Practicing With Professionalism - South Carolina Bar Association
Practicing With Professionalism - South Carolina Bar Association
Practicing With Professionalism - South Carolina Bar Association
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accordance with generally accepted accounting principles, such as the accrual (<br />
method, the cash basis me~od and the incometax method. Bookkeeping records<br />
may be maintained by computer provided they otherwise comply with this Rule and<br />
provided further that printed copies can be made on demand in accordance with<br />
this subsection or subsection (g). They shaH be located at the principalColorado<br />
office of each attorney, partnership, professional corporation, or limited liability<br />
corporation. (i) Dissolutions. Upon the dissolution of any partnership of attorneys or<br />
ofany professional corporation or limited liability corporation, the former partners<br />
or sbareholdersshall make appropriate arrangements for the maintenance by one<br />
ofthem or by a successor form of the records specified in paragraph (g) ofthis Rule.<br />
(j) Availability ofRecords. Any ofthe records required to be kept by this Rule shall<br />
be produced in response to a subpoena duces tecum issued in connection with<br />
proceedings pursuant to C.R.C.P. 241. When so produced, all such records shall<br />
remain confidential except for the purposes ofthe particular proceeding and their<br />
contents shall not l.Je disclosed by anyone in such away as to violate the attorneydient.privilege.<br />
COMMENT<br />
A Jawyershould hold property ofothers with the care required ofa professional<br />
fiduciary. Securities should be kept in a safe deposit box except when some other form of<br />
safekeeping is warranted by special circumstances. All property which is the property of (~<br />
clients or third persons should be kept separate from the lawyer's business and personal<br />
property and, ifmonies, in one or~more trust accounts.<br />
Trust accounts offunds ofclients or third persons held in connection with a<br />
representation must be interest-bearing for the benefit ofthe client or third person or for<br />
the benefit ofthe Colorado Lawyer Trust Account Foundation where the funds are<br />
nominal in amount or expected to be held for a short period oftime. A lawyer should<br />
exercise good faith judgment in determining initially whether funds are ofsuch nominal<br />
amount or are expected to be held bythe lawyer for such a short period oftime that the<br />
funds should not be placed in an interest-bearing 'account for the benefitofthe client or<br />
third person. The lawyer should also consider such other factors as (i) the cost of<br />
establishing and maintaining the account, service charges, accounting fees, and tax report<br />
procedures; (ii) the nature ofthe transaction(s) involved; and (iii) the likelihood ofdelay<br />
in the relevant proceedings. A lawyer should review at reasonable intervals whether<br />
changed circumstances require further action respecting the deposit ofsuch funds.<br />
Separate trust accounts maybe warranted when administering estate monies or acting in<br />
similar fiduciary capacities.<br />
Lawyers often receive funds from third parties from which the lawyer's fee will be paid.<br />
Ifthere is risk that the client may divert funds without paying the fee, the lawyer is not<br />
required to remit the portion from which the fee is to be paid. However, a lawyer may not<br />
hold funds to coerce a client into accepting the lawyer's contention. The disputed portion (<br />
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