Duty to Safeguard Property

Question 1

Duty to Safeguard Property–In General

Answer 1

A lawyer MUST hold the property of a client or third-person that is in the lawyer’s possession separate from the lawyer’s own property.

Question 2

Duty to Safeguard Property–Client Funds

Answer 2

All client funds (including advances of fees, costs, and expenses) MUST be kept in a separate attorney trust account. Client funds shall be withdrawn only as fees are earned or expenses incurred.

Question 3

Duty to Safeguard Property–Lawyer’s Funds in Client’s Trust Account

Answer 3

Funds belonging to the lawyer CANNOT be deposited into the trust account EXCEPT:

(a) funds reasonably sufficient to pay bank charges; OR
(b) funds belonging in part to both the client and lawyer, which must be withdrawn at the earliest reasonable time [CA only].

Question 4

Duty to Safeguard Property–Location of Trust Account

Answer 4

Unless the client consents to another place, the trust account must be located in the state of the lawyer’s office [under the ABA] or in the State of California [under CA rules].

Question 5

Duty to Safeguard Property–Returning Client’s Property

Answer 5

A lawyer MUST return all client property (including all documents related to the representation) to client upon the client’s request or at the end of the representation. In CA, a lawyer CANNOT withhold a client’s case file for the purpose of getting paid.