Rescheduled event & funds request

Trial / Mediation Funds Request after Continuance (copy of word doc linked at bottom)

Brief Summary of Issue: When a client pays a funds request for a specific event (such as a trial, motion, or mediation) and that event is later rescheduled, the client may assume those funds will remain untouched and applied to the new date. In reality, those funds are placed in trust and applied to work performed and billed as it occurs. Proactively clarifying this helps avoid confusion or conflict when additional funds are later required.

• Step 1: Approximately 7 days after it is determined the event is rescheduled, send the following message:

Initial message upon event being rescheduled

As you know, [[[[SELECT AN ITEM]]] has been rescheduled. The funds you previously deposited in anticipation of [[[[SELECT AN ITEM]]] will remain in your trust account with our firm.

As we continue to complete regular, ongoing work on your matter, that work results in new invoices, and those trust funds will be used to pay those invoices as they are issued. Depending on the remaining balance in your trust account, we may ask that you deposit additional funds as the new date for [[[[SELECT AN ITEM]]] approaches.

If additional funds are needed due to a low trust balance, we will let you know and will send a specific funds request outlining the amount requested and the date it is due. As always, we will do our best to provide as much advance notice as possible, so you have time to plan.

• Step 2: Once it is determined that additional funds will be needed*, send the following message AND notify finance of the funds requests specifics:

Follow up message asking to deposit more funds

As [[[[SELECT AN ITEM]]] approaches, we wanted to let you know that the funds currently in your trust account are lower than what is needed to cover the remaining preparation and work. At this time, we are requesting that you deposit additional funds into your trust account. You will receive a separate funds request from our finance department that specifies the amount requested and when it’s due. Please let us know if you have any questions about this request.

* It is the responsibility of the assigned paralegal (in consultation with the attorney) to determine whether and how much additional funds are needed and send the funds request to finance. The trust balance should be reviewed approximately six (6) weeks prior to mediations and motion hearings, and approximately ten (10) weeks prior to trial. In making this determination, the paralegal should consider the anticipated work to be completed during that timeframe, as well as the amount of work already completed for the upcoming event (as applicable).

• Step 3 (Optional): If a client pushes back on the additional funds request, send the following message:

Response message to client saying they already paid once / what happened to those funds

As we previously explained in the message sent to you after [[[[SELECT AN ITEM]]] was rescheduled, the funds you deposited were placed into your trust account and applied to legal work on your case as it was completed and billed. Because [[[[SELECT AN ITEM]]] was moved and work on your matter continued in the meantime, those trust funds have been used to cover earlier invoices. As a result, the remaining balance in your trust account is not sufficient to cover the upcoming mediation and the preparation required for it, which is why we sent the additional funds request. If it is helpful, our finance manager, Amber, would be happy to review your current trust balance or walk through recent invoices with you.