Could a lawyer disregard a doctor’s lien arrangement the lawyer had signed when the client later objected?

Plain-English summary

Both a client and lawyer had signed a doctor’s lien forms to obtain medical records. The proposed settlement could not cover the doctor’s bill, and the client directed the lawyer to disregard the arrangement.

The opinion said the lawyer could not disregard an arrangement in which the lawyer participated. On receipt, settlement funds had to remain in trust until the client and doctor agreed on distribution. The lawyer could help negotiate; if no agreement came within a reasonable time, interpleader was necessary. Official notes identify later Rule 4-1.15 amendments.

Currency note

This opinion was issued in 1999, before Missouri’s 2007 revisions to the Rules of Professional Conduct. Later amendments or opinions may have changed the analysis. Treat this page as historical context and verify current rules before relying on it. The official Rule 4-1.9 and 4-1.10 reference notes identify July 1, 2007 amendments.

Common questions

Q: Could the lawyer follow the client’s direction to ignore the arrangement?

A: No. The opinion rejected that because the lawyer had participated in it.

Q: What if the client and doctor did not agree promptly?

A: The opinion said the lawyer would need to interplead the funds after a reasonable time.

Background and rules framework

Official reference notes say the opinion relied on Rule 4-1.15 before its 2013 and 2016 amendments.

Citations and references

Missouri Rules of Professional Conduct:

• Rule 4-1.15

See also

• Missouri Informal Op. 20000023: Interpleader Fees

Source

• Landing page: https://mo-legal-ethics.org/informal-opinion/990150/

• Rule revision reference: Missouri Informal Opinion 20030007

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Reference Note: Effective July 1, 2016, subdivision 4–1.15(f) of Rule 4 was repealed and a new subdivision 4–1.15(f) adopted in lieu thereof.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(e).

QUESTION: Attorney´s client was involved in an automobile accident and was treated by a doctor. The doctor required the client to sign forms attempting to create a lien. Attorney and client both signed the forms, because the doctor would not send the client records without having the forms signed first. The insurance carrier made a small offer which the client would like to accept, but there would not be sufficient funds to pay the doctor´s bill. Must Attorney honor the doctor´s lien if the client directs Attorney to disregard it?

ANSWER: In light of the fact that Attorney participated in the arrangements with the doctor, Attorney may not disregard those arrangements, even if Attorney´s client directs Attorney to disregard them. When the settlement funds are received, Attorney must keep them in Attorney´s trust account until Attorney´s client and the doctor have reached an agreement regarding disbursement. Attorney may assist Attorney´s client in those efforts. If they don´t reach an agreement within a reasonable period of time, it will be necessary for Attorney to interplead the funds.