Multistate Professional Responsibility Exam Practice Question
An attorney receives a deposit check from a real estate transaction involving a client. A broker claims a portion of the deposit as commission, but the client disputes that claim. Which approach is consistent with an attorney's duty regarding property claimed by a non-client?
Separate the disputed portion of the deposit in the trust account until the matter is resolved, disbursing what is not contested once appropriate.
Provide the deposit to the broker, then direct the broker to give a refund to the client if the dispute is resolved in the client's favor.
Place the deposit in the attorney's business account and subtract the broker's claim if the dispute is resolved in the broker's favor.
Distribute the deposit to the client upon request, leaving the broker to pursue independent legal action.
Under ABA Model Rule 1.15(e), when a lawyer possesses property in which both a client and a third person assert interests, the lawyer must keep the disputed portion separate in a trust account until the dispute is resolved. The lawyer should promptly distribute any portion that is not in dispute. Giving all funds to either claimant before resolution ignores the other party's potential rights, and placing the money in the lawyer's business or personal account would commingle client funds with the lawyer's own, violating Rule 1.15(a). Retaining only the disputed amount in the trust account protects all parties while allowing undisputed funds to be disbursed.
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Multistate Professional Responsibility Exam
Safekeeping funds and other property
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