Does the six-year clock for keeping a client's financial records run from each matter ending or from the whole relationship ending?

Plain-English summary

An attorney represented a client on a variety of separate matters, with representation on some matters concluding while representation on others continued. The question was whether the period for which an attorney must retain financial records is calculated from the termination of each instance of representation or from the termination of the entire attorney-client relationship.

The committee quoted Rule 1.15(a), which requires complete records of account funds and other client property to be kept and preserved for six years "after termination of the representation." It observed that a client may retain an attorney or firm for a single matter, or indefinitely, sometimes maintaining relationships that began with founding members of a firm now long deceased. Against that backdrop, the committee concluded that the only reasonable interpretation of Rule 1.15(a) is that an attorney must keep financial records relating to a particular matter for six years following the conclusion of that matter. Tying the clock to the end of the entire relationship could burden attorneys with keeping records indefinitely, which the committee said is clearly not the intent of the rule. The committee also cross-referenced Rule 417 of the South Carolina Appellate Court Rules.

Currency note

This opinion was issued in 2000, before the South Carolina Bar's adoption of the 2005 revisions to the Rules of Professional Conduct. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule, deadline, or requirement mentioned here.

Common questions

Q: Does the six-year retention clock start when each matter ends or when the client relationship ends?

A: The committee concluded the six-year period under Rule 1.15(a) runs from the conclusion of each particular matter, not from the termination of the entire attorney-client relationship.

Q: Why did the committee read the rule that way?

A: Because a client may use an attorney or firm indefinitely, tying retention to the end of the whole relationship could require keeping records indefinitely, which the committee said is clearly not the rule's intent.

Background and rules framework

The opinion interpreted South Carolina RPC 1.15(a) (safekeeping of client property; preservation of complete records of account funds and other property for six years after termination of the representation), corresponding to Model Rule 1.15, and cross-referenced Rule 417 of the South Carolina Appellate Court Rules.

Citations and references

Rules of Professional Conduct:

• South Carolina RPC 1.15(a) / Model Rule 1.15: safekeeping property; six-year preservation of account records.

Other authority:

• Rule 417, South Carolina Appellate Court Rules (financial recordkeeping).

See also

• No sibling opinions yet indexed.

Source

• Landing page: https://www.scbar.org/for-lawyers/quicklinks/legal-resources/ethics-advisory-opinions/ethics-advisory-opinion-00-02/

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

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.