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Client trust funds and the firm's operating funds must never commingle, even temporarily, even with the intent to "fix it later." Bar audits look for two things first: (1) any check or transfer that touches both accounts, (2) negative balances on any specific client's ledger. Both are presumptive misappropriation regardless of intent.
Trust-account violations produce some of the harshest discipline in professional regulation, including suspension and disbarment. The technicality has no defense based on good intentions.
A preservation (litigation hold) letter is appropriate as soon as litigation is reasonably anticipated, not just after a complaint is filed. The letter should identify the matter, the document categories at issue, and the recipient's preservation duty. Failure to send one is the leading evidence of spoliation in subsequent motion practice.
Sanctions for spoliation can include adverse-inference instructions, monetary fines, and in severe cases default judgment. The cost of issuing a hold letter is one paralegal hour.
Arbitration clauses are most often struck down for procedural unconscionability — surprise placement, font that hides them, or no opportunity to negotiate — rather than substantive issues. A clause that is conspicuous, separately initialed, and accompanies a clear written notice of waiver of jury trial survives review in most jurisdictions.
A void arbitration clause means the dispute lands in court, often with discovery and jury exposure that the clause was meant to prevent. Drafting discipline at contract formation is cheap; defending the clause years later is not.
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