An attorney represented a client who was the plaintiff in a personal injury action. The personal injury action was settled, and the attorney received a check in the amount of $10,000 payable to the attorney. The attorney deposited the check in her clients’ trust account. One day later, the attorney received a letter from a bank, which had heard of the settlement of the personal injury lawsuit. The bank informed the attorney that the client had failed to make his monthly mortgage payments for the last three months and demanded that the attorney immediately release $900 of the proceeds of the settlement to the bank or the bank would institute mortgage foreclosure proceedings against the client. The attorney informed the client of the bank’s letter. The client did not dispute the $900 debt to the bank, but responded: “I don’t care what the bank does. The property is essentially worthless, so let the bank foreclose. If the bank wants to sue me, I’ll be easy enough to find. I don’t think they’ll even bother. You just take your legal fees and turn the rest of the proceeds over to me.” Is the attorney subject to discipline if she follows the client’s instructions?
No. The attorney is obligated to follow the client’s instructions. The attorney has satisfied her obligation to inform the client of the bank’s letter and has no obligation to the bank nor any right to distribute the client’s proceeds to the third party bank.
