Supreme court schedules hearing on proposed changes to Trust Account
Rule
On May 22, 2006, the State Bar and the Office of
Lawyer Regulation (OLR) filed a joint petition asking the supreme court
to modify portions of the trust account rule, SCR 20:1.15, and several
related rules. The court has scheduled a public hearing for Jan. 17, at
9:30 a.m. in the supreme court hearing room.
“We believe the proposed changes will protect
clients, be more workable for lawyers and firms for day-to-day business,
and help the OLR in its enforcement as cases arise,” says Trust
Account Rule Working Group Chair Mike Olds.
“The main areas of concern identified by the
committee and member feedback were the use of debit cards and electronic
transfers,” says Olds. “Other areas include defining the
differences among flat fees, retainers, and advance fees; withdrawal of
noncontingent fees; and the requirement to hold advance fees for five
business days before distribution, which can be a burden for small
firms.”
The group was appointed in October 2004 to propose
revisions to the Supreme Court Rules, effective July 1, 2004, affecting
trust accounts.
Public comments on the proposed changes are
invited.
Read the
petition
.
