[CLC-Discussion] Dispostion of Funds Held In Trust Account

[Charles B. Hernicz, Esq]

Thanks Arnie; that was the same conclusion I had reached, and the feedback
from the ethics hotline confirmed that would be an appropriate course of
action.  Stuart Sakwa also recommended that I ask about transferring the
funds to an interest-bearing account.  Since that issue turns on whether the
funds are "nominal or short term," and "whether a client's or third person's
funds are nominal or short term shall rest in the sound judgment of the
lawyer or law firm," with the aide of the ethics hotline, I have determined,
in my sound and reasonable judgment, that these funds are neither short nor
nominal and should be transferred to an interest-bearing account.

 

Thanks for the advice and feedback!

 

Chuck

 

Charles B. Hernicz, Esq.
Board Certified in Construction Law by The Florida Bar           
Hernicz Legal Services, P.L.
15854 Bent Creek Road 
Wellington, FL 33414 
Telephone: (561) 753-7511 
Facsimile: (561) 753-7082 
Chernicz at HerniczLegal.com

 

 

From: Arnold D. Tritt, Jr. [mailto:Arnold.Tritt at atritt.com] 
Sent: Thursday, September 26, 2013 3:21 PM
To: CHernicz at herniczlegal.com; clc-discussion at lists.flabarrpptl.org
Subject: RE: [CLC-Discussion] Dispostion of Funds Held In Trust Account

 

First suggestion is to call The Florida Bar's ethics hotline for guidance.
Second suggestion is to hold money because now you have a big retainer.  All
the best!!  Arnie.

 

From: clc-discussion-bounces at lists.flabarrpptl.org
[mailto:clc-discussion-bounces at lists.flabarrpptl.org] On Behalf Of Charles
B. Hernicz, Esq
Sent: Thursday, September 26, 2013 3:18 PM
To: clc-discussion at lists.flabarrpptl.org
Subject: [CLC-Discussion] Dispostion of Funds Held In Trust Account

 

Need some help on what to do with about $50k being held in my trust account.
My client is an engineer who acted as a special inspector on a project.
Before the work was completed, the owner replaced my client with another
engineer while owing my client somewhat over $50k.  I recorded a timely lien
for the balance owed.  After some wrangling, the owner sent me a check for
the balance to hold in trust pending my client's filing of special inspector
reports and certification of work done before the replacement engineer came
on.  To skip to the good part, the owner now can't get the permit closed out
and won't allow me to release the money to my client-holding it hostage to
coerce some certification my client believes violates professional engineer
rules.  I am preparing a lien foreclosure/breach of contract action, but
what happens to the money?  Initially I intended to include an interpleader
count in the complaint, but in an interpleader, my firm is the plaintiff
asking for interpleader of the funds, not my engineer client. Should I just
keep the funds in trust and plead the facts in the complaint, or file an
interpleader naming my client and the owner and then file an answer for my
client agreeing to the interpleader and cross-claiming for lien foreclosure
and breach of contract?

 

Chuck

 

Charles B. Hernicz, Esq.
Board Certified in Construction Law by The Florida Bar           
Hernicz Legal Services, P.L.
15854 Bent Creek Road 
Wellington, FL 33414 
Telephone: (561) 753-7511 
Facsimile: (561) 753-7082 
Chernicz at HerniczLegal.com

 

 

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