LLLT RPC 1.15A - Safeguarding Property

• Proposed Changes to LLLT RPC 1.15A - Safeguarding Property (in Word Format)
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GR 9 COVER SHEET

Suggested Amendment to

LIMITED LICENSE LEGAL TECHNICIAN

RULES OF PROFESSIONAL CONDUCT (LLLT RPC)

RULE 1.15A – Safeguarding Property

Submitted by the Limited License Legal Technician Board

A. Name of Proponent:

Limited License Legal Technician (LLLT) Board

Staff Liaison/Contact:

Renata de Carvalho Garcia, Innovative Licensing Programs Manager

Washington State Bar Association (WSBA)

1325 Fourth Avenue, Suite 600

Seattle, WA 98101-2539

B. Spokesperson:

Stephen R. Crossland

Chair of the LLLT Board

P.O. Box 566

Cashmere, WA 98815

C. Purpose:

The suggested amendment to LLLT RPC 1.15A(h)(9) parallels and is presented in conjunction with the suggested amendment to Lawyer RPC 1.15A(h)(9). The purpose of the suggested amendment is to address the limitation of who can be a signatory on an LLLT client trust account. LLLT RPC 1.15(h)(9) permits an LLLT to be a trust account signatory. (“Only an LLLT or lawyer admitted to practice law may be an authorized signatory on the account.”) That is only true, however, if an LLLT is not associated in practice with a lawyer, as established in the following sentence of the rule: “If an LLLT is associated in a practice with one or more lawyers, any check or other instrument requiring a signature must be signed by a signatory lawyer in the firm.” The suggested amendment seeks to strike this sentence and consequently eliminate the restriction that an LLLT who is associated in a practice with one or more lawyers cannot sign trust account checks.

LLLTs are licensed legal professionals authorized to disburse funds from their client trust accounts. Like lawyers, LLLTs are subject to discipline for mishandling trust account funds and should, therefore, not be held to a different standard for disbursing funds. Furthermore, a requirement that a lawyer authorize disbursement when anLLLT is in practice with one or more lawyers unduly limits an LLLT’s ability and duty to disburse funds from a client trust account in a timely manner. The current rule makes it more difficult for an LLLT to disburse funds to an LLLT’s own clients because the LLLT must obtain the signature of a lawyer. At small law firms, for example, the LLLT’s clients may be unnecessarily delayed in receiving funds if the firm’s sole lawyer is out of the office or otherwise unable to authorize disbursement. This suggested amendment gives LLLTs the responsibility they already have without that limitation.

Finally, considering the change will also impact the Lawyer RPC, it is important to note that the Committee on Professional Ethics and the LLLT Board have been coordinating their efforts in regard to this amendment. The suggested amendment to LLLT RPC 1.15A(h)(9) was approved by the LLLT Board at its February 2019 meeting. The parallel suggested amendment to Lawyer RPC 1.15A(h)(9) was approved by the Board of Governors at its July 2019 meeting. Both suggested amendments are being submitted simultaneously to the Court.

D. Hearing: A hearing is not requested.

E. Expedited Consideration: Expedited consideration is not requested.

F. Supporting Materials: Suggested Rule Amendment to LLLT RPC 1.15A(h)(9).