA accounts and fiduciary accounts.
• Both WI and ABA recommend record retention about accounts (WI says 6 years, ABA says 5); presumably the clock starts at the termination of representation. Note that disciplinary proceedings can be initiated up to 10 years, so you should retain 10 years, not just 6. You wouldn't violate this rule via 6, but you'd have other issues.