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What to Do When an Attorney Mishandles Client Funds in NC

North Carolina legal clients should be able to trust their cases and their money to their attorneys. Unfortunately, a negligent lawyer can fumble a case and misuse a client’s funds. It’s a double whammy because the client loses a potential settlement and their own money set aside for the case.

Fortunately, clients have a way to fight back. They can fire their lawyers and file lawsuits against the law firm.

A legal malpractice case can help you recover any money you entrusted to a lawyer and restore any gains lost if your case was mishandled. But these cases can be complex, and lawyers can fight hard to avoid accepting blame.

Melrose Law files lawsuits against North Carolina lawyers acting in bad faith. We stand with victims and aggressively seek compensation for any lost funds and the loss of value in a client’s claim. Contact us for a free, no-obligation case review to go over your options.

What Steps Can I Take If a Lawyer Won’t Return My Money?

There are a few things you can try before filing a lawsuit against a lawyer over lost funds. If cooler heads can prevail, you may save yourself a legal headache. You could also be able to see your money returned and keep more of it by avoiding court and legal fees.

Work the Matter Out With Your Lawyer: Let cooler heads prevail. You should try to work the matter out with your attorney (or former lawyer) first. Give your lawyer a chance to return what is owed. If things can be settled without additional lawyers and a hearing, you may be able to get your funds back and keep more of your returned money.

Talk to a Public Liaison with the NC State Bar: Before filing a grievance with the NC State Bar, you can utilize the attorney-client assistance program. You can inform public liaisons about your issues, and these liaisons can contact the lawyer for you in some cases. The liaison should try to find a solution to the issue without taking sides.

Filing a Grievance with the NC State Bar: If prior steps don’t lead to your money being returned, you can file an official grievance. Investigators with the NC State Bar would fully investigate your allegations. A negligent lawyer or one who had committed a financial crime could be ordered to return the money. The lawyer might also face public reprimands, a suspension, or a permanent disbarment.

Seeking Your Money from the Client Security Fund:  The NC State Bar Client Security Fund was established to reimburse North Carolina clients who have suffered financial loss as a result of the dishonest conduct of lawyers engaged in a private practice. It’s meant for clients who have exhausted all other options to get their money returned. The money would need to have been misappropriated or embezzled before the victim could hope to draw from the fund.

File a Lawsuit Against the Lawyer: It’s not surprising that most people would feel intimidated when filing a lawsuit against a lawyer. Fortunately, they don’t have to go it alone. The best protection against a dishonest or incompetent lawyer is finding an attorney whom victims can trust and who will stand up to other law firms when they make mistakes and bad decisions.

Melrose Law’s North Carolina Legal Malpractice Lawyers are ready to help. We can investigate what happened in the courtroom and during case preparation and make sure an attorney doesn’t get to slip away from accountability. We want to make sure every cent not used for your case or mishandled is returned to your pocket.

Why Would a Lawyer Ask Me for Money?

The act of seeking money from a client isn’t unusual and shouldn’t always cause alarm. There are many reasons a client may be asked to provide funds.

These are just a few of the reasons a lawyer may have requested money from you:

  • A Retainer Fee. This is money to reserve the lawyer’s time and attention for any legal issues you have. If you didn’t get the time and focus you paid for, that money should be returned. Especially if your case was lost due to the lack of attentiveness from a lawyer.
  • Money to Cover Hourly Legal Fees. For some cases, lawyers receive a certain amount of pay for each hour they work. Clients have a right to see a list of the work and tasks that were completed, and an accounting of all hours. You should also receive that money back if a lawyer misrepresents the hours worked.
  • Money for the Investigative Costs and Court Fees. When lawyers aren’t working on a contingency fee, meaning the client pays nothing unless the case is won, they may seek funds to cover investigative costs. That might include the cost of document gathering. It might be used to pay the fee for accident reconstruction teams or for expert witnesses. Court fees could come out of the money a client provides.
  • Client Trust Account (CTA). The lawyer places the client’s money in a separate account. This money is supposed to be separated from the law firm’s own funds. The capital may be used for a retainer fee or could be used on case expenses. Find out what to do if your lawyer has mishandled a trust account on our informational page.

It can be hard for you to keep track of money after it leaves your hands. But, generally, you should raise questions if you notice your lawyer pulling money from your account for unauthorized reasons. If some of your money ends up in the lawyer’s account, that may be a bad sign. If your case has been settled, but you don’t receive your share of the settlement, speak to Melrose Law. Seek answers if unused money isn’t returned to you after your case is resolved.

A legal expert, such as another lawyer, can help you determine if your money has been misappropriated or simply stolen. A free case consultation with Melrose Law is a good start to finding answers and being reunited with your funds.

How Can a North Carolina Legal Malpractice Lawyer Help Me Recover My Money?

Your Melrose Law attorney would be ready to do a deep dive into the money that was collected from you and how it was used.

These are a few other ways an attorney helps you uncover what has happened to your money:

  • Investigates your case and the money tied up in it. In some situations, an audit may be performed to figure out where funds ended up.
  • Hires expert witnesses in the legal field, perhaps to testify to the normal steps and care another attorney would have taken with a client’s money.
  • Suing After a Lost Claim. If the mishandling of funds led to your case being lost, Melrose Law would show how much an unsuccessful case likely cost you. We would then act to recover that money from the negligent lawyer.
  • Represent You in Court. We stand before judges and juries to make sure they know how much your wasted time and money have cost you and your loved ones. We seek the maximum in compensation for your ordeal, and sometimes we can get more than the money you lost.
  • You Don’t Pay Us Unless We Win for You. Paying a second lawyer probably seems like an impossible ask after you’ve already paid one lawyer and lost so much. That’s why Melrose Law works on a contingency basis. It means we don’t get paid for our work unless we win your case. Then our fee comes out of the money a lawyer must pay back, plus any penalties the lawyer must include.

Contact a North Carolina Legal Malpractice Lawyer

Reach out to us for a free consultation. It’s a confidential opportunity to speak to a real North Carolina Legal Malpractice Lawyer. A lawyer can help you determine whether you should file a lawsuit against a former attorney over funds that are unaccounted for. There’s no obligation, and this meeting is completely confidential. We represent clients in the Asheville area and across North Carolina.

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$3.025 Million settlement by Mark R. Melrose and co-counsel in a medical malpractice case for 40 year old man who suffered a devastating stroke after his surgeon failed to diagnose the cause of his bowel infarction. The doctor failed to read the echocardiogram which had clear evidence of a blood clot. This clot then broke apart and caused the stroke.

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