My client told me to forward escrow funds to a specific address, but now family members say they're entitled to the money and that my client has permanently left the country. Can I release the funds to the family, or do I need to do something else first?

Plain-English summary

An attorney asked the panel about the proper handling of a client's money held in an escrow account. The client had originally instructed the attorney to forward any balance of the escrow funds to a specified address. Before the attorney disbursed any funds, he was contacted by different members of the client's family, who told him, first, that they were entitled to the funds, and second, that the client had permanently left the country.

The panel quoted DR 9-102(B)(4), which requires a lawyer to promptly pay or deliver to the client, as requested by the client, funds in the lawyer's possession that the client is entitled to receive. The panel took the position that a client's money may be released to someone other than the client only pursuant to the client's own authorization or a court order. It further advised that before seeking a court order, the attorney must demonstrate that he has not merely accepted the family's information about the client's wishes, but has instead conducted a diligent search for the client himself.

Currency note

This opinion was issued in 1988, before the Rhode Island Supreme Court's adoption of the 2007 revisions to the Rules of Professional Conduct, and it applies the ABA Model Code of Professional Responsibility's Disciplinary Rules then in effect. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule, deadline, or requirement mentioned here.

Common questions

Q: Family members are telling me my missing client wants the escrow funds sent to them. Can I rely on that and disburse the money?

A: No, according to this opinion. Client funds may be released only to the client, on the client's own authorization, or under a court order, not on the say-so of family members alone.

Q: What do I need to show before going to court to resolve who gets the funds?

A: The opinion requires the attorney to demonstrate a diligent search for the client himself, rather than merely accepting information about the client's wishes from potentially adverse sources such as family members claiming entitlement to the funds.

Background and rules framework

The opinion applies DR 9-102(B)(4) of the ABA Model Code of Professional Responsibility, then in force in Rhode Island, which requires a lawyer to promptly deliver to the client funds the client is entitled to receive, and addresses how that duty operates when the client cannot be reached and third parties claim entitlement to the funds.

Citations and references

Rules of Professional Conduct:

• RI DR 9-102(B)(4) (prompt delivery to the client of funds the client is entitled to receive)

Statutes:

• None cited.

Cases:

• None cited.

Other opinions cited:

• None cited.

See also

No sibling opinions yet indexed.

Source

• Landing page: https://www.courts.ri.gov/attorney-resources/Pages/Ethics-Advisory-Panel-default.aspx
• Original PDF: https://www.courts.ri.gov/Opinions/EAP%2088-12.pdf

Original opinion text

Best-effort transcription from a scanned PDF. Minor errors may remain; the linked PDF is authoritative.

DIGEST OF ETHICS ADVISORY PANEL
Opinion #88-12, Request #14
ISSUED MAY 13, 1988

An attorney seeks panel advice as to the proper handling of a client's money which is now held in an escrow account. The client originally instructed the attorney to forward any balance of the escrow funds to a specified address. Before the attorney disbursed any funds, the attorney was contacted by different members of the client's family, who advised the attorney, first, that they were entitled to the funds and, second, that the client had permanently left the country.

Disciplinary Rule 9-102(B)(4) provides that:

A lawyer shall . . . . (4) promptly pay or deliver to the client as requested by a client the funds . . . in the possession of the lawyer which the client is entitled to receive.

The Panel takes the position that a client's money may only be released to one other than a client pursuant to the client's authorization or a court order. Further, the Panel advises the attorney that before seeking a court order the attorney must demonstrate that he has not merely accepted information concerning his client's wishes from potentially adverse sources but, instead, has conducted a diligent search for the client himself.

Ethics Advisory Panel advice is protective in nature. There is no requirement that an attorney abide by a Panel opinion, but if he or she does, he or she is fully protected from any charge of impropriety.