LEGAL, ETHICAL & PRACTICAL ISSUES OF LAWYERING

UNIVERSITY OF HOUSTON LAW CENTER

SPRING, 2007

TEXT: STEELE, T. M., MATERIALS AND CASES ON LAW PRACTICE MGMT.

Professor Tim Riley

Riley Law Firm

The Civil Justice Center

112 E. 4^th St.

Houston, TX 77007-2502

(713) 646-1000, E-Mail TDR@TxTrial.com

             There will be no examination for this course. Grading will be as follows:

Class preparation and participation                                                                                                           20%

Assignment 1 (Time and Billing)                                                                                                             10%

Assignment 2 (Partnership Agreement)                                                                                                    25%

Assignment 3 (Client Retention Agreement)                                                                                            15%

Assignment 4 (Comprehensive Business Plan)                                                                                        30%

Assignment 1

             From the first day you start preparing for this class, begin keeping your time and expenses. You may use any manner you choose, i.e., a commercial timekeeping program like TimeSlips, a word processing program, a journal, notes, etc. Time must be kept in 1/10 hour increments, and must contain a description sufficient to satisfy the requirements of a client audit. Any expenses incurred in connection with the course, such as transportation costs to and from school, must be kept and should be charged at the rate currently allowed by the IRS for business travel. Ordinary overhead, such as software cost, paper, printing, and the like, cannot be included as expenses.

             On the final day of class, 4-24-07, you must turn in the time and expenses in the form of an invoice to me as the client. Your grade will be determined by the professionalism of the bill and how much of the bill a reasonably prudent client would pay or question.

Assignment 2

             You are to prepare a law firm partnership agreement. This is to be a simple two-member general partnership under Texas law. The areas to be covered should include:

•           Firm Organization and Structure

•           Initial and Future Capital Contributions

•           Partnership Property and Ownership

•           Management

•           Finance and Accounting

•           Hiring

•           Partner Draws and Compensation

•           Involuntary Removal of Partner

•           Voluntary Dissolution

•           Enforcement

•           Any other areas you believe should be covered

             This assignment must be printed on double-spaced paper, no more than 10 pages. The due date is February 6, 2007. Your grade will be determined by the professionalism of the agreement, and how well you anticipate contingencies so as to avoid future disagreements during the existence of the firm and at its dissolution.

Assignment 3

             You are to prepare a client retention agreement. Your firm is being retained by Acme Building Supply Co. to pursue monetary recovery against Roberto X. O’Perry Homes for non-payment of a bill for supplies sent on February 22, 2005. Litigation is anticipated, but the contract contains an arbitration clause, which the defendant may invoke. There is also the strong possibility that you will have to defend an anticipated counter-claim for defective materials.

             Your fee will be $150 per hour plus 22.5% of any recovery on any recovery up to $250,000, and 30% of any recovery over $250,000. You will be advancing all of the expenses of the litigation. At the conclusion, your compensation will include your fee plus recovery of all expenses advanced.

             You have a referring lawyer on the case who will be getting 15% of all attorneys’ fees you receive on the first gross $250,000 in recovery, and 25% of the attorneys’ fees you receive on any gross recovery in excess of $250,000.

             The retention agreement should cover all the bases so as to avoid dispute if and when the matter should settle. This assignment must be turned in on March 27, 2007.

Assignment 4

             You are to prepare a comprehensive business plan to present to a bank for bank financing for the firm you formed in Assignment 2. The business plan should include all of the following:

•           Executive summary with firm description

•           Background summary (narrative c.v.), for the two partners

•           Firm objectives

•           Capital requirements

•           Firm production projections

•           Technology plan

•           Market analysis

•           Client profile and representative list (or target clients)

•           Marketing plan

•           Financial plan

•           Loan security

•           Exit/payback plan

•           Conclusion

•           Supporting schedules – balance sheet, income statement, cash flow statement, and exit/payback projection

             This assignment will be due on the last day of class, April 24, 2007. The plan must be typed, double spaced, and no more than 20 pages.

             Be extremely realistic with all projections. Do not use fantastic assumptions. Your grade will be determined by how professional the plan appears, how much additional detail would likely be requested, and how likely a bank would be to extend the credit requested on the basis of the merits, substance and form, of the plan.