Arizona Lawyer Serves Two Years Probation for Improperly Managing Client Trust Account

In In re White-Steiner, No. 06-0796 (2008), the Arizona Supreme Court suspended a lawyer for two years for improperly dealing with client trust account and failing to supervise those responsible for maintaining the firm’s trust accounts. The client trust account had been overdrawn by $44.27

The Arizona Supreme Court affirmed the Hearing Officer’s conclusion that she acted with gross negligence and should have known that she was dealing improperly with client property which was in violation of Arizona’s Ethics Rules 1.15(a) and Arizona Supreme Court Rules 43 and 44.

It was found that White-Steiner improperly dealt with client funds and improperly managed her client trust account and she failed to make reasonable efforts to make sure that the firm had in place effective measures that gave reasonable assurance that all lawyers in the firm conformed to the Rules of Professional Conduct. Also, that all non-lawyers assistants’ conduct was compatible with White-Steiner’s professional obligations.

This case teaches the importance of the duty a lawyer has under Arizona’s Ethics Rule 1.15(a) that states “Funds shall be kept in a separate account maintained within the state where the lawyer’s office is situated… Complete records of such account funds and other property shall be kept by the lawyer.” Rule 43 states “Funds belonging in whole or in part to a client or third person in connection with a representation shall be kept separate and apart from the lawyer’s personal and business account.