Good Discussion Of Professional Responsibility Rule Requirements For Flat Fee Agreement Arrangements.
In Dickson v. Mann, Case No. D081851 (4th Dist., Div. 1 July 16, 2024) (published), an appellate court has a discussion on who owns and how to handle client funds under a flat fee agreement. There, it agreed with a lower court’s assessment that a judgment debtor client’s deposit of fees with a law firm were not immune from third-party levy because law firm had yet to earn any compensations for services under the flat fee agreement. The opinion has a good discussion on using law firm operating accounts versus trust account with respect to a deposit of client funds under a flat fee agreement.