Opinion ID: 1662210
Heading Depth: 1
Heading Rank: 4

Heading: Specification 1(b): Failure to Account to Client for Proceeds of Settlement

Text: The evidence is convincing that, after a day of trial in federal court, Thomas agreed with Edwins that his claim should be settled for $9,000. The evidence had not proved as strong a case as hoped. At this time, Thomas knew without dispute that from these proceeds he would have to pay Edwins a fee of at least $3,000, and also that, deducting previous advances made to him, he would receive no more than $3,000 net. Tr. 39-40, hearing of July 17. At the time, Thomas was not dissatisfied. However, when he and his wife appeared at Edwins' office a few days later to complete the settlement, the account of advances and expenses showed that he was entitled to receive a net rounded off at $2,500. He was not satisfied with this as the balance due him. Edwins himself was not in the office at the time. Edwins' partner, however, offered to withhold the disbursement until Edwins returned. Nevertheless, Thomas accepted the check for $2,500 as representing the net due him. Thomas's wife claims that, at the time, she requested an itemized account; but the preponderance of the evidence is otherwise. We may here say that the undisputed proof shows that no money due to Thomas was withheld from him by Edwins. Under cross-examination, he admitted receiving all sums shown on Edwins' books as advances made to him or for his account. Nevertheless, Edwins' carelessness in accounting to his client for the proceeds of the settlement should be reprimanded. Thomas did not, in fact, receive an accounting until the disciplinary hearing below. If an itemized statement had been furnished the client at the time of the settlement, his client's dissatisfaction and his unfounded suspicion that he had not received all amounts due him might have been avoided. An attorney's conduct should avoid even the appearance of impropriety.