What did the opinion say about disputed proceeds claimed by a health care provider?

Plain-English summary

A client had authorized a lawyer to withhold amounts due to health care providers from proceeds. A provider claimed payment, but the client disputed its agreement and directed the lawyer to pay the proceeds to the client.

If the lawyer was not involved in agreements between the client and doctor, the opinion allowed the lawyer to honor the client's directive or hold the disputed funds in trust. If held funds remained disputed for a reasonable time, the lawyer would have to interplead them. If the lawyer participated in the agreement, the opinion required holding the funds in trust until resolution and filing an interpleader action if the dispute persisted. It expressly left possible civil liability unaddressed.

Currency note

This 1994 opinion predates Missouri's 2007 amendments to its Rules of Professional Conduct. An official reference note identifies July 1, 2007 amendments to Rules 4-1.9 and 4-1.10. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context and verify current rules before relying on it.

Common questions

Q: Could a lawyer uninvolved in the provider agreement pay the client?

A: Yes. The opinion allowed that lawyer to honor the client's directive or hold the funds in trust.

Q: What if the lawyer participated in the agreement?

A: The opinion required holding the funds in trust until resolution and filing interpleader if the dispute remained unresolved for a reasonable time.

Q: Did the opinion address civil liability?

A: No. It limited its advice to ethical aspects of the question.

Background and rules framework

The opinion distinguished the lawyer's trust-account duties according to whether the lawyer participated in the client-provider agreement. It cited no numbered rule.

See also

• Missouri Informal Op. 970075: Disputed settlement funds and interpleader
• Missouri Informal Op. 20000023: Interpleader fees in lien dispute

Source

• Landing page: https://mo-legal-ethics.org/informal-opinion/940137/

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

QUESTION: Client signed a contract authorizing Attorney to withhold amounts due to health care providers when Attorney distributes proceeds to client. Health care provider makes a claim. Client disputes the terms of the arrangement with the health care provider. Client instructs Attorney to pay no portion of the proceeds to the health care provider and to pay those amounts to client. ANSWER: If Attorney was not involved in any of the agreements between the client and the doctor, Attorney may honor the client´s directive and pay the proceeds to the client. Alternatively, Attorney may hold the funds in Attorney´s trust account until the dispute can be resolved. If the dispute is not resolved in a reasonable time, Attorney would have to interplead the funds. If Attorney was a participant in the agreement between the client and the health care provider, Attorney must hold the funds in Attorney´s trust account until the dispute is resolved. If the dispute is not resolved in a reasonable time, Attorney must file an interpleader action. This advice only addresses the ethical aspects of this question. It does not address issues of possible civil liability.