South Carolina Bar Ethics Opinions
Free plain-English summaries of legal ethics opinions issued by the South Carolina Bar, with full citations and source links on every page.
No South Carolina Bar opinions match these filters
Try a different search term or clear the filters.
Can a lawyer authorize a government portal like Pay.gov to debit the trust account to pay a client's medical lien by ACH, and how is recordkeeping satisfied?
Yes. Comment 9 to Rule 1.15 is not an exclusive list, so a lawyer may authorize an ACH debit from the trust account to pay a lien or other client obligation; the lawyer must keep full documentation of…
Can a lawyer charge a payee to recover the stop-payment and reissuance costs for a trust-account check that was never cashed?
Yes. A lawyer may charge a check recipient an amount covering the administrative cost of resolving an uncashed trust-account check (such as stop-payment and postage fees) if the amount is not unreason…
When a prior law firm asserts a charging lien on a settlement, how much must successor counsel hold in trust, and does Rule 1.5(e) fee-sharing apply?
Successor counsel must hold in trust an amount equal to the prior firm's charging-lien claim until the dispute is resolved, unless the claim is frivolous under applicable law. The matter is governed b…
Can a lawyer accept client earnest-money deposits through PayPal, and when must those funds be moved into a trust account?
Yes. A lawyer may take earnest-money deposits through PayPal if the account holds no funds of the lawyer's own and records are kept; nominal or short-term funds must then move to an IOLTA account, and…
If a personal injury lawyer believes a hospital's claimed lien or assignment on the settlement is invalid and frivolous, must the lawyer still hold back funds to protect it?
No. Under Rule 1.15(e) a lawyer may refuse to protect a third party's claim on settlement funds if the lawyer believes in good faith that the claim is frivolous or without substantial grounds, though …
When a nonprofit pays into a lawyer's trust account to fund a client's representation, who owns and controls the money, and what must the lawyer tell the client?
The payor and client must sort out ownership between themselves; the lawyer must not arbitrate disputed funds. The lawyer decides how to apply the funds to the matter and cannot let the third-party pa…
Must appointed defense counsel personally pay an investigator for work the indigent-defense commission refused to cover?
No. Where the lawyer incurred no contractual obligation, the Rules of Professional Conduct do not require appointed counsel to supplement what the Commission on Indigent Defense pays; In re Jackson ad…
When a deceased client's file is demanded by the estate's personal representative, who was the client's adversary in life, must the lawyer turn it over?
Not without authorization. Confidentiality survives the client's death, so the lawyer may release file items only to the extent the deceased client or the probate court specifically authorized; anythi…
Can a lawyer apply a client's unearned retainer surplus left in trust on one matter to cover the client's unpaid fees on a different matter?
No. Unearned fees in a client trust account may be withdrawn only as fees are earned on the matter for which they were advanced or refunded to the client; a lawyer may not move them to offset an unpai…
When a landlord and the lawyer's own client both claim money held in the lawyer's trust account, may the lawyer release it, and to whom?
If the third party's (landlord's) claim to the funds is not frivolous, Rule 1.15 requires the lawyer to keep the disputed funds in trust until the dispute is resolved; the lawyer may not release them …
Must a South Carolina lawyer obtain extra insurance for client trust funds that exceed the FDIC coverage limit, or place them across multiple banks?
No. Rule 1.15 requires only reasonable steps to safeguard client funds. It does not require a lawyer to insure trust funds above the FDIC limit or to spread deposits across several banks; whether to i…
Can a lawyer treat cashier's checks and certified checks drawn on credit unions and other non-bank institutions as 'collected funds' under Rule 1.15(f), which by its terms refers only to a 'bank'?
Yes. Subject to future clarification from the South Carolina Supreme Court, the committee reads 'bank' in Rule 1.15(f) to include credit unions and other financial institutions as defined in IOLTA Rul…
When two LLC members both demand the company book after the lawyer who formed the LLC declined to represent either in their dispute, what must the lawyer do with it?
Absent a written engagement letter designating one member as the company's authorized representative, the lawyer must keep the company book until the dispute is resolved. Under Rule 1.15(e) property c…
When a pro se plaintiff's former lawyer claims a charging lien on the settlement, must defense counsel hold the disputed funds in trust even though neither claimant is her client?
Yes. The opinion concludes defense counsel may not pay all settlement proceeds to the pro se plaintiff; under Rule 1.15(e) she must keep the disputed portion separate in trust until the lien dispute i…
Can a real estate closing lawyer disburse at the closing table up to the amount of collected funds already deposited, before depositing the remaining cash-equivalent funds?
Yes. The opinion concludes a closing lawyer may 'table fund' a transaction by disbursing up to the amount of collected funds (or collected-fund equivalents) that have been deposited, even though other…
Can a closing firm move marked-up recording fees into a non-trust 'Recording Account' before disbursement, and keep the overcharge as profit?
Until the funds are disbursed they remain client funds and must stay in the trust account; a 'Recording Account' holding only the firm's own money is fine and the firm may tender a trust check directl…
Can a lawyer for an injured servicemember sign the Army's agreement to protect the government's medical-cost recovery out of any personal injury settlement?
Signing the Army's agreement would create a Rule 1.7(a)(2) conflict where liability is questionable and coverage is limited, because the government's independent claim would lower the client's net rec…
What should a lawyer do with trust-account funds for a settlement check that an insurer never cashed years ago?
The lawyer must safeguard the funds under Rule 1.15, take all notification steps in Rule 1.15 and Opinion 02-05 (including notice by publication), and then, because an uncashed mailed check is unclaim…
If a health insurer asserts a subrogation claim on settlement funds and the client tells the lawyer not to pay it, what must the lawyer do?
Because the lawyer has actual knowledge of the subrogation claim, Rule 1.15 requires holding the disputed funds in trust until the dispute between the client and the carrier is resolved, and the lawye…
Can a lawyer hold a client's alimony checks to collect unpaid process-server costs the client incurred during the case?
The lawyer may assert an equitable charging lien and hold only the disputed amount until the dispute is resolved, but the opinion warns the approach is risky here because the checks are payable to the…
When a relative pays a lawyer's flat fee for a client who then fires the lawyer and demands a refund, who gets the unearned portion, the client or the relative who paid?
The committee concluded the lawyer must not unilaterally decide whether the client or the third-party payor is entitled to the unearned fee; because both may have a claim (depending on whether the pay…
How can a lawyer close an old escrow account that still holds funds for stale, uncashed checks to clients who can't be located?
The committee concluded the lawyer may close the old account but may never keep the funds; after meeting Rule 1.15 (records and notice, including notice by publication) and waiting at least a year for…
If a doctor sends a form letter claiming Rule 1.15 gives him a lien on a client's settlement, must the lawyer pay the doctor's bill out of the recovery?
The committee concluded Rule 1.15 does not itself create a lien for the physician; the Rules of Professional Conduct do not create substantive rights, so without a valid lien or assignment the lawyer …
Does the six-year clock for keeping a client's financial records run from each matter ending or from the whole relationship ending?
The committee concluded that Rule 1.15(a)'s six-year record-retention period runs from the conclusion of each particular matter, not from the termination of the entire attorney-client relationship; ot…
Can a South Carolina lawyer collect a fee in a domestic case by suing on a note and foreclosing a mortgage given as security for the fee?
The committee concluded there is no general ethical bar to collecting a fee by suing on a note or foreclosing a mortgage given as security, but a lawyer may not take a security interest in property wh…
When a client disputes a medical lien on settlement proceeds, can the lawyer set a deadline for the lienholder to act and then pay the client?
The committee concluded a lawyer holding settlement proceeds subject to a valid assignment or lien may not impair the third party's rights by imposing a time limit on enforcement, and may not disburse…
How long must a lawyer keep a former client's property that is potential evidence, and how may the lawyer dispose of it if the client never retrieves it?
The committee concluded there is no fixed time; under Rule 1.15(a) the lawyer must safeguard a former client's non-fund property as a fiduciary until diligent return efforts and final notice have been…
What can a South Carolina lawyer do with stale, never-cashed trust-account checks owed to medical providers?
The committee concluded the lawyer may not donate the leftover trust funds to the Office of Appellate Defense or any other entity, because the uncashed checks belong to third parties under Rule 1.15(b…
When a successor lawyer settles a workers' comp case, what does she owe the discharged prior lawyer who had a contingency agreement and a fee claim?
The committee concluded the successor must hold the settlement funds, notify the prior lawyer, and deliver what he is owed under Rule 1.15 if he has a lien or fee interest, and must disclose the prior…
If a client signed a doctor's lien but the fee contract is silent on it, can the lawyer follow the client's instruction to disregard the lien and pay the client?
The committee concluded a lawyer who knows the client made a valid assignment of litigation proceeds to a medical provider may not ignore the assignee's rights and pay the funds to the client, even if…
Can a lawyer advise a personal-injury client about, and help carry out, a company's purchase or assignment of part of the client's expected recovery?
The committee concluded that, assuming the financing is legal under South Carolina law, a lawyer may advise a client about it with candid disclosure of advantages and disadvantages under Rule 2.1, and…
When a client tells the lawyer not to contact a health insurer with a possible subrogation claim, what must the lawyer still do?
The committee concluded the lawyer has no affirmative duty to notify the insurer of the tort action, but the duty of competence requires advising the client, before disbursing settlement funds, that t…
If a client signs a doctor's lien and later tells the lawyer to ignore it at disbursement, what must the lawyer do with the settlement money?
The committee concluded the lawyer may refuse the client's instruction to disregard a doctor's lien, but if the client disputes the provider's right to payment, the lawyer must notify the provider and…
Can a lawyer deposit the firm's own money into a client trust account to cover or avoid bank service charges?
The committee concluded that a lawyer or firm could deposit firm funds in a client trust account to pay or avoid bank service charges, so long as records were kept that identified the ownership of all…
After an insurer overpays a client because of the lawyer's earlier statement, must the lawyer disclose the overpayment or release the refunded money to the client?
The committee concluded the attorney has no duty to disclose to a third party unless disclosure is necessary to prevent the client's fraudulent act, and absent a fraud or crime the attorney must turn …
After an insurer overpays a client because of the lawyer's earlier statement, must the lawyer disclose the overpayment or release the refunded money to the client?
The committee concluded the attorney has no duty to disclose to a third party unless disclosure is necessary to prevent the client's fraudulent act, and absent a fraud or crime the attorney must turn …
Can a lawyer give another state's bar copies of escrow-account checks to help investigate a different lawyer?
The committee concluded that, absent a court order, releasing copies of escrow-account checks that reveal client information to another state bar without the clients' consent would violate Rule 1.6, b…
How long must a South Carolina law firm keep a closed client's file, and when may it destroy the contents?
The committee concluded there is no fixed minimum retention period; to the extent the file is the client's property, Rule 1.15 calls for keeping records six years after the representation ends, but co…
If a client tells the lawyer not to pay a medical provider's lien out of a settlement, must the lawyer honor that, and what changes if the lawyer signed the assignment?
The committee concluded that where the lawyer did not sign the client's medical lien/assignment, his duty of loyalty requires paying the settlement proceeds to the client, and Rule 1.6 bars revealing …
Can a lawyer trade help collecting a doctor's bills for patient referrals, and can a non-law business tell customers its lawyer escrows all sale proceeds?
The committee concluded that a lawyer may not exchange assistance in collecting a doctor's medical fees for referral of clients, because that gives something of value for a recommendation contrary to …
Can a lawyer post cash in lieu of a surety bond for a client, and from what kind of account should the check be drawn?
The committee concluded that a lawyer may not advance his own money as cash in lieu of a surety bond (that is prohibited financial assistance), but may post the client's own funds if the client is giv…
Browse South Carolina Bar opinions by topic
Legal ethics opinions from the South Carolina Bar interpret the rules of professional conduct for working lawyers, in response to inquiries from members and committees. They are not binding like court discipline decisions, but courts and discipline boards treat formal opinions as substantial guidance on how the rules apply. Every opinion above has a plain-English question and short answer, plus a link to the original source on the bar's site.