Ethics Question of the Week: Can I give client advance before settlement check clears?
Q. I just received a settlement check in a personal injury matter. Can I go ahead and advance the client’s portion to her before the settlement check clears?
A. No. RPC 1.15 governs safekeeping a client’s property and addresses issues of conversion and commingling. According to the ARDC’s Client Trust Account Handbook, misappropriation of client funds includes when a lawyer disburses trust funds to one client before the deposits, which are the source of the disbursement, have either cleared or are at least available for withdrawal, thereby using one client's funds to pay another client.
ISBA members can browse past ISBA Ethics Opinions, access our Ethics Hotline, and other resources on the ISBA Ethics Page.
[Disclaimer. These questions are representative of calls received on the ISBA’s ethics hotline. The information provided below is meant as an educational tool to highlight potentially applicable Illinois RPC or other ethics resources that might help the lawyer answer the question posed. The information provided isn’t legal advice. Because every situation is different, often complex, and the law is constantly evolving, you shouldn’t rely upon this general information without conducting your own research.]
Member Comments (1)
Have you answered the question asked? The question seems to indicate that the lawyer has only one client. The lawyer proposes to advance his/her OWN funds to that client, not another client's funds.