Multistate Professional Responsibility Exam Practice Question
Clark represents Tania in a wrongful death matter. After obtaining a settlement for Tania, Clark learns that Tania disagrees about the portion Clark claims under their fee agreement. Which choice is the best approach for Clark in handling the settlement funds under these circumstances?
Secure the disputed portion in the lawyer’s trust account while distributing any undisputed amounts to Tania
Hold the entire settlement until the parties agree on distribution
Place a portion of the settlement into the lawyer’s personal account to later reimburse Tania if Tania’s claim is validated
Send a portion of the settlement to Tania and request a later payment for fees once Tania is satisfied
A lawyer must hold contested amounts in a properly maintained trust account while releasing the rest to the client, ensuring the funds remain protected while the dispute is resolved. Other methods deprive the client of funds that are not contested or risk mixing client money with the lawyer’s personal assets, which violates professional conduct rules.
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