Melrose Law stands with victims whose lawyers have abused trust accounts and their clients’ money. When a client’s money is unaccounted for, including money in a trust account, lawyers are 100% responsible for the missing funds and any damage it does to the client’s case.
Melrose Law files lawsuits against North Carolina lawyers acting in bad faith. We aggressively seek compensation for any lost funds and the loss of value in a client’s claim. Contact us for a free case review to go over your options. It’s a confidential, no-obligation path to finding out how to hold your former attorney fully liable for mishandling your case.
What Is a Client Trust Account?
When a lawyer represents a client, the lawyer sometimes keeps any money the client provides in a separate account from the law firm’s account. This is known as a Client Trust Account (CTA). The money must not be mixed with the lawyer’s personal or business accounts.
The money provided by the client may be part of a retainer to secure the lawyer’s services. It could be used for investigative and litigation costs. The account may be drawn upon to pay an accident reconstruction team or an expert witness. It may be used to pay court fees. The account may hold settlement money until it can be divided between the victim and the lawyer.
The money would normally stay in the account until the lawyer had earned it or it was needed for the case. What’s key is that this money is only withdrawn for the benefit of the client. The account and the money taken from it must be clearly documented and labeled.
The North Carolina Bar Association explains how trust accounts should be handled. Some accounts even gain interest for the client. Many lawyers forget that they must send clients an annual update on their trust account activity.
What Happened to the Money in My Trust Account at the Law Firm?
Mishandling or abusing a client’s trust account is considered legal malpractice and is illegal. Lawyers who steal from an account or misappropriate a client’s money can face criminal charges and lawsuits.
These careless or intentional actions can also serve to destroy a victim’s chances to win support in a personal injury case or a case involving fraud and other financial impropriety. Lawyers who cause clients to lose the support they desperately need should be fully liable for replacing that anticipated compensation.
These are just a few of the types of trust account cases Melrose Law can help clients win:
- The victim doesn’t receive settlement money held in the account
- Leftover funds not returned to a client after the case has been settled
- The client’s money ending up in the lawyer’s account
- A lawyer reaching into the client’s trust account for unauthorized reasons
- A client’s account ending up empty without explanation
There are signs that clients can watch out for when worried about trust account money held by a lawyer. If the lawyer can’t provide a detailed account of how the funds are being used, it’s a red flag. If there are duplicate or unexplained charges on an account statement, it may be time to speak to another lawyer. If the lawyer asks the client for more money without a proper explanation, there may be an issue.
When money is missing from the trust account without clear explanations, there may be grounds for a legal malpractice lawsuit.
Will Another Lawyer Represent Me If I Must Sue My Former Attorney for Legal Malpractice?
Most law firms will not sue other lawyers. But at Melrose Law, we side with victims. We understand that everyone makes mistakes, but that doesn’t mean lawyers shouldn’t be held accountable for errors or a lack of attention to detail.
Because even a small mistake can cost a client a chance to earn thousands of dollars in support. Victims may have been counting on settlement money to pay medical bills, replace lost income, or get justice for the death of a loved one. Victims may simply have wanted to avoid bankruptcy, but a lawyer’s misstep has now made that impossible.
We carry our own professional malpractice insurance. We explain to our clients that this insurance is really not for our protection, but rather for our clients to have a source of funds should we make a serious mistake and cause them harm. The insurance is for them to be made whole.
It’s something that all lawyers must have, and clients who are cheated out of competent representation should have access to. Facing off against a lawyer can be intimidating and complex. Thankfully, our North Carolina Trust Account Violation Lawyers are ready to step in and protect you and handle every aspect of your case.
How Much Can I Get When Suing My Lawyer for Legal Malpractice?
An accurate estimate of what you may win when suing your former attorney will be hard to determine right away. Your new lawyer will need to investigate your case and tally everything that’s been taken from you.
There are some factors that will play a bigger role than others in determining what you receive on a settlement check.
In some cases, your new attorney will need to gather evidence to prove how much more you could’ve won if a lawyer had used your funds correctly to improve your case.
These are just a few of the aspects of the case that will decide what you can demand from your former attorney:
- Totals on the money in a trust account that should have been returned.
- Totals on the money in a trust account that was taken out unlawfully.
- The difference between what you won in your legal claim compared to what you should have won had your case been handled correctly.
- The financial losses you may have suffered if your case was dismissed because of a lawyer acting in bad faith.
- Any interest you should have earned from your account money and any settlement money your lawyer failed to win.
- The expenses you’ve documented when having to hire another lawyer to repair the damage to you personally and your case.
- Support for the added emotional distress you’ve been put through on top of the trauma caused by the original claim you sought out a lawyer’s help for.
Fees For Legal Malpractice Cases
Reach out to us for a free consultation. It’s a confidential opportunity to speak to a real North Carolina Legal Malpractice Lawyer about whether you should file a lawsuit against a former attorney. There’s no obligation, and this meeting is completely confidential. We represent clients in the Asheville area and across North Carolina.
The good news is that you can afford a second lawyer, even if a previous lawyer has drained all of your savings. Melrose Law works on a contingency basis. This means that we don’t get paid unless we win compensation from your former lawyer. Then, you still don’t have to worry about finding money to pay an attorney’s fee. Our fee is paid out of the money the law firm’s malpractice insurance provider must hand over to you.
