Answer Happy

SCENARIO:
Assume that you are the head litigation paralegal of the
large firm of Dewey, Cheatum & Howe, P.A., located in
Wilmington, Delaware. Your firm has just taken over the minuscule
law office of Boyiam, O'Verwhelmed & Reditodroppe, and your
boss (Ken Arewedoneyet, Esquire) is concerned as to the status of
the files that will now be the responsibility of your firm. Thus,
your project is to assess the situation with respect to the new
files that are coming into your firm, calendar the necessary
deadlines on each case, take care of immediate "fires" if
necessary, and - most importantly - keep track of your time (making
sure to differentiate between billable and non-billable time spent
in this matter.
Upon reaching the old office, you are presented with 2
Banker's Boxes of files:
Box One is comprised of two personal
injury files, neither of which has much done to it with respect to
working the case. One file appears to be in litigation and has a
Scheduling Order in it with a trial date, but little else. The
other case is fairly new, with an auto accident has occurred only
last month. The documentation associated with each case is
attached.
Box Two contains a big case that
appears to have settled, however, the old office was so overwhelmed
that they didn't prepare settlement paperwork! This is money just
waiting to come into the office, so a settlement sheet needs to be
prepared so that monies can be disbursed. Care should be taken to
document deadlines with regard to any monies that need to be left
in escrow if any, as well as to itemize all disbursements on
settlement sheets. Any fees to come into the firm will go directly
to the new firm. There is also what appears to be a ledger
documenting the work done/fee taken on another client's file. Thus,
the amount on retainer left in escrow needs to be determined, and a
letter sent to that client itemizing to him how much fee has been
earned, what is remaining in the escrow account, and any additional
fees that are owing to the new firm at this time. The documentation
associated with these cases is described below.
Two formal Memos to your boss (Mr.
Arewedoneyet), one on each of the files in Box One,
assessing for each file (1) the situation that
currently exists; (2) listing all deadlines that should be
calendared; and (3) any activity that you, as paralegals, identify
as needing to be done on the files in Box One as soon as possible
(i.e., discovery, interviewing witnesses, ordering records,
preparing for trial, etc.);
A settlement sheet for the first case in Box Two, itemizing
all disbursements, and noting any deadlines (if any) for disbursing
monies left in escrow;
A ledger sheet itemizing all fees earned on the other
client's file in Box Two, and then a letter drafted to the client
(for the attorney's signature), advising him as to where his escrow
monies went, what still remains of his escrow account, and what, if
any, monies are due from him at this time to ensure that the case
keeps progressing;
(Timesheets for all work involved for these files. Remember,
not everything that you do is billable, so take care to only list
things that can ultimately be charged to the client)
BOX ONE:
First Case:
-Summary of Case notes located in file;
-Copy of Complaint;
-Copy of Answer;
-Copy of Affidavit of Kelly Simon
-Copy of Scheduling Order, which was just e-filed by the Court
last week
-Copy of handwritten note, listing various persons who appear to
be involved in this matter
BOX TWO:
The case of Johnson v. Atlantic Records, et
al., has been settled on behalf of your client,
Jackie Johnson. You can assume that you have found the following
documents in the second Banker's Box:
Settlement draft in the amount of $300,000.00
Ledger sheets from the old firm indicated costs advanced of
$26,532.19
Contingency Fee Agreement signed by the client setting fee at
1/3 of the recovery
Notice from Medicare verifying they have paid $8,300 in medicals
on behalf of Ms. Johnson, and are asserting a lien for this
amount
Letter of agreement between the old firm and Dr. Rowe that the
client's unpaid balance with his office will be paid from
settlement proceeds - that amount is $17,320.45
Note from the old firm's bookkeeper that Ms. Johnson still owed
that office $4,000 in legal fees for representing her in a custody
matter and that this amount was to be taken from her recovery in
this case at the time of settlement
Adam Norris retained the old law firm for representation in a
custody battle in Family Court. At the time of retaining the firm,
Mr. Norris was advised that this matter would take $10,000 to start
and that the firm would let him know as the fee was earned/drawn
from that initial retainer payment. As far as you can tell,
however, the fee was continually taken from this account, but no
letters were ever sent to Mr. Norris as per the agreement. After a
lot of searching, you find the following items:
10/3/13: $10,000 deposited into an escrow account
10/14/13: $300 paid in court costs for filing paperwork
11/1/13: $1,500 in fee taken as earned
12/1/13: $1,500 additional fee taken as earned
12/15/13: $1,000 paid to expert witness for deposition
1/3/14: $1,500 additional fee taken
2/3/14: $1,500 additional fee taken
3/1/14: $1,500 additional fee taken
4/1/14: Note from the Court that additional filing fees of $500
are due from counsel at this time
You know that your firm typically requires a minimum of $1,000
to remain in escrow for active Family Court cases, and have been
advised that the rules of your firm will be applied to all new
cases that are coming in from this other office.