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violation of Oregon RPC 1.15-1 to deposit all credit card transactions into a
trust account, if the portion representing earned fees is promptly
transferred to the lawyers business account. OSB Formal Opinion No.
2005-172. In other words, if a lawyer is using a single merchant account,
which must be a trust account under OSB Formal Opinion No. 2005-172,
that merchant account will receive some deposits which are retainers or
unearned fees and costs and some deposits that are earned fees (the
lawyers own funds). The latter is not considered commingling provided
the lawyer promptly transfers the earned fees from trust.
6. To return disputed fees. If a lawyer bills a client, takes the fees, and the
client later disputes the lawyers bill, the lawyer is no longer required to
replenish the trust account but the lawyer may if he/she wishes. OSB
Formal Opinion 2005-149. (Replacing the funds will necessarily come from
the lawyers own pocket since the lawyer previously removed the earned
fees from the trust account.)
7. To rectify an error when the lawyer removed funds from the IOLTA account
by mistake. For example, lawyer writes a check on the IOLTA account
when the check should have been written on the business account. The
lawyer is obliged to correct the error and replace the funds. [More on this
below.]
8. To correct mathematical errors involving the IOLTA account. For example,
lawyer discovers that deposits and disbursements were wrongly entered in
the columns of a spreadsheet or accounting program. The lawyer is
obligated to correct the errors, and if needed, replace any missing client
funds. [More on this below.]
9. To make a client whole if client funds are removed as the result of cyber
breach, scam, fraud, or embezzlement. The lawyer is obligated to make
her clients whole. By necessity, the lawyer will be replacing client funds
with funds that belong to the lawyer. [More on this below.]
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This entry was posted in Ethics, Fees, Financial Management, IOLTA and
tagged Beverly Michaelis, client trust account, lawyer trust account,
mathematical errors, Oregon law practice management, Reconciliation,
Recordkeeping, trust funds by beverlym. Bookmark the permalink
[http://oregonlawpracticemanagement.com/2015/03/30/commingling-andlawyer-trust-accounts/] .
http://oregonlawpracticemanagement.com/2015/03/30/commingling-and-lawyer-trust-accou... 6/5/2015