Can a Lawyer not Pay Liens for her Client?

A lawyer cannot guarantee payment of liens in a settlement. The client can, but not the lawyer. MO Informal Opinion
125 – violates ethics rule 4-1.8(e).

Illinois Advisory Opinion No. 06-01 agrees that Rule 1.8(d) bars personally
guaranteeing payment of a lien because it constitutes “the provision of financial assistance to his client.”

But it goes on to say that “under Rule 1.15(b), a lawyer representing
a plaintiff has an obligation to segregate the settlement funds over which a third party has a claim, to notify
persons who have an in interest in those funds (including lien/subrogation claimants) and then distribute the funds
owed to said persons.”

Failure to segregate the funds and then distribute them results in the lawyer being directly liable to the
third-party subrogation claimant. Western States Ins. Co. v. Olivero, 283 Ill.App. 3d 307, 670 N.E.2d 333, 218 Ill. Dec. 836
(3d Dist. 1996).

Gary Burger

Founder | Injury Attorney
Gary Burger has dedicated his career to standing up against bullies. The founder and principal attorney of Burger Law | St. Louis Personal Injury Lawyer has helped hundreds of Missouri and Illinois individuals and families recover th …
Years of experience: 30 years
Location: St. Louis, MO

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