Legal Practitioners’ Accounts

- PART I: Foundation -

Introduction

Every legal practitioner in Nigeria is under obligation to open, maintain, and operate certain bank accounts. These accounts are regulated by:

• The Legal Practitioners Act (LPA);
• The Legal Practitioners Accounts Rules (LPAR) 1964.

Legal practitioners must also keep certain books of account and records of their financial transactions.

3 Mandatory Accounts

- PART II: Client Account - Rule 3 LPAR -

Mandatory Opening

Every legal practitioner who holds or receives money on behalf of a client is mandated to open a client’s account, or as many as he desires.

3 Requirements of the Client Account

1. May be a current OR deposit account;
2. Must be in the name of the legal practitioner;
3. Must contain the word “client” in its title.

What is “Client’s Money”? - Rule 2 LPAR

Any money held or received by a legal practitioner on account of a person for whom he is acting - whether as a legal practitioner, agent, bailee, stakeholder, or in any other capacity - in connection with his practice.

2 Exclusions

1. Money held on account of trustees of a trust where the legal practitioner is a solicitor-trustee;
2. Money to which the only person entitled is the legal practitioner himself (or one or more partners in a firm).

Money That MAY Be Paid Into Client Account - Rule 4

1. Trust money;
2. Money belonging to the legal practitioner necessary for opening or maintaining the account;
3. Money meant to replace any sum drawn by mistake or accident from the client’s account;
4. Any cheque or draft received by the legal practitioner which contains client money + trust money which the legal practitioner did NOT split.