Legal Definitions - attorney's lien

An attorney's lien is a legal right that allows a lawyer to retain possession of a client's property, documents, or funds until the client has fully paid for the legal services provided. This right acts as a security measure, ensuring that attorneys are compensated for their professional work and expenses. It essentially gives the attorney a claim over certain client assets that are in their possession, preventing the client from retrieving them until the outstanding legal bill is settled.

• Example 1: Business Documents

  Imagine a small business owner hires an attorney to draft a complex partnership agreement and review several critical business contracts. The attorney spends significant time and effort completing these tasks. However, when the final invoice is presented, the client disputes the charges and refuses to pay the full amount. In this situation, the attorney could assert an attorney's lien on the completed partnership agreement and the reviewed contracts. This means the attorney would legally retain possession of these crucial business documents, refusing to release them to the client until the outstanding legal fees are paid in full.

• Example 2: Personal Legal Files

  Consider an individual who engages a lawyer to represent them in a challenging divorce case. Throughout the proceedings, the client provides the attorney with numerous personal financial records, property deeds, and other sensitive documents necessary for the case. After the divorce is finalized, the client fails to pay the remaining balance of the legal fees as agreed. The attorney could exercise an attorney's lien on the client's physical case file, including the original financial records and property documents. The attorney would be legally entitled to hold onto these materials until the client settles the outstanding legal bill, providing an incentive for the client to fulfill their payment obligations.

• Example 3: Settlement Funds

  A client successfully sues a negligent party in a personal injury claim, and the court awards a substantial monetary settlement. The settlement check is made out to the client and sent to their attorney's office. The attorney and client had a contingency fee agreement, meaning the attorney's fee is a percentage of the recovery, plus reimbursement for litigation expenses. Before disbursing the funds to the client, the attorney can assert an attorney's lien on the settlement money. This allows the attorney to legally deduct their agreed-upon percentage fee and any outstanding expenses directly from the settlement amount. Only after these legitimate claims are satisfied would the remaining balance be released to the client, demonstrating the attorney's right to secure payment from funds they possess.