Providing an Accounting of Disbursements to Medical Lienholders in Personal Injury Cases
Adopted: January 16, 2004
Opinion rules that an attorney may provide an accounting of disbursements of sums recovered for a personal injury claimant as required by N.C.G.S. § 44-50.1.
Inquiry:
Attorney A represents Client in a personal injury matter. Several medical providers treated Client and now have valid medical liens against any funds awarded. N.C.G.S. § 44-50.1 provides that medical lienholders may request an accounting of disbursements made on behalf of a lawyer's client when certain conditions are met. May Attorney A provide an accounting of the disbursements from Client's settlement proceeds to the medical providers?
Opinion:
N.C.G.S. § 44-50.1 imposes a duty, in limited situations, to account for the manner in which settlement proceeds are disbursed. Attorney A does not violate the Revised Rules of Professional Conduct by complying with the mandates of the statute. Rule 1.6(b)(1).