Certified Legal Professional (CLP) Practice Exam

What should an attorney do with a retainer if the client insists on a full refund after preliminary work?

1. A) Keep the entire retainer for the work done

2. B) Transfer some funds to personal accounts

3. C) Leave disputed fees in the trust account and return the rest

4. D) Provide half of the retainer and deny the rest

The correct answer is: C) Leave disputed fees in the trust account and return the rest

The appropriate course of action for an attorney in this scenario is to leave the disputed fees in the trust account and return the rest. This approach aligns with the ethical and legal obligations of attorneys regarding client funds. When a retainer is received, it is typically deposited into a trust account, as it is considered client property until the attorney earns it by providing services. If a client requests a full refund after preliminary work has been done, the attorney must assess what portion of the retainer corresponds to the work that has been completed. It is essential to keep those earned fees in the trust account until there is a clear resolution regarding the client's request for a refund. By leaving the disputed fees in the trust account, the attorney protects both the client’s interests and their own. This practice maintains transparency and fidelity to the trust relationship between the attorney and the client. Meanwhile, returning the remaining funds demonstrates a willingness to accommodate the client's request when possible, fostering goodwill and adhering to ethical standards. The other options do not align with proper handling of client funds and can lead to ethical breaches or misappropriation of funds. Keeping the entire retainer ignores the client's request and could be seen as unjust enrichment. Transferring funds to personal accounts is a clear violation of