When a lawyer holds a minor's blocked settlement account, must the lawyer share account information with the child's mother and report concerns to the court?

Plain-English summary

The inquirer had represented a minor in a personal-injury case that settled, with the proceeds placed in a blocked bank account until the minor reached majority. The lawyer was the only account signatory. The child's mother, not on the account, requested account information, and the lawyer suspected she might want the money for her own purposes. The inquirer asked whether disclosing the bank information to the mother would violate a duty owed to the child, and whether the lawyer had a duty to report the suspicions to the court.

The committee noted that its response was limited because it may not opine on a lawyer's prior conduct and because it had insufficient information to determine whether the child was the inquirer's only client.

On the request for account information, the committee said RPC 1.4(a) requires that "a lawyer shall . . . promptly comply with reasonable requests for information" from the client, and that lawyers typically communicate information to the guardian of a minor. It added that RPC 1.14(b)(3) requires a lawyer to maintain records of all client funds, securities, and other property coming into the lawyer's possession and to render appropriate accounts to the client, and that, because the inquirer was the only signatory, the account information was client property in the lawyer's possession.

On reporting to the court, the committee said RPC 1.13(b) provides that if "a lawyer reasonably believes that the client cannot adequately act in the client's own interests, a lawyer may seek the appointment of a guardian or take other protective action," and that the rules do not specify what that action may be. It concluded that, even though the account was blocked, if the inquirer reasonably believed the funds were not adequately protected, the inquirer could proceed under RPC 1.13(b).

Currency note

This opinion was issued in 2001, before the Washington State Bar Association's adoption of the 2006 revisions to the Rules of Professional Conduct. At the time, Washington's RPC 1.13 governed a client under a disability (the subject of Model Rule 1.14, diminished capacity) and Washington's RPC 1.14 governed safekeeping of client property (the subject of Model Rule 1.15); Washington renumbered these provisions in the 2006 revisions. 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 the lawyer give the minor's mother the blocked-account information?

A: The committee said RPC 1.4(a) requires complying with reasonable requests for information, and that lawyers typically communicate information to the guardian of a minor; it did not resolve the mother's status given limited facts.

Q: Are the account records the lawyer's or the client's?

A: The committee said that, because the lawyer was the only signatory, the account information was client property in the lawyer's possession, which RPC 1.14(b)(3) requires the lawyer to keep records of and account for.

Q: Can the lawyer act to protect the funds if they appear at risk?

A: The committee said that if the lawyer reasonably believed the funds were not adequately protected, the lawyer could seek a guardian or take other protective action under RPC 1.13(b), even though the account was blocked.

Background and rules framework

The opinion applies three Washington rules in their pre-2006 numbering: RPC 1.4(a) (communication; prompt response to reasonable requests for information; Model Rule 1.4), RPC 1.14(b)(3) (safekeeping of client property; recordkeeping and accounting; the subject of Model Rule 1.15), and RPC 1.13(b) (a client under a disability; seeking a guardian or protective action; the subject of Model Rule 1.14). Washington renumbered the latter two provisions in the 2006 revisions.

Citations and references

Rules of Professional Conduct:

• Model Rule 1.4 / Washington RPC 1.4(a) (communication; reasonable requests for information)
• Model Rule 1.15 / Washington RPC 1.14(b)(3) (safekeeping of client property; recordkeeping, pre-2006 numbering)
• Model Rule 1.14 / Washington RPC 1.13(b) (client under a disability; protective action, pre-2006 numbering)

See also

• WSBA Ethics Op. 1957: Client Trust Funds Must Be Insured
• WSBA Ethics Op. 1204: Client Under a Disability
• WSBA Ethics Op. 1748: Trust Funds of a Missing Client

Source

• Landing page: https://ao.wsba.org/print.aspx?ID=1206

Original opinion text

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

Advisory Opinion: 1964
Year Issued: 2001
RPC(s): RPC 1.4(a); 1.13(b); 1.14(b)(3)
Subject: Minor settlement placed in blocked account; duty of lawyer to protect funds

The inquirer represented a minor in a personal injury case resulting in a settlement and placement of the proceeds into a blocked bank account until the minor reached majority. The lawyer is the only account signatory. The child’s mother is not on the account but has recently requested account information. The lawyer suspects that the mother may want the money to use for her own purposes. The inquirer asks if disclosure of bank information to the mother violates an ethical duty owed to the child and if the lawyer has an ethical duty to report the suspicions to the court.

The committee’s response is limited by the fact that the committee may not opine on the prior conduct of a lawyer, and the fact that the committee has insufficient information to determine whether the child is the inquirer’s only client. As to the request for bank account information, RPC 1.4(a) requires that "a lawyer shall . . . promptly comply with reasonable requests for information" from the client. Typically lawyers communicate information to the guardian of a minor. Further, RPC 1.14(b)(3) requires that a lawyer shall maintain records of all funds, securities and other properties of a client coming into the possession of the lawyer and render appropriate accounts to his or her client regarding them. Since the inquirer is the only signatory on the minor’s bank account, there is no question that the information on this account is the property of a client that is in the possession of the inquiring lawyer.

As to the second question, RPC 1.13(b) states that if "a lawyer reasonably believes that the client cannot adequately act in the client’s own interests, a lawyer may seek the appointment of a guardian or take other protective action . . . ." The rules do not specifically address what that action may be. The funds in this case are in a blocked account, the information concerning which is accessible only by the inquiring lawyer. If, despite the fact that the account is blocked, the inquirer has a reasonable belief that the funds are not adequately protected, the inquirer may proceed under RPC 1.13(b).