Advisory Opinion: 1610

Year Issued: 1995

RPC(s):

Subject: Duty to disburse client funds to creditors after client withdraws authorization

The Committee reviewed your inquiry regarding your duty to disburse client funds to client creditors. Your clients previously authorized you to pay their creditors out of settlement proceeds, but later withdrew that authorization because of subsequent fee disputes with those creditors. It was the Committee's opinion that absent a valid lien on the funds, it would be a violation for you to distribute the trust funds to the creditors over the objection of your clients. Because the question of a venue for resolving a dispute is a question of law, the Committee cannot address that issue. However, you do have an affirmative duty to resolve the dispute.

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.