QUESTION
can my attorney deduct legal fees from monies I put in their escrow acct to pay the plaintiff in a settlement? please read more
Asked on May 23rd, 2012 on General Practice - New York
More details to this question:
I hired an attorney and paid a retainer to represent me in negotiating a settlement with a plaintiff that filed an adversary proceeding against me in a chapter 7, we reached and signed an agreement to pay a 1/3 upon the judge signing off, a 1/3 in six months, and the final 1/3 in another six months. I was given a loan to pay the entire amount in full all at once. I made a check payable to my attorney in escrow, I noted in the memo section that the funds are to pay the plaintiff. The attorney now wants to deduct additional legal fees from that amount. Can they do this?
1 ANSWER
1 Award
No. If there is a fee dispute, an attorney must hold the funds in escrow, and does not have to give it back to you until a grievance is resolved. However, an attorney may not take the money, or pay it somewhere else. File an ethics grievance with the grievance committee in your county.
Answered on May 28th, 2012 at 10:01 AM