Advisory Opinion:
1664
Year Issued:
1996
RPC(s):
RPC 1.3; 1.4; 1.8(h); 1.14(a)(2)
1.14(a)(2)
Subject:
Trust account; client refuses to cash trust check; duty to resolve dispute with client; release of lawyer's liability for malpractice
The Committee discussed your inquiry regarding what to do with trust account funds rightfully belonging to your client that your client will not accept. You settled a UIM claim for $25,000, attempted to disburse $20,000 of the settlement to your client, while keeping $5,000 as your discounted attorney's fee. Your client is unhappy with your representation and will not cash the $20,000 settlement check.
The Committee concluded that: (1) You need to determine if there is a dispute with respect to the $5,000 you kept for your attorney's fee. If there is a dispute regarding the amount of your fee, then you need to replenish your client trust account with the disputed amount and then resolve the dispute. (2) You need to communicate to your client that you should not have included a release from liability in the receipt of trust funds document you sent your client for the $20,000 settlement amount. This release is in violation of RPC 1.8(h). If your client is entitled to the $20,000, you have a duty to disburse that amount to the client without any strings attached. (3) You have a duty under RPC 1.3 and 1.4 to
represent your client diligently, to adopt an effective way to communicate with your client, and to make sure that she has received your communications. (4) You have a duty under RPC 1.14(a)(2) to engage in whatever court proceedings are necessary to resolve the disputes regarding the settlement funds rather than just leave the funds in the trust account.
***
