Attorney Samuel C. Stretton, who has practiced in the area of legal and judicial ethics for more than 35 years, answers attorneys' questions about fees. One attorney who was discharged by a client wonders whether it is OK to subtract an outstanding legal fee from escrow money being held for the client on an unrelated matter. And another attorney who is serving as the executor of a decedent's estate questions whether he or she may receive a referral fee for referring a related wrongful death matter to a law firm.
May 26, 2010 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
A lawyer may not rectify a client’s unpaid fees by using held funds.
Q: Recently, I was discharged by a client. I am holding several thousand dollars of escrow money for the client on an unrelated matter that involved a real estate settlement. The client also owes me several thousand dollars. Since I have been discharged, can I return the escrow money, minus my legal fee, when I return the client’s file?
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