Attorney's Trust Fund Account

rapidreport said:

What is the name of your state? OR

Our attorney received a partial settlement check from our Insurance Company several months ago. This check was intended to start construction on our fire damaged home. Unfortunately, our mortgage was sold to a different company, while the check was issued in the names of our attorney, the original lender, and us. The new lender will not endorse the check unless it has their name on it. As such, they also want to be in charge of delving it out once it has been released. I understand that this is fairly standard, so far. However, my question pertains to the check itself, and what has been done with it in the interim.

Is it (the check) not supposed to be placed in an interest bearing, separate account? It seams this check, among other things, was originally placed in the attorney's account and cashed, by mistake by his bank. How is this a mistake ? Certainly not the fact that your mortgage was sold.


While he states that the money is still there and he only realized this recently, I think that this could be a major foul up. I mean, it has been 15 months since the fire, and our home is sitting the same way it was the day after the blaze. Our attorney has stated the money ($120,000) is in his account and was accidentally deposited. In addition, he claims that it was placed despite lacking the proper endorsements, that those were overlooked by his bank. As well, he has stated that while he could release the money today, he feels that it would be unethical and that the money should be returned, and a new check issued with the proper parties listed on it.

Here is another question, too. This same attorney took our case on a contingency basis. However, every time a check has been issued by our insurance company, he takes his cut first. I would also like to add that originally, when we hired him, we forgot to sign any paperwork accepting his representation. His assistant later faxed, or mailed the contract to us. At which time we misplaced it too, and never signed it. We only recently discovered the original contract, unsigned and intact. Apparently, his office has never followed up on this minor detail. I was wondering what the implications of this oversight could be, as well. Also, the legal definition of “Contingency” would be great. Any information would be helpful. Thank you.What is the name of your state?

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Shay-Pari'e said:

You need a different lawyer, and I will tell you why.

Nothing that you posted makes any sense.

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rapidreport said:

What is the name of your state? OR

Our attorney received a partial settlement check from our Insurance Company several months ago. This check was intended to start construction on our fire damaged home. Unfortunately, our mortgage was sold to a different company, while the check was issued in the names of our attorney, the original lender, and us. The new lender will not endorse the check unless it has their name on it. As such, they also want to be in charge of delving it out once it has been released. I understand that this is fairly standard, so far. However, my question pertains to the check itself, and what has been done with it in the interim.

Is it (the check) not supposed to be placed in an interest bearing, separate account?

Yep. It should be placed in the attorney's IOLTA (Interest Only Lawyers Trust Account).And the lawyer can take his cut and transfer your cut to you.

It seams this check, among other things, was originally placed in the attorney's account and cashed, by mistake by his bank.

How did it get to the bank? It could have accidentally been placed by the bank in the wrong account. It does happen. And then the attorney normally informs the client and has the money put in the proper account.

While he states that the money is still there and he only realized this recently, I think that this could be a major foul up.

I mean, it has been 15 months since the fire, and our home is sitting the same way it was the day after the blaze.


Court cases take time. You are LUCKY that it is only been 15 months. It could have been a lot longer than that before you got any money.

Our attorney has stated the money ($120,000) is in his account and was accidentally deposited. In addition, he claims that it was placed despite lacking the proper endorsements, that those were overlooked by his bank. As well, he has stated that while he could release the money today, he feels that it would be unethical and that the money should be returned, and a new check issued with the proper parties listed on it.

He has a point. It should. Because the new lender is entitled to determine what happens to the money. Why? Because you have a mortgage on the house. READ YOUR MORTGAGE DOCUMENTS. The mortgage holder has a RIGHT to make sure that the property securing the mortgage is kept in proper condition in order for them to get their money out of it. The house is not YOURS. You gave a security interest in it to the bank who gave you the money when you signed the mortgage and promisorry note. Read them. Yes the mortgage was sold HOWEVER the same terms apply with the new lender.

Here is another question, too. This same attorney took our case on a contingency basis. However, every time a check has been issued by our insurance company, he takes his cut first.

So? He is allowed. He earned that money. How many hours do you think he has spent on the case? Ask him to send you a list of the work performed. You can ask for that and get it but he is entitled to be paid. Unless you get money, he hasn't earned squat. And most attorneys charge in excess of $200 an hour. So figure that out.


I would also like to add that originally, when we hired him, we forgot to sign any paperwork accepting his representation. His assistant later faxed, or mailed the contract to us. At which time we misplaced it too, and never signed it. We only recently discovered the original contract, unsigned and intact. Apparently, his office has never followed up on this minor detail. I was wondering what the implications of this oversight could be, as well. Also, the legal definition of “Contingency” would be great. Any information would be helpful. Thank you.What is the name of your state?

Click to expand...