A personal injury attorney was handling a negligence claim. The insurance company offered to settle, and the client accepted the settlement offer. Once the settlement agreement was finalized, the insurance company delivered a check for the amount of the settlement to the lawyer's office. The lawyer was in a hurry to leave for a continuing legal education seminar and put the check in a drawer in his desk. The attorney's bookkeeper knew the check was in the desk drawer. She took the check, endorsed it over to herself, and forged the attorney's signature. She then cashed the check and skipped town, never to be seen again. Is the attorney subject to discipline under the Model Rules of Professional Conduct?

Question

Quizplus · Accepted Answer

Yes, because the funds belong to the client and the attorney did not safeguard the check. "A lawyer should hold property of others with the care required of a professional fiduciary." Model Rule 1.15, comment 1. "A lawyer shall hold property of clients . . . separate from the lawyer's own property." Model Rule 1.15(a). Answer B is the best choice because placing the check in a drawer where others knew it could be found falls below the level of care expected of a professional fiduciary. Answer C is not the best choice because the more responsible approach would be to give it to the bookkeeper immediately with instructions to deposit it. In that case, if the bookkeeper stole the funds, the attorney would (likely) not be subject to discipline.

A Personal Injury Attorney Was Handling a Negligence Claim