What to Do if Your Attorney Refuses to Release Court-Ordered Funds?

Question from sam, What to Do if Your Attorney Refuses to Release Court-Ordered Funds?

Answer from AI:

Attorney‑client trust duties

When an attorney receives money that belongs to a client—or to more than one client, as in a community‑home sale—the funds must be placed in a trust (or escrow) account that is separate from the lawyer’s own money. This requirement is set out in the ABA Model Rules of Professional Conduct Rule 1.15 and has been adopted in virtually every state. The rule obligates the lawyer to:

• Keep the trust account accurately documented.
• Disburse client funds only in accordance with the client’s instructions or a valid court order.
• Promptly return any money that the lawyer is not entitled to keep.

Court authority to enforce its orders

A family‑court judgment that directs the attorney to pay $25,000 to each party is a binding order. If the lawyer refuses to follow it, the court can:

1. Hold the attorney in contempt – failure to obey a court order is contempt, which may bring fines, daily penalties, or even brief incarceration.
2. Issue an order to show cause – the lawyer must appear and explain why the funds have not been released.
3. Direct the clerk or a court‑appointed receiver to withdraw the money directly from the trust account and deposit it as ordered.

State bar disciplinary boards also treat refusal to obey a court order as a serious ethical breach that can lead to suspension or disbarment.

Practical steps for the parties

1. File a motion to enforce – ask the judge to issue a formal enforcement order and to impose sanctions on the non‑complying attorney.
2. Request a writ of attachment or a receiver – the court can appoint a neutral third party to take the money out of the trust and deliver it to the joint checking account.
3. Notify the state bar – a complaint to the relevant bar association can trigger an ethics investigation, which adds pressure on the lawyer to comply.
4. Consider changing counsel – if the attorney’s conduct is obstructive or unethical, the parties may seek new representation and ask the court to order the current lawyer to turn over the trust balance to the new counsel.

Potential consequences for the attorney

• Contempt sanctions – monetary penalties, daily accruals, or brief jail time.
• Disciplinary action – the bar may impose reprimand, suspension, or disbarment for violating Rule 1.15 and for willful disobedience of a court order.
• Civil liability – the parties could sue for damages caused by the delay, especially if the refusal results in financial loss (e.g., missed mortgage payments).

When to seek personalized legal help

The steps above involve filing motions, possibly obtaining a receiver, and navigating bar‑discipline procedures. Because the exact process varies by state and the stakes are high, the parties should consult a family‑law attorney who can draft the necessary pleadings, represent them at any contempt hearing, and coordinate with the court to protect the trust funds.

For a detailed look at the ethical rules governing trust accounts, see the ABA Model Rules of Professional Conduct – Rule 1.15. Many state bar websites also publish their own versions of these rules and provide guidance on handling client funds.

These mechanisms collectively ensure that a court‑ordered distribution of trust proceeds is enforceable, and that an attorney who refuses to comply faces both judicial and professional consequences.