On April 14 I wrote Attorney Fees, a piece about the several types of fee arrangements between clients and their attorneys. I did not, however, discuss the trust account, an essential part of the fee relationship.

In many businesses service providers and sellers of goods receive deposits. Take, for example, a custom furniture manufacturer. You want a dining room table and chairs. You select the style, wood, and finish. You place your order. You’ll probably have to send a 50% deposit, with the balance due on delivery. What happens to your money? To the bank it goes, where it’s comingled with rest of the money the business takes in. Fire at the plant? No insurance? Pennies on the dollar