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Wisconsin Lawyer
Vol. 74, No. 5, May 2001

Legal News & Trends

Trust account certification requirements clarified

Since the 1998 amendments to SCR 20:1.15, safekeeping property, lawyers have questioned the types of accounts they must certify on annual State Bar dues statements. In an April 11 order, issued in response to a petition filed by the State Bar and the Office of Lawyer Regulation (OLR), the supreme court clarified SCR 20:1.15(a) and (g) by stating, "A lawyer must certify all trust accounts and safe deposit boxes in which the lawyer deposits clients' funds or property held in connection with a representation or held in a fiduciary capacity that directly arises in the course of or as a result of a lawyer-client relationship."

The OLR interprets this statement to require certification of the following types of accounts on the FY 02 dues statement, to be mailed in June:

  • all accounts containing client property;
  • all accounts containing property of third persons held in connection with a representation, for example, escrow funds or real estate settlement funds; and
  • all other fiduciary accounts directly arising out of a lawyer-client relationship, for example, probate estate funds or property held as personal representative in cases where the attorney's designation arises out of a lawyer-client relationship.

The OLR also interprets this clarification to not require certification of fiduciary accounts that arise from:

  • a family relationship, for example, guardian of a Uniform Gift to Minor's Account on behalf of the attorney's child or personal representative of a parent's estate; and
  • service to a civic organization, where the attorney is a member and where no lawyer-client relationship exists with the organization.

The court's recent clarification only addresses the certification on the annual dues statement. OLR will continue to interpret the other trust account rules, including the overdraft notification requirements, as it has since the 1998 amendments took effect. (See, "Trust Account Reporting," by Dean R. Dietrich, June 2000 Wisconsin Lawyer) Direct questions concerning the certification requirement to the OLR at (414) 227-4492. A copy of the order is available at http://www.wisbar.org/wislawmag/2001/04/scto.html#4.

Attorneys could lose licenses for nonpayment of child support

On April 10, the supreme court issued its ruling on the adoption of a procedure to refuse to grant or to suspend the licenses of attorneys who are delinquent in payment of support or in noncompliance with a support or paternity subpoena or warrant.

The order is in response to a 1997 federal law that addressed enforcement of child and family support and other payments related to the support of a child or former spouse. The order provides for the denial, nonrenewal, restriction, and suspension of attorneys' licenses who are delinquent in making court-ordered support payments or fail to comply with a subpoena or warrant relating to paternity or support proceedings.

Court clarifies fax filing procedures

The supreme court amended Wis. Stat. § 801.16 (2), filing of papers by facsimile transmission, to clarify that papers filed by facsimile transmission constitute official record and to provide the maximum length of a facsimile transmission to be 15 pages, unless exception is granted.

Effective July 1, 2001, a court may adopt a local rule, if it is approved by the chief judge, that permits filing papers with the clerk of circuit court by facsimile transmission to a plain-paper facsimile machine at a telephone number designated by the court.

If the facsimile transmission exceeds 15 pages or is filed in the absence of a local rule, the party or attorney shall certify that the assigned judge or court commissioner has approved the facsimile transmission.

If no local rule has been adopted, the assigned judge or court commissioner may permit a party or attorney in a specific matter to file papers with the clerk of circuit court by facsimile transmission.

Wisconsin Lawyer