Disbarment for Attorney Retaining Client Funds
An attorney who retained funds collected on behalf of a client without notification and was convicted of the offense of breach of trust in the course of service has been disbarred.
Summary
It was determined that the respondent attorney retained the funds collected on behalf of the client without notifying or refunding them to the client. The attorney, who was convicted of the offense of 'breach of trust in the course of service' due to the said act and whose sentence became final, was decided to be disbarred pursuant to Article 5 of the Attorneyship Law. The TBB Disciplinary Board ruled that the disciplinary offense was established and upheld the decision of the Bar Disciplinary Board.
The Facts
It was alleged that the attorney failed to notify the client of the damages and attorney's fees collected out of court from the defendant on behalf of the client, executed a release without the client's knowledge, and retained the funds.
Assessment
The respondent attorney's failure to notify the client without delay despite collecting the client's funds and retaining them is contrary to professional rules. Transparency and notification obligations required for the exercise of the right of retention were not fulfilled. Due to the existence of a finalized conviction against the attorney and the nature of the crime constituting an 'offense involving moral turpitude' within the scope of Article 5/a of the Attorneyship Law, the sanction of disbarment was applied out of legal necessity.
Rules Violated
- Attorneys' Act (No. 1136) art. 34
- Attorneys' Act (No. 1136) art. 134
- Attorneys' Act (No. 1136) art. 166
- TBB Professional Rules art. 3
- TBB Professional Rules art. 4
- TBB Professional Rules art. 43
- TBB Professional Rules art. 45
Key Terms
- Hapis hakkı
- An attorney's lawful right of retention established over funds collected from a client, up to the amount of their claim, for outstanding attorney's fees and expenses due from the client.
- Tevdi mahalli
- A court-designated location where funds can be legally deposited in cases where the creditor cannot be reached or where there is a dispute regarding the claim.
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Outcome
It was decided to dismiss the appeal, uphold the disbarment decision, and suspend the attorney from practice as a precautionary measure.