RPC 1.15A - Safeguarding Property

Comments for RPC 1.15A must be received no later than September 30, 2020.


RPC 1.15A_h_9 GR 9 per ROD 112619 edits

GR 9 COVER SHEET

Suggested Amendment to

RULES OF PROFESSIONAL CONDUCT (RPC)

Rule 1.15A – Safeguarding Property



    A. Proponent: Washington State Bar Association, Board of Governors, Committee on Professional Ethics

    B. Spokepersons:

    Terra Nevitt, Interim Executive Director, Washington State Bar Association, 1325 4th Avenue, Suite 600, Seattle, WA 98101-2539

    Jeanne Marie Clavere, Professional Responsibility Counsel, Washington State Bar Association, 1325 4th Avenue, Suite 600, Seattle, WA 98101-2539

    C. Purpose:

    The purpose of the suggested amendment to RPC 1.15A(h)(9) is to address the limitation of who can be a signatory on a lawyer trust account. While RPC 1.15A(h)(9) permits an LLLT to be a signatory, the second sentence of the rule states: "If a lawyer is associated in a practice with one or more LLLT's, any check or other instrument requiring a signature must be signed by a signatory lawyer in the firm." The amendment would strike that sentence, thereby permitting an LLLT to be a signatory on a law firm's trust account without restrictions.

    Prior to the 2006 RPC amendments, anyone could be a signatory on a trust account without restrictions, and law firms frequently included bookkeepers or other nonlawyer staff as signatories. The Ethics 2003 Committee proposed that RPC 1.15A permit only lawyers to be signatories to protect against theft by nonlawyers employed at law firms, and this change was made to the RPC. The rule was later amended to permit LLLTs to be signatories with the limitation noted above.

    The requirement for a second signature by a lawyer on any instrument signed by an LLLT is not necessary and unduly limits an LLLT's ability to disburse funds from a trust account. Unlike nonlawyers, LLLTs are licensed legal professionals who are subject to discipline. The current rule makes it more difficult for an LLLT to disburse funds to the LLLT's own clients because the LLLT must obtain the signature of a lawyer on the check. At small firms, the LLLT's clients may be unnecessarily delayed in receiving checks if the firm's sole lawyer is out of the office and unable to authorize the check.

    In addition, an LLLT who is not associated in a practice with a lawyer is authorized to sign trust account checks alone, while an LLLT who is associated in a practice with one or more lawyers would not be permitted to do so as the rule is currently written.

    In February 2019, the LLLT Board approved a suggested amendment to the LLLT RPC that exactly parallels the suggested amendment to the Lawyer RPC. The LLLT Board is forwarding its suggested amendment to the Court in conjunction with this suggested amendment.

    D. Hearing: A hearing is not requested.

    E. Expedited Consideration: Expedited consideration is not requested.

    F. Supporting Material: Suggested Rule Amendment to RPC 1.15A

 

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