Can a Maine lawyer keep the client trust account in an out-of-state bank that is closer to the office than any in-state bank?

Plain-English summary

A Maine lawyer whose office sat in a town on the Maine-New Hampshire border asked whether he could keep his client account in a New Hampshire bank rather than a Maine bank. The New Hampshire bank was about three-tenths of a mile away, across the river, while the nearest Maine bank was four or five miles from the office. The funds passing through the account came mainly from collection cases in which he represented both New Hampshire and Maine creditors, and some debtors making monthly payments lived in either state. The lawyer said keeping the account at a Maine bank several miles away would be cumbersome and would inconvenience his clients.

The Commission acknowledged that Rule 3.6(f)(1) might cause some inconvenience here, but concluded the rule still required the lawyer to deposit client account funds in one or more bank accounts maintained in Maine. The rule provides that all client funds paid to a lawyer (other than retainers and advances for costs and expenses) must be deposited in one or more identifiable bank accounts maintained in the state in which the law office is situated, with only narrow allowances for funds to cover bank charges and for mixed lawyer-client funds.

The Commission found the rule contains no exception to its requirement that client funds be deposited in a bank account maintained in the state where the office is located. Because the lawyer's office was in Maine, the rule required him to maintain the client account in a Maine bank.

Currency note

This opinion was issued in 1982, before Maine's replacement of the former Maine Bar Rules with the Maine Rules of Professional Conduct (effective August 1, 2009). Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule, deadline, or requirement mentioned here.

Common questions

Q: Must a lawyer's client trust account be in the same state as the office?

A: Under this opinion, yes for Maine at the time. Rule 3.6(f)(1) required client funds to be deposited in a bank account maintained in the state where the law office is situated.

Q: Does proximity or convenience create an exception?

A: The opinion concluded no. The Commission acknowledged the inconvenience but found the rule contained no exception, so a closer out-of-state bank could not be used for the client account.

Background and rules framework

The opinion interprets Maine Bar Rule 3.6(f)(1), which required client funds to be held in identifiable bank accounts maintained in the state where the law office is located, with narrow allowances for bank-charge funds and mixed lawyer-client funds. That provision corresponds to Model Rule 1.15 (safekeeping of client property and funds). The analysis is a straightforward application of the rule's text, which the Commission found admits no convenience or proximity exception.

Citations and references

Rules of Professional Conduct:

• Model Rule 1.15 (safekeeping property)
• Maine Bar Rule 3.6(f)(1)

See also

• Maine Ethics Op. 43: Real Estate Purchase Price in Trust
• Maine Ethics Op. 106: Law Firm as Escrow Agent for Both Parties
• Maine Ethics Op. 116: Client Funds Owed to Third Parties

Source

• Landing page: https://mebaroverseers.org/attorney_services/opinion.html?id=89532

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

Issued by the Professional Ethics Commission

Date Issued: February 4, 1982

Question

A Maine lawyer whose law office is located in a Maine town on the Maine-New Hampshire border has inquired if he may maintain his client account in a New Hampshire bank instead of in a Maine bank. The New Hampshire bank is located "across the river" approximately 3/10 of a mile from his law office, while the nearest banking institution in Maine is located at a distance of some four or five miles from the lawyer's office. The funds which pass through the lawyer's client account are mainly derived from collection cases in which the lawyer represents as clients both New Hampshire and Maine creditors. In addition several debtors who make monthly payments to his office reside in either Maine or New Hampshire.

The lawyer asserts that it would not only be "awfully cumbersome," but would also cause "great inconvenience to my clients" in the event that he were required to maintain his client account in a Maine banking institution located several miles from his office.

Opinion

While recognizing that Rule 3.6(f)(1) may cause some inconvenience in a situation such as that presented by this inquiry, the Commission concludes that Rule 3.6(f)(1) requires the lawyer to deposit his client account funds in one or more bank accounts maintained in the state of Maine. Rule 3.6(f)(1) in relevant part, provides:

All funds of clients paid to a lawyer or law firm, other than retainers and advances for costs and expenses, shall be deposited in one or more identifiable bank accounts maintained in the state in which the law office is situated, and no funds belonging to the lawyer or law firm shall be deposited therein except as follows:

(i) Funds reasonably sufficient to pay bank charges may be deposited therein; and

(ii) Funds belonging in part to a client and in part presently or potentially to the lawyer or law firm must be deposited therein, but the portion belonging to the lawyer or law firm may be withdrawn when due unless the right of the lawyer or law firm to receive it is disputed by the client; in that event the disputed portion shall not be withdrawn until the dispute is finally resolved.

This Rule contains no exception to its requirement that clients' funds paid to a lawyer be deposited in one or more bank accounts maintained in the state in which the lawyer's law office is situated. Because the lawyer's office is located in Maine, the Rule requires that he maintain his client account in a bank account in the state of Maine.