First Page
142
Date Created
1-4-2022
Publisher
St. Mary's University School of Law
Editor
Bailey Rider
Last Page
178
Abstract
Clients will often use a retainer to secure an attorney’s representation. But clients in economic distress may have creditors that are eager to access the client’s funds in the attorney’s hands. Attorneys, clients, courts, and regulators have struggled to understand who has the best claim to such retainer funds. In this Article, we attempt to untangle the most common areas of confusion. We conclude that Article 9 of the Uniform Commercial Code (UCC) offers strong protection for an attorney’s interest in client retainers through security interests, even though some courts have misapplied the UCC in this context. Further, we recommend that regulatory bodies create educational programs to help attorneys and courts understand how to apply Article 9 to security interest and also recommend that attorneys help clients understand the benefits and drawbacks of granting a security interest in retainer funds.
Recommended Citation
Cassandra B. Robertson & Jesse T. Wynn,
Untangling Attorney Retainers from Creditor Claims,
12
St. Mary's J. on Legal Malpractice & Ethics
142
(2022).
Available at:
https://commons.stmarytx.edu/lmej/vol12/iss1/4
Included in
Legal Ethics and Professional Responsibility Commons, Legal Profession Commons, Legal Remedies Commons