Advisory Opinion:
2156
Year Issued:
2007
RPC(s):
RPC 1.15A(h)(9), APR 12(h) & 12.1
Subject:
whether a Licensed Practice Officer (LPO) may be an authorized signatory on trust accounts under RPC 1.15A(h)(9)
1. Question: May a Limited Practice Officer (“LPO”) sign a check drawn on a trust account given the language of RPC 1.15A(h)(9)?
Answer: Yes. Under limited circumstances, an LPO may sign trust account checks.
2. Question: How does the answer to the question in 1.1 relate to the rule’s statement that “only a lawyer admitted to practice law may be an authorized signatory on the account?”
Answer: When the state Supreme Court considered the adoption in 1995 of Admission to Practice Rule (APR) 12(h) and APR 12.1 stating how LPOs are to treat funds received related to closing real property transactions and preserving the identity of funds in transactions by LPOs, they considered putting the IOLTA requirement on LPOs. They explicitly considered that escrow officers are licensed by the Department of Financial Institutions and title officers are licensed by the Insurance Commissioners and both officers are authorized to handle funds. The statement of purpose set forth in advance sheet 7 of 125 Washington 2d, Proposed 69-75, quotes a November 8, 1994 letter from the Chief Justice asking the Bar Association to modify the proposed rule “to clarify that it is applied only to those funds held in escrow that are related to transactions in which the certified closing officer engaged in the practice of law.”
Given this history, it is reasonable for RPC 1.15A(h)(9) to be interpreted as including LPOs, as they have a limited authorization to practice law. However, while an LPO may be a signatory on checks drawn on a lawyer’s trust account, the LPO may only sign checks related to a transaction for which they are licensed. Their authority does not go beyond that. Because the inquirer does run a risk if an LPO signs checks on the trust account, it may be prudent to establish two different trust accounts, with one specific to transactions in which the LPO is involved.
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