On Thursday, February 27, 2025, the Director of the Minnesota Office of Lawyers Professional Responsibility filed a petition with the state Supreme Court seeking to appoint a trustee to manage the client files and funds of deceased attorney Karl A. Oliver. Oliver, a bankruptcy lawyer, passed away on October 2, 2024, leaving behind unresolved client matters and financial assets requiring oversight.
The case is entitled “In the Matter of Karl A. Oliver.”
With no succession plan in place, Oliver’s sudden passing left approximately 25 active bankruptcy cases without an attorney of record. His former operations manager and paralegal, identified only as R.H., stepped in to assist despite no longer being employed by Oliver. R.H., who had worked with him for 11 years before the pandemic slowed his business, took on the task of notifying clients and the bankruptcy court of his death.
The bankruptcy court intervened by assigning other attorneys to take over the pending cases, ensuring clients received continued representation. R.H. also reached out directly to clients, returning files to those who requested them. However, three boxes of inactive client files remain in R.H.’s possession, stored at her home for safekeeping.
While clearing out Oliver’s leased office, R.H. discovered $7,500 in cash. She also found approximately $15,000 in a PayPal account, which she had access to and was another common way Oliver collected fees. After reviewing records from the past two to three years, R.H. compiled a spreadsheet linking payments to specific bankruptcy matters. Her research suggests that some or all of the combined $22,500 may represent unearned fees, as the related work was either incomplete or never started due to Oliver’s death. Uncertain about how to proceed, R.H., who is not a lawyer, has been holding these funds securely.
Additionally, R.H. reported that Oliver maintained at least one, and possibly up to four or five, accounts with Wells Fargo Bank, N.A. While the balances in these accounts are believed to be small, they may contain client funds. According to the Interest on Lawyers Trust Accounts program, Oliver did not have a trust account, raising further questions about how client money was managed.
The petition, filed by Director Susan M. Humiston, requests authority to take possession of Oliver’s client files, the $22,500 in cash and PayPal funds, and any relevant bank account records. It also seeks permission to assess the condition of the files, return them to clients where possible, and confidentially destroy older files closed for seven or more years, barring any valuable original documents. For files with such documents, the Director aims to retain them for five years, notify clients when feasible, and destroy the remaining file contents.
The Director further requests the ability to freeze Oliver’s bank accounts if necessary, determine ownership of the funds, and distribute them appropriately. Other proposed actions include hiring clerical help, copying files for potential client claims, and invoking immunity for acts performed as trustee under Rule 27 of the Rules on Lawyers Professional Responsibility.
According to the filing, Mr. Oliver acquired his law license in Minnesota in 1996.
A copy of the original filing can be found here.
