McGraw-Hill's Law Office Management for Paralegals 1st Edition by Lisa Schaffer, Mcgraw Hill Higher Education Staff, Curriculum Technology Staff, Andrew Wietecki

Exercise 5

Lois is a sole practitioner working in the area of employment law. Lois has been hired by a client to handle his wrongful termination case. Lois has asked for, and received, a $4,000 retainer, as is her customary policy. Lois's total billing for the first month is $500. Lois is aware that in wrongful termination suits, the amount of work usually increases as the first month ends. She is confident that in the next month she will bill well over $2,000 to the client. Therefore, Lois uses $2,000 from the client's retainer agreement to pay the rent on her office. Are Lois's actions proper ? Why or why not?