UPON THE REQUEST OF A MEMBER OF THE SOUTH CAROLINA BAR, THE ETHICS ADVISORY COMMITTEE HAS RENDERED THIS OPINION ON THE ETHICAL PROPRIETY OF THE INQUIRER’S CONTEMPLATED CONDUCT. THIS COMMITTEE HAS NO DISCIPLINARY AUTHORITY. LAWYER DISCIPLINE IS ADMINISTERED SOLELY BY THE SOUTH CAROLINA SUPREME COURT THROUGH ITS COMMISSION ON LAWYER CONDUCT.
Ethics Advisory Opinion 00-02
Attorney represents client on a variety of separate matters. As representation of the client concludes on one matter, representation of the client may continue on other matters.
Question:
Is the period for which an attorney is required to retain financial records calculated from the termination of each instance of representation or from the termination of the entire attorney-client relationship?
Summary:
Rule 1.15(a) requires an attorney to maintain financial records relating to a particular matter for six years from the conclusion of that matter.
Opinion:
Rule 1.15(a) of the South Carolina Rules of Professional Conduct states:
A lawyer shall hold property of clients or third persons that is in a lawyer's possession in connection with a representation separate from the lawyer's own property. Funds shall be kept in a separate account maintained in the state where the lawyer's office is situated, or elsewhere with the consent of the client or third person. Other property shall be identified as such and appropriately safeguarded. Complete records of such account funds and other property shall be kept by the lawyer and shall be preserved for a period of six years after termination of the representation.
A client may retain an attorney or firm for a single matter. In some instances, it may be difficult to determine whether the client will utilize the attorney or firm in the future following the termination of that representation. A client may also retain an attorney or firm indefinitely. Some clients have maintained relationships with firms where those relationships began with founding members of the firm now long deceased.
Accordingly, the only reasonable interpretation of 1.15(a) is that an attorney must maintain financial records relating to a particular matter for six years following the conclusion of that matter. Otherwise, attorneys may be burdened by an obligation to maintain those records indefinitely, which is clearly not the intent of the rule. See also Rule 417, South Carolina Appellate Court Rules.