CLE
Tracy L. Kepler
Tracy L. Kepler CNA's Lawyers Insurance Program
Fiduciary Fundamentals Managing Client Funds & Avoiding Common Missteps
Overview AI Webinar Summary
Fiduciary Fundamentals: Managing Client Funds & Avoiding Common Missteps

This program will explore the financial responsibilities of lawyers under the ABA Model Rules of Professional Conduct, with a focus on Rules 1.5 (Fees), 1.15 (Safekeeping Property), and 1.16 (Declining or Terminating Representation). Attendees will gain a deeper understanding of the ethical considerations surrounding fee arrangements and responsible billing, what is a reasonable fee, handling client funds, and the proper procedures for managing and returning client property upon withdrawal or termination of representation. The session will provide practical insights and compliance tips to help lawyers meet their fiduciary duties and avoid common financial pitfalls.

Learning Objectives:

  • Understand Fee Agreements & Responsible Billing Practices: Learn the ethical requirements surrounding client fee agreements under Rule 1.5, including what constitutes reasonable fees and best practices for transparency in billing

  • Master Client Fund Management: Gain a comprehensive understanding of Rule 1.15, covering the proper handling, safeguarding, and accounting of client funds in trust accounts

  • Navigate Termination Procedures: Explore the financial obligations when ending client representation under Rule 1.16, including the return of unearned fees and client property

  • Avoid Common Financial Pitfalls: Identify common mistakes and ethical violations in handling legal fees and client property and learn practical strategies for compliance with financial responsibilities

Topics covered include:
Legal Ethics Law Practice
Agenda:
  • Why? I’m Never Going to Touch the Money

  • MRPC 1.5
    • What is a reasonable fee under 1.5(a)
    • Success fees
    • Fee in something other than money
    • Fee agreements & MRPC 1.5(b)
    • Contingency fees & MRPC 1.5(c)
    • MRPC 1.5(d) prohibitions
    • MRPC 1.5(e) & division of fees

  • Risk Control Measures To Avoid Fee Disputes
    • Billing best practices
    • Efficiency through technology
    • Good billing etiquette
    • Steps to resolve a dispute

  • Risks of a Collection Action
    • Adverse consequences
    • Fee suit decision tree

  • Safekeeping of Property
    • MRPC 1.15(a) & three trust fund characteristics
    • General duties under MRPC 1.15
    • Differing fee agreements
    • Choice of retainers
    • What must and must not be deposited in a client trust account
    • Pooled v. individual accounts
    • Good practice tips
    • How to handle disputed funds
    • Other tenders & unclaimed funds
    • Refunds

  • Questions & Answers (as time permits)
Duration of this webinar: 60 minutes
Originally broadcast: April 15, 2025 10:00 AM PT
Webinar Highlights

This webinar is divided into section summaries, which you can scan for key points and then dive into the sections that interest you the most.

Introduction
Tracy Kepler is a Risk Control Consulting Director for CNA's Lawyers Insurance Program, focusing on risk control initiatives. Tracy will discuss fiduciary fundamentals, managing client funds, and avoiding common missteps. The presentation will cover legal ethics, fee agreements, and responsible billing practices, referencing the Model Rules of Professional Conduct. Tracy aims to provide practical takeaways for various practice settings to help avoid common mistakes and violations.
Legal Ethics and Fee Agreements
Tracy discusses the importance of understanding fee agreements and financial issues across different practice settings. She highlights that fee-related problems are not limited to solo practitioners but occur in large firms as well. Tracy provides examples of attorneys facing criminal charges for misappropriating client funds. She stresses the importance of supervising non-lawyer assistants to prevent violations of professional conduct rules. Tracy explains the significance of Rule 1.5 regarding the reasonableness of fees and the factors courts consider. She emphasizes the need for attorneys to be aware of professional misconduct related to fraud and misrepresentation.
Reasonableness of Fees
Tracy outlines the eight factors to consider when determining the reasonableness of fees. She explains that these factors include time and complexity, opportunity cost, customary fees, and client relationship. Tracy discusses examples of unreasonable fees, such as bill padding, excessive lawyering, and charging for non-lawyer work. She highlights the importance of aligning the value of services with the fees charged to avoid disputes.
Success Fees and Cryptocurrency
Tracy discusses the ethical considerations and potential pitfalls of implementing success fees. She explains the importance of informed consent and addressing conflicts of interest with clients. Tracy highlights the need for attorneys to be competent and diligent when using success fees. She provides best practices for implementing success fees, including assessing billing practices and client suitability. Tracy discusses the acceptance of cryptocurrency as payment and the associated ethical and practical challenges. She emphasizes the importance of understanding cryptocurrency regulations and maintaining accurate records.
Fee Disputes and Collection Actions
Tracy discusses the importance of fee agreements in setting expectations and boundaries with clients. She emphasizes the need for ongoing discussions about fees throughout the representation. Tracy highlights the risks of fee disputes and the importance of clear communication and accurate billing. She provides strategies for addressing overdue bills and avoiding collection actions. Tracy discusses the potential consequences of filing a collection suit, including malpractice claims. She emphasizes the importance of reviewing billing strategies and collection procedures to avoid disputes.
Safekeeping of Client Funds
Tracy discusses the safekeeping of client funds and the importance of separating them from personal funds. She explains the concepts of conversion, misappropriation, and commingling under Rule 1.15 A. Tracy emphasizes the need for accurate record-keeping and maintaining the integrity of trust accounts. She discusses the types of funds that should be held in client trust accounts and the conditions for interest-bearing accounts. Tracy provides practice tips for managing client trust accounts and handling disputed funds. She highlights the importance of returning unearned fees upon termination of representation.
Ethical and Enforceable Fee Agreements
Tracy answers questions about ensuring fee agreements are ethical and enforceable. She emphasizes the importance of considering the reasonableness standards under Rule 1.5 A. Tracy discusses the challenges of multi-jurisdictional practices and the importance of understanding state-specific rules. She provides advice on handling client disputes over invoices and the importance of communication. Tracy discusses the steps for returning client funds upon termination of representation. She emphasizes the importance of maintaining accurate records.

Please note this AI-generated summary provides a general overview of the webinar but may not capture all details, nuances, or the exact words of the speaker. For complete accuracy, please refer to the original webinar recording.

Continuing Legal Education (CLE) Credits

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California CLE

Status: Approved

Credits: 1.00 Legal Ethics

Earn Credit Until: June 30, 2026

South Carolina CLE

Status: Approved

Credits: 1.00 Legal Ethics/Professional Responsibility

Difficulty: All Levels

Earn Credit Until: December 31, 2025

North Carolina CLE

Status: Approved

Credits: 1.00 Ethics

Earn Credit Until: February 28, 2026

Texas CLE

Status: Approved

Credits: 1.00 Legal Ethics/Professional Responsibility

Earn Credit Until: March 31, 2026


This presentation is approved for one hour of Legal Ethics CLE credit in California, one hour of Legal Ethics/Professional Responsibility CLE credit in South Carolina (all levels), and one hour of Ethics CLE credit in North Carolina. This course has been approved for Minimum Continuing Legal Education credit by the State Bar of Texas Committee on MCLE in the amount of 1.00 credit hours, of which 1.00 credit hours will apply to Legal Ethics/Professional Responsibility credit.

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Speaker
Tracy L. Kepler
Tracy L. Kepler Director of Risk Control Consulting
CNA's Lawyers Insurance Program

Tracy L. Kepler is the Risk Control Consulting Director for CNA’s Lawyers Insurance Program. In this role, she designs and develops content and distribution of risk control initiatives relevant to the practice of law. She collaborates with the underwriting and claims teams to develop and execute strategies for the profitable growth of the program. Tracy lectures frequently at CNA-sponsored events and at state and local bar associations and national seminars hosted by industry-leading organizations. She also writes articles focusing on law firm risk control and professional responsibility issues. Read More ›

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