Legal Question in Legal Ethics in California
My question is is the law firm that settled a claim against a brother and sister which the brother never received the settlement amount because the check was issued to my wife's sisters business where an account was opened or money was electronically transferred from my dad's account from day one from when the check was deposited $160k. Wouldn't the law firm be responsible and is there a statute of limitations for this type of case if there is one?
1 Answer from Attorneys
The law firm is obligated to send settlement funds to the client(s) as directed by the client(s) as long as the directions are not illegal (e.g. money laundering) and reasonable. They have no responsibility for what happens to the settlement payment after that. If they failed to follow proper instructions, that would be malpractice which has a one-year statute of limitations.
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