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.
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