I was a defendant in a lawsuit and in a settlement offer agreed to make monthly payments to the plantiff. I send the payments to the plantiffs attorney and not her directly. I make the check to a Trust Account." WHY? My accountant and my lawyer think that her lawyer is ripping her off for the money.
That is OKAY by me but I wonder if she is getting any of the money.
2007-12-13 08:38:42 · 6 answers · asked by charlotte q 2 in Politics & Government ➔ Law & Ethics
The lawyer has a legal and ethical obligation to pay her the share of settlement she is entitled to. If he does not, he can be sued by her, disciplined by the State Bar and/or disbarred.
That would have nothing to do with you, however.
2007-12-13 09:06:27 · answer #1 · answered by raichasays 7 · 0⤊ 0⤋
OK, the "client trust account" is set up for funds belonging solely to the client, and to which none belong to the attorney until they are earned. Most states require that they be in interest bearing accounts.
In a settlement such as yours, the deposit goes to the trust account because it is funds that belong to the client. Another reason is that it makes it clear that these funds are not income to the attorney.
Once the money has been deposited in the trust account, the attorney disburses the funds according to the attorney-client contract. So, for example, if the split on the whole settlement was 10% to case expenses, 33% to attorney fees and the balance to client recovery, then every check you send will be disbursed in those percentages. And separate checks will be cut in order to do accounting. But since you have no idea what the attorney-client contract was like (and since it is privileged, you won't), then you don't know how the split is made.
** Note: This answer has not created an attorney-client relationship. This is a general discussion of the subject matter of your question and not legal advice. Local laws or your particular situation may change the general rules. For a specific answer to your question you should consult legal counsel with whom you can discuss all the facts of your case. **
2007-12-13 16:51:56 · answer #2 · answered by scottclear 6 · 1⤊ 0⤋
I think your lawyer has been having too many three martini lunches.
It is absolutely standard practice for the settlement in a judgment to be baid into a client trust fund. the lawyer then takes his percentage and passes the rest on to the plaintiff.
There's a special legal term for lawyers who let their clients get the whole settlement and then expect to get paid out of it.... "Broke"
Clients LOVE their lawyers when they get a settlement or a judgment. Once they have to PAY, though, they invariably start thinking "You, know, I could have done that myself...."
Richard
2007-12-13 16:41:24 · answer #3 · answered by rickinnocal 7 · 0⤊ 0⤋
Its a common practice. If it says trust, the other attorney can deposit the check and without a clients signature and then take out his attorney fee. That is assuming he is legally entitled to a fee. I don't see a problem. Most attorneys I know would not assume that her attorney as"ripping her off."
2007-12-13 16:44:25 · answer #4 · answered by WVAttorney 3 · 2⤊ 0⤋
The attorney may have deferred his fees so that he takes his percentage out of each payment, rather than in a lump sum.
If she is being ripped off that is her problem, not yours. Yours, is to comply with settlement agreement.
2007-12-13 16:42:58 · answer #5 · answered by Anonymous · 3⤊ 1⤋
this is a common arrangement because the plaintiff's lawyer probably didn't get paid up front for his services. therefore he would deduct a percentage from what you put it in before forwarding it to the plaintiff. do you really have any concrete evidence that the plaintiff's lawyer is ripping off his client?
2007-12-13 16:44:03 · answer #6 · answered by njyogibear 7 · 1⤊ 0⤋