Most of us have a process for closing out the old year and starting the new one. It’s natural to turn the page when starting a new year because it matches our biorhythms. If this is you, and you’d like to apply it to your practice, the new year surely presents some good opportunities.
A great place to start is the firm’s IOLTA. Governed by Md. Rules 19-400 et seq., a firm’s IOLTA is often an integral part of firm operations. The rules require lawyers to keep specific records and reconcile the account. Reconciliation requires matching the bank statements, the general ledger and each individual client ledger. While firms should reconcile the IOLTA monthly, Md. Rule 19-407, the new year represents an excellent time to ensure that all fees owed to the firm have been transferred from IOLTA to operating. The new year also presents the chance to return any small client balances, to determine if any client funds have been abandoned, to work towards paying off any liens that could not be paid when initially disbursing settlement funds, or to ensure that reconciliation happens monthly over the coming year. IOLTA rule violations carry significant discipline, so keeping your IOLTA up to date is a great start.
Another repeatable process ripe for a new year’s review is the firm’s engagement letters. Most of us already know that Md. Rule 19-301.5 requires most engagement letters to be in writing, the only exception being for those matters when the attorney will charge a regularly represented client on the same basis or rate.
Some variables in fee agreements are worth reviewing. One is whether the firm wishes to include an arbitration clause in the event of a fee dispute. Another potential area relates to the timing of when fees are earned in a flat fee matter, a matter of particular significance for the criminal defense bar. To this end, Rule 19-301.15 was amended as of July 1, 2025. Rule 1.15(c) requires attorneys to “deposit into a client trust account legal fees and expenses that have been paid in advance, to be withdrawn by the attorney only as fees are earned or expenses incurred.”
This raises the question of when a flat fee is earned, a topic discussed at length by Justice Biran in Attorney Grievance Comm’n v. Jones 484 Md. 155 (2023). Reading Jones and Rule 1.15 together, lawyers who charge flat fees should consider putting markers in the retainer agreement or allocate the fee to various parts of the matter such as preliminary hearings, motions hearings, discovery and pretrial motions so fees can be earned during the case, not just at the end of a long process.
Next, your malpractice insurance will need to be renewed. Start early. Talk with your agent and determine if coverage for cyber-attacks, obtaining a rider or endorsement for disciplinary matters, or employment liability.
Other ideas are more basic. Updating the firm’s calendaring or case administration process is another terrific step. Consider whether Clio, FileVine, My Case or something similar would help your practice. Likewise, most lawyers now use artificial intelligence for something. Consider whether the firm needs an AI policy or how you can use AI to your clients’ advantage in 2026.
A final idea is termination of representation. Md. Rule 19-301.16 (Declining or Terminating Representation) governs when lawyers may end the attorney-client relationship. If a client relationship has deteriorated, consider whether you should continue representing that client. Only in rare cases can a lawyer be forced to continue to represent a client after the attorney-client relationship breaks down. Do the profession and do yourself a favor, close those matters before you get too far into 2026, and let’s make 2026 the best year yet for Maryland’s lawyers.
This article originally appeared in The Daily Record on January 8, 2026.