Recently, I had a conversation with a lawyer who thought he had lost tangible personal property he was holding in an estate he was representing. The items were valuable to the heirs of the estate. For weeks, the lawyer had been under the growing anxiety that the property was lost or possibly stolen. Fortunately, after some thorough searching, the lawyer was able to locate the property. But the experience was a stark reminder of how critical it is for lawyers to safeguard not just client funds but also tangible client property.

Rule 1.15-2 of the North Carolina Rules of Professional Conduct imposes a strict duty on lawyers to safeguard both client funds and tangible property. While most lawyers are aware of the need to protect funds held in trust accounts, it is easy to overlook the importance of safeguarding tangible personal property, such as jewelry, artwork, documents, or even collectibles. Failing to properly manage and secure such property can lead to serious legal, ethical, and financial consequences.

Lawyers must keep client property separate from their own. This extends to tangible personal property, which must be stored in a safe, secure location. For instance, if you are holding a client’s jewelry, it should not be stored alongside your own belongings in your office. Consider using a safe deposit box, a fireproof vault, or other secure storage options to protect valuable items.

Lawyers are expected to take reasonable measures to ensure the security of tangible personal property. This can include physical security measures such as locks, alarms, and secure filing systems. Additionally, maintaining an inventory of the items held and regularly reviewing it can help prevent confusion and ensure accountability.

Clients have the right to request the return of their property at any time. When a client asks for the return of their items, you are obligated to return them promptly, without delay. Failure to do so can create significant ethical issues, not to mention strain client relationships.

In addition to recording an initial inventory of property you are holding, you should conduct periodic checks to ensure that property is still in your possession and in the same condition as when it was received. This can help avoid misunderstandings and ensure that the property remains safe.

As attorneys, we must be diligent custodians of client property. Rule 1.15 requires lawyers to safeguard and segregate tangible personal property, and failure to do so can lead to significant legal and ethical consequences. The recent experience of the lawyer facing a malpractice claim is a reminder of how quickly things can go wrong if we fail to take the necessary precautions. By following the guidelines set forth in Rule 1.15 and adopting best practices for safeguarding tangible property, lawyers can help ensure that they fulfill their professional duties and avoid unnecessary risks.