LAW OFFICE MANAGEMENT FOR PARALEGALS: UNDERSTANDING YOUR ROLE WITHIN A LAW FIRM Presented by: Peggy Gruenke Owner – LegalBizSuccess ABA GP Solo/ Small Firm Division, Chair Technology Committee @PeggyGruenke on Twitter www.legalbizsuccess.com 2/18/2015 Peggy Gruenke | LegalBizSuccess | [email protected]1
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LAW OFFICE MANAGEMENT FOR
PARALEGALS: UNDERSTANDING YOUR
ROLE WITHIN A LAW FIRM
Presented by: Peggy Gruenke
Owner – LegalBizSuccess
ABA GP Solo/ Small Firm Division, Chair Technology Committee
Law Practice ManagementEconomics of a Law Practice
Flat Fee Profit/Lose Tracking
Hours worked Expenses Avg Rate Total Cost
Flat Fee
Quoted Profit/Lose
Case #1 5.5 $50.00 $185.00 $1,067.50 $500.00 -$567.50
Case #2 3.5 $125.00 $185.00 $772.50 $750.00 -$22.50
Case #3 5 $75.00 $185.00 $1,000.00 $750.00 -$250.00
Case #4 17 $275.00 $185.00 $3,420.00 $2,200.00 -$1,220.00
Case #5 7.5 $125.00 $185.00 $1,512.50 $2,000.00 $487.50
2/18/2015 23
Basic Law Firm Business Operations =
Law Practice ManagementEconomics of a Law Practice
Financial Effect of Not Recording Time
Billing rate $185.00Per Minute $3.08
If you lose 15 minutes per day $46.25Per day
5 days per week $231.25Per week
48 weeks $11,100.00Per year
Financial Effect of Not Recording Time
Billing rate $185.00Per Minute $3.08
If you lose 45 minutes per day $138.75Per day
5 days per week $693.75Per week
48 weeks $33,300.00Per year
2/18/2015 24
Your Role in Client Engagement and Managing
Cases
Create Checklists to Increase Efficiency
• Client Screening Forms
• Client Intake Forms• Basic Forms
• Develop Practice area specific
• Divorce
• Bankruptcy
• Foreclosure
• Collections
• Evictions
• Estate Planning
• Open File Checklists
• Closed File Checklists
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Your Role in Client Engagement and Managing
Cases
Open File/New Matter Checklists
• Conflict Check Completed
• New or Existing Client
• File/Matter Number Assigned
• Client Contact Information
• Other contacts, judges, attorneys
• Assigned to Attorney
• Entered into Practice Management System
• Paper file and electronic folders created
• Practice Area
• Billing Rate/Fee
• Engagement Letter Returned/Signed
• Deadlines and dates docketed on calendar
2/18/2015 26
Your Role in Client Engagement and Managing
Cases
Close File Checklists
• A file cannot be closed until all outstanding fees are paid or discharged.
• A file cannot be closed until there is a final distribution and accounting of all trust account balances relating to the file.
• Determine the Appropriate Retention Period for the Matter
• Purge Files of Certain Non-Essential Documents
• Return Original Client Documents
• Advise Client in Writing of His/Her Opportunity to Obtain Copies
• Advise Client of Anticipated Destruction Date
• Maintain Firm File of Such “Closing Letters”
• Store Files so as to Protect Client Confidence
• Destroy Files in a Manner Designed to Protect Client Confidences.
2/18/2015 27
Client Engagement and Setting the Stage
1. Initial Client Meetings
• Develop New client welcome packets/folders
2. Using Engagement Letters as a:
• Client service tool
• Financial management tool
• Risk management tool
3. Types of Engagement Letters
• Hourly Fee Agreements (sample included)
• Flat Fee Agreements
• Contingent Fee Agreements
• Pro Bono Agreements (sample included)
2/18/2015 28
8 Components to Include in Engagement Letters
1. Who is the client and what legal services are you providing
2. How will you handle the situation of a conflict arising during representation?
3. Attorney’s duty to protect the confidentiality of email communications with one’s clients.
4. Fees: Is this a flat fee case, hourly or contingent (which requires a special fee agreement)?
• What does your flat fee include? Are expenses included?
• What is your hourly rate, your paralegal’s hourly rate?
5. Expenses: what kind of out of pocket expenses will the firm incur and pay on the client’s behalf, if any. List these types of expenses. For example, a client may have no idea that it actually costs $280 to file a document with the court.
2/18/2015 29
8 Components to Include in Engagement Letters (con’t)
6. Retainer requested
7. Billing and Payments:
• Monthly, quarterly; via email or regular mail;
• Forms of payments you accept;
• What happens when the account becomes past due;
• Do you charge interest on past due accounts;
• Can you terminate the relationship, withdrawing under
applicable rules of professional conduct, for failure to pay
invoices.
2/18/2015 30
8 Components to Include in Engagement Letters (con’t)
8. File retention policy and termination:
• How long you will retain documents, in what form
(electronic vs. hardcopy);
• Maintaining confidentiality of the documents retained.
• Add a sentence allowing you room to terminate this
agreement in the case of non-payment or the client has
become difficult to work with.
• If client terminates the relationship, outline their
responsibility of payment of legal services rendered and
expense incurred before termination.
2/18/2015 31
Non-Engagement and Disengagement Letters
Non-Engagement Letters
• Avoids the problem of the “unintended client” and
potential malpractice claims
• What to include in the letter• Must clearly state that the lawyer has not been engaged by and does
not represent the client in the matter
• Notify the would-be client that there may be time limitations that apply to
their matter and they should seek legal advice from another attorney
Disengagement Letters
• Sent when relationship has deteriorated
• Client does not pay bills
• Lawyer has withdrawn from case
2/18/2015 32
Your Role in Risk Management
Helping Manage Risk in a Law Office
• Learn the practice management software.
• Know the clients, cases and contacts at courts.
• Help track expenses for client cases.
• Setup a document/file management system.
• Manage a system for tracking engagement letters.
• Use your calendar and set up a system for managing statute of
limitations.
• Understand conflicts of interest.
• Help maintain good client relations.
• Assist attorney in confirming all important questions and decisions
in writing.
2/18/2015 33
Your Role in Risk Management
Helping Manage Risk in a Law Office
• Triple check all outgoing documents and files.
• When clients drop off documents, get signed acknowledgement.
• Return original client documents ASAP.
• Do adequate research.
• Maintain high ethics and standards.
• Stay up-to-date on technology and ethics related to online marketing.
• Under revised ABA Model Rules of Professional Conduct (08/2102
from the Ethics 20/20 Task Force)
2/18/2015 34
Understanding Cloud Computing for Legal
Professionals –An Overview of Terminology and
Definitions
What is Cloud Computing
• Cloud computing is computing delivered as a service over
the Internet, with less need for software on your desktop
computer.
• Shift to cloud-based services typically offers increased
security, reduced overhead and IT costs
• First cloud based technologies:
• Hotmail
• Yahoo mail
• Gmail
2/18/2015 35
Understanding Cloud Computing for Legal
Professionals
Figure 1 2013 ABA Legal Technology Survey Report.
2/18/2015 36
Benefits of Cloud Computing
1. Low cost of entry and predictable monthly expense
• Cloud computing’s cost savings are largely driven by reduced
hardware and software costs.
2. Robust data back-up and recovery
• Cloud computing offers a level of security and data protection
superior to on-premise solutions.
• Cloud computing vendors typically store data in highly secure,
specialized data centers.
• Most cloud computing providers will offer geographically
redundant storage of your data, meaning your data will remain
intact and secure even if a data center suffers a catastrophic
failure.
2/18/2015 37
Benefits of Cloud Computing
3. Budgeting • Fixed monthly costs
• Avoids the emergency situation of having to quickly buy a new server
installing it and hoping you can recover all of your data.
4. Scalability/Mobility • Cloud computing offers “live” access to your cloud computing software
and data via a mobile-optimized website or application.
5. Ease of Use • One of the biggest benefits of cloud-based solutions is the speed at
which they can typically be deployed into a law firm.
2/18/2015 38
Ethics and Security of Cloud Computing
In a law firm context, the use of cloud computing raises
ethics issues around storing confidential client data on a
system the attorney may not own or otherwise control.
While Formal Ethics Opinions (FEO) ultimately endorse the
use of cloud computing technology in a law firm provided
that “reasonable care is taken effectively to minimize the
risks to the confidentiality and to the security of client
information and client files,” the onus of evaluating a cloud
provider’s security infrastructure is placed on the law firm.
2/18/2015 39
Date Security Covers Four Primary Areas:
1. Encryption
• Secure Sockets Layer (SSL):
• Secures communications between your computer/device and the cloud
• Industry standard technology that enables secure banking and e-
commerce
• Allows for completely secure communications even over public Wi-Fi
connections.
• Look for “lock” icon to indicate a website is using SSL.
2. Server security
• Cloud based provider’s server security
• Ask for evidence of a third-party security audit
2/18/2015 40
Date Security Covers Four Primary Areas:
3. Client Security
• Security of the mobile/laptop/desktop devices from which you are
accessing the SaaS applications
• Password protect devices
• Internet Firewalls
• Antivirus protection
• Operating system security updates
• TureCrypt: Protects data even if device is stolen
4. Password Security
• Use a password generator and manager application:
PasswordSafe or LastPass
2/18/2015 41
Date Privacy Considerations
1. What is the privacy policy?
• Carefully read through the provider’s Service Level Agreement
(SLA)
• How information supplied to the service is housed, protected,
shared or disposed of.
2. Who owns the data and server locations?
• Find out where servers are located, and if there is geo-redundancy
• Realize that servers located outside of the United States may be
subject to international laws.
2/18/2015 42
Date Privacy Considerations
3. Can you get your data?
• Return of law office data should be in a readable format, preferably
encrypted; and, data should be returned within a reasonable
amount of time after request is made by the attorney.
• What is the policy on making a request for data return?
• Find out what happens to data after the relationship between
service provider and attorney is terminated.
4. Data Backups
• How often is your data backed up? To multiple locations (it better