If a lawyer receives a settlement check for more than the agreed amount, what must the lawyer do?

Plain-English summary

A lawyer received a settlement release and a check for $5,000 when the agreed settlement was $4,000. The committee was of the opinion that the lawyer has an obligation to clarify with the adjuster whether the adjuster intended the case to be settled for $4,000 or $5,000. If the $5,000 payment was made in error, the committee was of the opinion that the lawyer must return the extra $1,000, and that in addition the lawyer should get the settlement agreement amended to reflect the actual settlement.

The committee did not cite a specific numbered Rule of Professional Conduct in this opinion.

Currency note

This opinion was issued in 1989, before the Washington State Bar Association's adoption of the 2006 revisions to the Washington 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 Treat this page as historical context, not current guidance.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: What should a lawyer do after getting a settlement check that is too large?

A: Under this 1989 opinion, clarify with the adjuster whether the larger figure was intended; if the overpayment was an error, return the excess.

Q: Is clarifying with the adjuster enough?

A: If the payment was made in error, the committee said the lawyer must also return the extra amount and should get the settlement agreement amended to reflect the actual settlement.

Q: Did the committee tie this to a specific rule?

A: No. The opinion states the obligations without citing a numbered Rule of Professional Conduct.

Background and rules framework

The committee addressed a lawyer's handling of a settlement payment that exceeded the agreed amount. Without citing a numbered rule, it concluded the lawyer must first clarify the adjuster's intent and, if the overpayment was an error, return the excess; the lawyer should also get the settlement agreement amended to reflect the actual settlement.

Citations and references

The opinion does not cite a numbered Rule of Professional Conduct.

See also

• WA Ethics Op. 1284: Returning a Former Client's Documents
• WA Ethics Op. 1287: Funds Held for a Doctor Suspected of Fraud

Source

• Landing page: https://ao.wsba.org/print.aspx?ID=366

Original opinion text

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

The Committee reviewed your inquiry concerning your receipt of a settlement release and a check in the amount of $5000.00, when the agreed settlement was $4,000.00. The Committee was of the opinion that you have an obligation to clarify with the adjuster whether the adjuster intended the case to be settled for $4,000.00 or $5,000.00. If the $5,000.00 payment was made in error, then the Committee was of the opinion that you must return the extra $1,000.00, and that, in addition, you should get the settlement agreement amended to reflect the actual settlement.