Advisory Opinion: 1674

Year Issued: 1996

RPC(s): RPC 1.1; 1.2; 1.3; 1.4; 1.14

Subject: Lawyer accepting payments from judgment debtor and cannot identify client on whose behalf payments are received

The Committee reviewed your inquiry regarding your ethical obligations when you are receiving monthly payments from a judgment debtor but you do not know the name of the insurance company for whom the subrogation claim is being collected. The Committee decided that you have an obligation under RPC 1.1, 1.3, and 1.4 to make a thorough effort to identify and contact your insurance company client. This includes contacting your former associate or taking other steps necessary to learn the identity of this client. With respect to the funds obtained from the judgment debtor, the money should be placed in a separate interest-bearing trust account pursuant to RPC 1.14. Without a fee agreement with your client, you should take no fees out of the money paid by the judgment debtor. Finally, on the facts presented, it appears that you probably did not have authority to accept a payment plan without your client's approval and may be in violation of RPC 1.2 and RPC 1.4.

Advisory Opinions are provided for the education of the Bar and reflect the opinion of the Committee on Professional Ethics (CPE) or its predecessors. Advisory Opinions are provided pursuant to the authorization granted by the Board of Governors, but are not individually approved by the Board and do not reflect the official position of the Bar association. Laws other than the Washington State Rules of Professional Conduct may apply to the inquiry. The Committee's answer does not include or opine about any other applicable law other than the meaning of the Rules of Professional Conduct.