ISBA Ethics Opinions on Law Firms

An employing lawyer or law firm may allow a law school graduate awaiting the bar exam or admission to the bar to perform many of the services normally performed by licensed first year associates, other than appearing in a legal proceeding, provided that the graduate’s work is reviewed by a supervising lawyer who takes responsibility for the work product and that the graduate and employing lawyer or law firm do not make false or misleading statements to clients or others regarding the graduate’s status at the firm.

A lawyer must maintain records that identify each client and reflect whether the client’s representation is active for an indefinite period of time. A lawyer must maintain all financial records related to the lawyer’s practice as well as complete records of trust account funds and other property of clients or third parties held by the lawyer for at least seven years. For other records and materials, if appropriate steps are taken to return or preserve actual client property or items with intrinsic value, it is generally permissible for a lawyer to dispose of closed file materials within a “reasonable” time after conclusion of a matter; and seven years should generally be considered a reasonable time. Sending former clients notice of the proposed disposal of a closed file generally should not be required. Any method of disposal must protect the confidentiality of client information.

A law firm organized as a professional corporation in a state other than Illinois, and registered as a law firm in its state of incorporation, is required to register as a law firm with the Illinois Supreme Court if one of its shareholders, admitted to the Illinois bar, practices law in Illinois in the name of the professional corporation.

A lawyer must maintain records that identify the name and last known address of each client, and reflect whether the client’s representation is active or concluded, for an indefinite period of time. A lawyer must keep complete records of trust account funds and other property of clients or third parties held by the lawyer and must preserve such records for at least seven years after termination of the representation. A lawyer must also maintain all financial records related to the lawyer’s practice for not less than seven years. For other materials, if appropriate steps are taken to return or preserve actual client property or items with intrinsic value, then it is generally permissible for a legal services program to dispose of routine case file materials five years after case closing. Other considerations, such as administrative expense and the six-year Illinois statute of repose, suggest a general retention period for most lawyers of at least seven years. Any method of disposal must protect the confidentiality of client information.

It is not professionally improper for a law firm and a financial planning business to share certain space and facilities, so long as client confidences are preserved and there is no improper solicitation or division of fees.