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Ark. Bar Assoc., in the Matter of Iolta

Supreme Court of Arkansas
May 13, 1985
286 Ark. 64 (Ark. 1985)

Opinion

No. 84-90

Opinion delivered May 13, 1985

ATTORNEY CLIENT — INTEREST ON LAWYERS' TRUST ACCOUNTS — MODIFICATION OF NOTICE PROVISION. — The requirement that all attorneys or law firms participating in the IOLTA Program send notice to all of their clients, informing them of their participation, and providing information concerning the new procedures and the uses of trust earnings, is modified to provide that on the same day as a client's money is first deposited in the trust account of a participating attorney or law firm, the attorney or law firm shall mail a notice to that client in the form prescribed, providing information concerning the procedures and uses of trust earnings, but that subsequent deposits of money of a client who has once been notified may be made without repeating the notice.

Petition to Amend Opinion; petition granted in part.

William R. Wilson. Jr., for Arkansas Bar Association, petitioner.


On September 17, 1984, we granted a petition by the Arkansas Bar Association requesting that we permit establishment of a program for collecting interest on monies deposited in lawyers' trust accounts and for use of the interest earned for certain purposes having to do with furthering legal education and the sound administration of justice in Arkansas. In the Matter of the Arkansas Bar Association Petition to Authorize a Program Governing Interest on Lawyers' Trust Accounts, 283 Ark. 252, 675 S.W.2d 355 (1984).

Our opinion contained, in part, this language:

4. Client consent is not an element of the IOLTA program. However, attorneys and law firms participating in the program shall inform their clients of their participation by sending to each client a notice, in the form set out below, providing information concerning the new procedures and the uses of trust earnings.

The petitioner has pointed out this language could be interpreted as requiring notice be sent to all clients of any participating lawyer, whether the client had money in the lawyer's trust fund or not. We agree that would be a useless act in many instances.

The petitioner suggests our opinion be changed to permit a lawyer to give notice to his clients by posting it in the lawyer's office.

Our opinion is hereby modified by replacing the language quoted above with the following:

4. Client consent is not an element of the IOLTA program. However, on the same day as a client's money is first deposited in a participating attorney or law firm's trust account, the attorney or law firm shall mail a notice to that client in the form set out below, providing information concerning the procedures and the uses of trust earnings. Subsequent deposits of money of a client who has once been notified may be made without repeating the notice.


Summaries of

Ark. Bar Assoc., in the Matter of Iolta

Supreme Court of Arkansas
May 13, 1985
286 Ark. 64 (Ark. 1985)
Case details for

Ark. Bar Assoc., in the Matter of Iolta

Case Details

Full title:ARKANSAS BAR ASSOCIATION, IN THE MATTER OF INTEREST ON LAWYERS' TRUST…

Court:Supreme Court of Arkansas

Date published: May 13, 1985

Citations

286 Ark. 64 (Ark. 1985)
689 S.W.2d 352

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