Opinion 1575

You ask whether a non-client who has paid a retainer to a lawyer for the benefit of a client, may obtain a refund of the unused portion of that retainer.

The Committee was of the opinion that the non-client, under the circumstances is entitled to a refund because the money belongs to the non-client. RPC 1.14 requires an attorney to promptly notify a client of the receipt of funds (RPC 1.14(b)(1)) and "promptly pay or deliver to the client as requested by a client the funds . . . In the possession of the lawyer, which the client is entitled to receive." There is nothing in the facts presented which indicates that the payor was gifting the funds directly to the client. Rather, third party/payor was helping to pay the lawyer for services rendered. Because the funds are trust funds, and the ownership of those funds are the property of the payor until the funds are earned by the lawyer, the lawyer is under an obligation pursuant to RPC 1.14 to return them to the payor.

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.