My client's collision insurer paid for car repairs but never contacted me about reimbursement or subrogation. Now I've received the settlement. Do I owe the insurer anything before I release the funds to my client?

Plain-English summary

An attorney asked the panel whether he had any duty to an insurance company with a contractual relationship with his client. His client had been in a motor vehicle accident that damaged the client's car and caused personal injuries. The attorney had just received a settlement in satisfaction of the client's claim against the defendant. The client's collision insurance carrier had originally paid for repairs to the car, but had never contacted the attorney for reimbursement or asserted any subrogation rights.

The panel held that the attorney had no duty to the collision insurance carrier with respect to disbursement of the settlement funds, and that it was proper to release the funds directly to the client. The panel added that the attorney may wish to explain to the client that the collision insurance carrier might later seek reimbursement of some or all of its expenses, and that in that event the client could deal directly with the insurer.

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. 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 Treat this page as historical context, not current guidance.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: My client's collision insurer paid for repairs but never asked me about reimbursement or subrogation. Do I have to hold back any of the settlement for the insurer?

A: No, according to this opinion. The panel held the attorney has no duty to the carrier in that situation and it is proper to release the settlement funds directly to the client.

Q: Should I say anything to my client about the insurer before releasing the funds?

A: The panel suggested the attorney "may wish to explain to the client that his collision insurance carrier may be looking for reimbursement of some or all of its expenses," and that the client could deal directly with the insurer if that happens.

Background and rules framework

The opinion does not cite a specific Disciplinary Rule or Ethical Consideration by number; its holding rests on the absence of any contact or asserted subrogation claim from the collision insurer at the time the attorney disbursed the settlement funds to the client.

Citations and references

Rules of Professional Conduct:

• None cited by number.

Statutes:

• None cited.

Cases:

• None cited.

Other opinions cited:

• None cited.

See also

• RI EAP Opinion 88-10: Dual Representation of Client and Medical Insurer on Subrogation
• RI EAP Opinion 88-11: Dual Representation of Client and Medical Insurer on Subrogation
• RI EAP Opinion 88-12: Escrow Funds Disbursement Where Client Is Unreachable and Family Claims an Interest

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%2088-25.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 #88-25, Request #33

An attorney seeks Panel advice as to whether he has any duty to an insurance company that has a contractual relationship with his client.

The attorney advises the Panel that his client was involved in a motor vehicle accident which damaged the client's car and caused the client personal injuries. The attorney further advises the Panel that he has just received a sum of money as a settlement in satisfaction of his client's claim against the defendant. His client's collision insurance carrier originally paid for repairs to the client's car but has never contacted the attorney for reimbursement, nor asserted any subrogation rights.

The Panel takes the position that the attorney has no duty to the collision insurance carrier with regard to the disbursement of the settlement funds. It is proper for the attorney to release the funds directly to the client. The Panel adds, however, that the attorney may wish to explain to the client that his collision insurance carrier may be looking for reimbursement of some or all of its expenses, and that if that is the case the client may deal directly with his insurer.

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.