Legal Practice Glossary
Accounts Payable
Money owed to vendors for services or supplies purchased on credit for the law practice.
Example: Outstanding invoices from legal research services or office supply vendors
Accounts Receivable
Money owed to the law firm by clients for legal services rendered.
Example: Outstanding client invoices for completed legal work
Admission
The process by which attorneys become licensed to practice law in a jurisdiction.
Example: Bar admission requires passing the bar exam and meeting character requirements
Attorney-Client Privilege
Legal protection that prevents disclosure of confidential communications between attorney and client.
Example: Client confessions to attorney are protected by attorney-client privilege
Billable Hours
Time spent on client matters that can be charged to the client at the attorney's hourly rate.
Example: Researching case law for a client's matter generates billable hours
Case Management System
Software platform used to organize and track client matters, deadlines, and case information.
Example: Using case management software to track all active litigation matters
Character and Fitness
Background investigation process for bar admission focusing on moral character and professional conduct.
Example: Character and fitness review examines criminal history and financial responsibility
Client Intake
Process of collecting information from prospective clients and determining representation.
Example: Client intake includes conflict checking and collecting contact information
Client Portal
Secure online platform where clients can access case documents and communicate with their attorney.
Example: Clients log into the portal to view case updates and upload documents
Client Trust Account (IOLTA)
Separate bank account where attorneys hold client funds, generating interest for legal aid programs.
Example: Retainer payments are deposited into the client trust account
Conflict of Interest
Situation where attorney's duty to one client conflicts with duty to another client or personal interests.
Example: Representing both parties in a divorce creates a conflict of interest
Continuing Legal Education (CLE)
Required ongoing education to maintain active bar membership and legal competency.
Example: Most states require 12-15 CLE hours annually to maintain bar membership
Contingency Fee
Fee arrangement where attorney payment is contingent on successful case outcome, typically a percentage.
Example: Personal injury attorney takes 33% contingency fee on settlement recovery
Court Rules
Procedural rules governing how cases are conducted in specific courts or jurisdictions.
Example: Federal Rules of Civil Procedure govern federal court litigation
Docket
Court's calendar of cases or a case management system showing deadlines and court dates.
Example: Attorney checks the docket to see when the motion hearing is scheduled
Document Management
System for organizing, storing, and retrieving legal documents and case files.
Example: Document management system allows quick search of all case pleadings
Engagement Letter
Written agreement between attorney and client defining scope of representation and terms.
Example: Engagement letter specifies hourly rate and estimated total fees
Ethics Rules
Professional conduct rules governing attorney behavior and client relationships.
Example: Ethics rules require confidentiality of client communications
Fee Agreement
Written contract specifying how attorney fees will be calculated and paid.
Example: Hourly fee agreement specifies $350/hour rate with monthly billing
Flat Fee
Fixed fee arrangement for specific legal services regardless of time spent.
Example: Attorney charges flat fee of $2,500 for simple will preparation
Guardian ad Litem
Attorney appointed by court to represent interests of minor children or incapacitated adults.
Example: Guardian ad litem represents children's interests in custody disputes
Hourly Billing
Fee structure where clients pay for attorney time spent on their matters.
Example: Attorney bills client $400/hour for research and writing time
Intake Process
Systematic procedure for collecting client information and determining representation.
Example: Intake process includes conflict check, fee discussion, and engagement letter
IOLTA (Interest on Lawyer Trust Accounts)
Program where interest earned on client trust accounts funds legal aid organizations.
Example: IOLTA funds provide legal services to low-income individuals
Legal Malpractice
Professional negligence by attorney resulting in damage to client's legal position.
Example: Missing statute of limitations deadline may constitute legal malpractice
Matter Management
System for organizing and tracking individual client cases or legal matters.
Example: Matter management system tracks deadlines and tasks for each case
Motion Practice
Process of making formal written requests to the court for specific rulings or orders.
Example: Motion for summary judgment asks court to decide case without trial
Non-Billable Time
Time spent on administrative tasks, marketing, or practice management that cannot be charged to clients.
Example: Time spent on billing, marketing, and CLE courses is non-billable
Practice Management Software
Integrated software platform for managing law firm operations, clients, and cases.
Example: Practice management software handles billing, calendaring, and document storage
Professional Liability Insurance
Malpractice insurance protecting attorneys against claims of professional negligence.
Example: Professional liability insurance covers defense costs and damages from malpractice claims
Retainer
Advance payment by client to secure attorney services, typically held in trust account.
Example: Client pays $5,000 retainer before attorney begins work on the case
Scope of Representation
Specific legal services and matters covered under attorney-client engagement.
Example: Scope limited to contract review, excluding litigation representation
Statute of Limitations
Time limit for filing legal claims or lawsuits after events giving rise to the claim.
Example: Personal injury claims typically have 2-3 year statute of limitations
Time and Billing Software
Software for tracking billable hours and generating client invoices.
Example: Time and billing software automatically calculates fees based on recorded hours
Trust Account
Separate bank account for holding client funds, kept separate from attorney operating funds.
Example: Client retainers and settlement funds are deposited in trust account
Unauthorized Practice of Law
Providing legal services without proper licensing, which is illegal in all jurisdictions.
Example: Non-attorneys cannot represent clients in court or give legal advice
Work Product
Attorney's mental impressions, legal theories, and case strategy, protected from disclosure.
Example: Attorney's case analysis and strategy notes are protected work product
Written Fee Agreement
Required written contract in many states specifying fee arrangements between attorney and client.
Example: State law requires written fee agreements for representations exceeding $1,000