Attorney Doe handles personal injury cases and has a trust account.
Attorney Doe handles personal injury cases and has a trust account. Unfortunately, she was recently sued for malpractice — and lost. The judge ordered her to pay the plaintiff $1 million dollars.
Her trust account has $2.5 million dollars within it. Her business account has $500,000 in it, her personal account has $250,000 in it, and she is short by just $250,000 to be able to write the check to cover the $1 million dollar debt that is due.
She recently obtained a victory on a wrongful life lawsuit (with which you assisted a few weeks ago). The jury awarded her client $1 million. Attorney Doe will be receiving 33.3% of that award as her contingency fee for her work in that case.
Think through the answers to the following questions:
1) Is it okay for Attorney Doe to borrow the $250,000 from the trust account, and then replace it once the check for the contingency fee comes in the mail in roughly two weeks?
2) If so, why? If not, why not? What must be considered?
3) Is this an ethical dilemma? What rules of conduct could potentially be broken?
4) Do ethical rules apply to you too (in your position working at SuperLaw) or only to Attorney Doe?
5) What would you do under these circumstances?
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