Safekeeping Property · 2-8% of the exam
20.2.2Notification, delivery, and accounting (Rule 1.15(d))
On this page
- Rule 1.15(d) — Notification, delivery, and accounting
Why
Placing funds in the right account is not the end of the duty. A client who is not told the money arrived cannot ask for it, and money correctly deposited but held back is no more use to its owner than money still sitting with whoever paid it.
Plain English
Notification and delivery arise automatically upon receipt; no request is needed. Accounting arises only upon request. "Promptly" is the operative standard for all three. Delivery covers funds or property the client or third person is entitled to receive, unless this rule, other law, or an agreement with the client permits the lawyer to hold them.
Rule
Rule 1.15(d) — Notification, delivery, and accounting
Upon receiving funds or property in which a client or third person has an interest, a lawyer must:
- Promptly notify the client or third person of receipt; no waiting for processing, clearance, or convenience.
- Promptly deliver to the client or third person any funds or property they are entitled to receive, unless this rule, other law, or an agreement with the client permits the lawyer to hold them.
- Promptly render a full accounting upon request by the client or third person.
Notification and delivery arise automatically upon receipt; no request is needed.
The accounting duty arises upon request only and is not a spontaneous obligation.
Delay in delivery is a violation even if the full amount is eventually delivered correctly.
Example 1
Ex. 1
Ivan settles a personal-injury case for his client Jay. The settlement check arrives Monday. He deposits it Thursday and does not tell Jay until Wednesday, reasoning the bank hold should clear first. He transfers Jay's net proceeds two weeks later, once he finishes calculating costs and fees.
Ivan violated Rule 1.15(d) twice. The notification duty arose Monday, not when the hold cleared; waiting until Wednesday was late. The delivery duty also arose promptly once Jay's portion was ascertainable; two weeks was late. Receiving the correct amount eventually does not cure either timing violation. Lay Ivan's dates against the day the check arrived and read each delay from there.
Trap
Tip
Questions · 2
Q 01ch20-e05
Question 1 of 2 · Rule 1.15(d)
Attorney represented Client in a claim over defective roofing work on a warehouse. The claim settled, and the Contractor's insurer wired ninety thousand dollars into Attorney's client trust account on a Tuesday. Attorney saw the wire the day it landed but said nothing to Client, wanting first to confirm that the transfer could not be reversed and to work out the costs that would be deducted. Attorney told Client about the money nine business days later and paid over Client's share the following week. The amount paid over was correct to the dollar, and Client had not asked about the settlement in the meantime. Is Attorney subject to discipline?
Keys 1 to 4 choose.