IOLTA programs were established after much consideration and review to ensure adherence to the law. Only funds that cannot secure net interest income for the client should be placed in IOLTA accounts. Nonetheless, for nearly 15 years, IOLTA came under fire in states such as Massachusetts, Texas and Washington, where lawsuits claimed that IOLTA is unlawful. In each case, IOLTA was found to be a legally sound program.
Two of the IOLTA cases - in Washington and Texas - reached the United States Supreme Court. Through the wisdom of our courts, IOLTA was preserved and continues to strengthen the American justice system.
For more information about IOLTA litigation, please visit the American Bar Association Commission on IOLTA Web site at: http://www.americanbar.org/groups/interest_lawyers_trust_accounts/resources/iolta_litigation_summary.html.