May a lawyer settle a workers' compensation claim while unable to find the client?

Plain-English summary

In a workers' compensation case, the lawyer received a settlement offer but could not find the client despite hiring a skip tracer. The lawyer proposed accepting the offer in writing, collecting the check and release, and holding them until contact was restored.

The answer rejects settling without the client's agreement or earlier authorization that covers the proposed terms. If a settlement is made for the client, the opinion says its proceeds should be placed in a separate interest-bearing trust account, with interest going to the client until the client is found.

Currency note

This opinion was issued in 1998, before Missouri's 2007 revisions to the Rules of Professional Conduct. 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. The official page notes later 2013 and 2016 amendments to Rule 4-1.15.

Common questions

Q: Does difficulty locating the client allow the lawyer to accept the offer?

A: No. The opinion requires the client's agreement or prior authorization covering the settlement terms.

Q: Where does the opinion say to hold authorized settlement funds?

A: It says a separate interest-bearing trust account, with interest going to the client until the client is located.

Background and rules framework

The answer addresses client authority over settlement and the treatment of client funds. The official page's reference notes identify later amendments to Rule 4-1.15.

Citations and references

Missouri Rules of Professional Conduct:

• Rule 4-1.15, cited in the official reference notes

See also

• Missouri Informal Op. 20000007: Unlocated Client Refund
• Missouri Informal Op. 980052: Interest on Judgment Funds

Source

• Landing page: https://mo-legal-ethics.org/informal-opinion/980007/

Original opinion text

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

Reference Note: Effective July 1, 2016, subdivision 4–1.15(f) of Rule 4 was repealed and a new subdivision 4–1.15(f) adopted in lieu thereof. This opinion is based on Rule 4–1.15 in effect prior to that date.

Reference Note: Rule 4–1.15 was amended, effective July 1, 2013. This opinion is based on the rule in effect prior to that date. Please see the July 1, 2013 version of Rule 4–1.15.

QUESTION: Attorney represents a client in a workers” compensation case. Attorney has received a settlement offer, but is unable to locate the client. Attorney has hired a skip tracer, but efforts to find the client have so far been unsuccessful. Attorney would like to agree to the settlement in writing, get the check and the release from the defendant in the case and then hold on to them until Attorney can find the client. May Attorney do this? ANSWER: Attorney may not settle the case unless Attorney´s client agrees to the settlement or has previously given Attorney authorization which would include settlement on the proposed terms. If Attorney does settle the case for Attorney´s client, the settlement funds should be placed in a separate interest bearing trust account, with the interest going to the client, until the client is located.