Addendum to Formal Opinion 94

• Jurisdiction: Colorado,United States
• Citation: Vol. 36 No. 1 Pg. 11
• Pages: 11
• Publication year: 2007

36 Colo.Law. 11 Colorado Lawyer 2007.

2007, January, Pg. 11. Addendum to Formal Opinion 94

The Colorado Lawyer
January 2007
Vol. 36, No. 1 [Page 11]

In and Around the Bar
CBA Ethics Committee
Addendum to Formal Opinion 94

CBA Ethics Committee Addendum to Formal Opinion 94:

Ethical Duties Relating to a Client's Property
Held by a Lawyer in Which a Third Party Has an Interest(fn1)
Addendum Adopted March 19, 2006

A question may arise as to whether the lawyer may distribute the disputed property to the client where the statute of limitations has run. The Committee believes that it is proper for the lawyer to distribute the property if it is clear that the statute has run. However, if there is a question as to whether the statute of limitations has run, then the lawyer has an obligation to notify the third party and ask the third party whether he or she is making a claim to the property giving the third party a reasonable time to state his or her position. If the third party makes a claim, then the lawyer should proceed in accordance with Section 3 above, which deals with distribution where there is a dispute as to the validity of the claim. If the lawyer does not receive a meaningful response from the third party, and the lawyer believes the statute of limitations has run, the lawyer may distribute the property to the client. In accordance with Section 4 above, the lawyer should be aware that if the lawyer has induced a third party to believe that he or she will be paid or that his or her interest will be protected whether or not a statute of limitations has run, and the lawyer fails to act in accordance therewith, the lawyer may be subject to discipline

Note

1. Colorado Bar Association (CBA) Ethics Committee Opinion No. 94 was adopted Nov. 20, 1993. It can be found at...