Multistate Professional Responsibility Exam Practice Question
An attorney receives settlement proceeds of 20,000 for a client after a vehicle accident. The chiropractor who treated the client claims part of the settlement, but the client disagrees and insists on receiving the entire amount. The attorney is unsure how to handle the request and the chiropractor’s claim. Which option describes the lawyer’s responsibility in this situation?
Transfer money from the attorney’s operating account to pay the chiropractor’s share
Divide the proceeds between the client and the chiropractor
Disburse the settlement funds to the client while advising the chiropractor to pursue legal action
Keep the disputed sum in the trust account and release the rest of the funds to the client
Holding the disputed portion in the trust account allows time for a proper resolution of the conflicting claims. The undisputed funds should be promptly released to the client. Disbursing all settlement money to the client disregards the separate claim. Splitting the proceeds arbitrarily or using the operating account fails to safeguard the disputed amounts in a trust account, violating ethical duties.
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