Supreme Court of Missouri
en banc
November 19, 2019
Effective November 19, 2019
Effective November 19, 2019
In re:
(1) Repeal of subdivision (h) of subdivision 4-1.15, entitled "Trust Accounts and Property of Others," of Rule 4, entitled "Rules of Professional Conduct," and in lieu thereof adoption of a new subdivision (h) and a new paragraph [21] of the Comment of subdivision 4-1.15, entitled "Trust Accounts and Property of Others."
(2) Repeal of subdivision (b) of subdivision 5.225, entitled "Conditional Discipline," and the heading title of subdivision 5.25, entitled "Voluntary Surrender of License," of Rule 5, entitled "Complaints and Proceedings Thereon," and in lieu thereof adoption of a new subdivision (b) of subdivision 5.225, entitled "Conditional Discipline," and a new heading title of subdivision 5.25, entitled "Voluntary Surrender – Consent to Disbarment or Other Process."
ORDER
1. It is ordered that effective November 19, 2019, subdivision (h) of subdivision 4-1.15 of Rule 4 be and the same is hereby repealed and a new subdivision (h) and a new paragraph [21] of the Comment of subdivision 4-1.15 adopted in lieu thereof to read as follows:
4-1.15 TRUST ACCOUNTS AND PROPERTY OF OTHERS
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(h) Every lawyer shall certify in connection with this Court's annual enrollment statement the financial institutions in which the lawyer has one or more IOLTA, non-IOLTA, or exempt trust accounts and that the lawyer or the law firm with which the lawyer is associated either maintains an IOLTA, non-IOLTA, or exempt trust account with an eligible and approved financial institution or is not required to have a trust account because the:
(1) lawyer is not engaged in the practice of law;
(2) nature of the lawyer's or law firm's practice is such that the lawyer or law firm does not hold client or third-party funds;
(3) lawyer is primarily engaged in the practice of law in another jurisdiction and not regularly engaged in the practice of law in this state; or
(4) lawyer is associated in a law firm with at least one lawyer who is admitted to practice and maintains an office in a jurisdiction other than the state of Missouri and the lawyer or law firm maintains a pooled trust account for the deposit of funds of clients or third persons in a financial institution located in such other jurisdiction and any interest or dividends, net of any service charges and fees, from the account is being remitted to the client or third person who owns the funds or to a nonprofit organization or government agency pursuant to the laws or rules governing lawyer conduct of the jurisdiction in which the financial institution is located.
(2) nature of the lawyer's or law firm's practice is such that the lawyer or law firm does not hold client or third-party funds;
(3) lawyer is primarily engaged in the practice of law in another jurisdiction and not regularly engaged in the practice of law in this state; or
(4) lawyer is associated in a law firm with at least one lawyer who is admitted to practice and maintains an office in a jurisdiction other than the state of Missouri and the lawyer or law firm maintains a pooled trust account for the deposit of funds of clients or third persons in a financial institution located in such other jurisdiction and any interest or dividends, net of any service charges and fees, from the account is being remitted to the client or third person who owns the funds or to a nonprofit organization or government agency pursuant to the laws or rules governing lawyer conduct of the jurisdiction in which the financial institution is located.
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COMMENT
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[21] Rule 4-1.15(h) requires that lawyers certify the existence of one or more IOLTA, non-IOLTA, or exempt trust accounts in an eligible and approved financial institution or certify the circumstances under which they are not required to maintain such an account. See Rule 4-1.145 (defining IOLTA, non-IOLTA, and exempt trust accounts and eligible and approved financial institutions). Circumstances requiring a trust account include, but are not limited to, a lawyer's or law firm's practice where the lawyer or law firm (a) receives or holds client funds, including fees paid in advance, except for advanced flat fees that do not exceed $2,000 that may be deposited into another account in accordance with Rule 4-1.15(c), (b) receives or holds third-party funds, (c) receives settlement funds or awards for the benefit of another, (d) receives real estate conveyance funds, or (e) receives funds to be used for court costs or client expenses. See Comment [20] (advanced flat fees).
2. It is ordered effective November 19, 2019, subdivision (b) of subdivision 5.225 and the heading title of subdivision 5.25 of Rule 5 be and the same are hereby repealed and a new subdivision (b) of subdivision 5.225 and new title heading of subdivision 5.25 adopted in lieu thereof to read as follows:
5.225 CONDITIONAL DISCIPLINE
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(b) Conditions.
(1) The nature and circumstances of the lawyer's misconduct and the history, character, and health status of the lawyer shall be taken into consideration when reprimanding a lawyer with requirements or when placing a lawyer on probation. A standard requirement or condition in all such cases shall be that the lawyer engage in no further violations of the Rules of Professional Conduct (Rule 4), Rule 6, or Rule 15.
(2) The order reprimanding a lawyer with requirements shall specify the requirements the lawyer must meet and the period of time within which the lawyer must meet the requirements.
(3) The order placing a lawyer on probation shall specify the conditions of probation. A standard condition of probation shall be that the lawyer may be required to submit to one or more examinations of practices and records related to compliance with Rules 4-1.145, 4-1.15, and 4-1.155 governing safekeeping property, IOLTA, and trust accounts.
(4) Probation shall be imposed for a specified period of time. Probation may be imposed in conjunction with a stayed suspension.
(5) The period of probation shall not exceed five years unless an extension is granted upon motion by either party. A motion for an extension must be filed prior to the conclusion of the probation period.
(6) An order of probation is an order of discipline.
(2) The order reprimanding a lawyer with requirements shall specify the requirements the lawyer must meet and the period of time within which the lawyer must meet the requirements.
(3) The order placing a lawyer on probation shall specify the conditions of probation. A standard condition of probation shall be that the lawyer may be required to submit to one or more examinations of practices and records related to compliance with Rules 4-1.145, 4-1.15, and 4-1.155 governing safekeeping property, IOLTA, and trust accounts.
(4) Probation shall be imposed for a specified period of time. Probation may be imposed in conjunction with a stayed suspension.
(5) The period of probation shall not exceed five years unless an extension is granted upon motion by either party. A motion for an extension must be filed prior to the conclusion of the probation period.
(6) An order of probation is an order of discipline.
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5.25 VOLUNTARY SURRENDER – CONSENT TO DISBARMENT OR OTHER PROCESS
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3. It is ordered that notice of this order be published in the Journal of The Missouri Bar.
4. It is ordered that this order be published in the South Western Reporter.
Day – to – Day
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GEORGE W. DRAPER III
Chief Justice
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GEORGE W. DRAPER III
Chief Justice