Michigan attorney running for state House seat admits to not paying full settlements to his clients

Kara Berg, The Detroit News on Oct 27, 2026

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DETROIT — A Dearborn attorney running for a state House seat testified that he failed his clients when he did not pay them the full amount of their settlements they were entitled to.

Jalal Abdallah, a Democrat, testified most of the afternoon Tuesday at an Attorney Discipline Board disciplinary hearing in Detroit, where a panel of three volunteer attorneys heard evidence to determine if Abdallah misappropriated hundreds of thousands of dollars of his clients' settlement money.

"We failed him. We failed our client," Abdallah said, speaking of a man who received a $250,000 settlement and was owed $147,000 of that. Abdallah initially only paid the man $20,000 and did not send him the rest until after the Attorney Grievance Commission subpoenaed Abdallah, seeking information about 30 clients who had not been fully paid.

The money Abdallah's clients were owed instead ended up in Abdallah's business account, an action he blamed on his brother, who worked as his office manager until 2025. Abdallah testified that his brother handled the distributions of the settlements from the Interest on Lawyers' Trust Account (IOLTA) set up to hold settlement money.

"I was totally responsible, and it was wrong. I’m not running away from what happened," Abdallah said. "It was my responsibility to look at the IOLTA account and my responsibility only ... I just stupidly and negligently trusted my brother and abdicated my responsibilities."

Abdallah said once he discovered that 30 clients were still owed settlement money after the Attorney Grievance Commission subpoenaed Abdallah, he knew he had to pay them back.

Cora Morgan, senior associate counsel for the Attorney Grievance Commission, asked Abdallah if he ever would have discovered the unpaid settlements had she not sought information about it. The Attorney Grievance Commission's investigation began after Abdallah's trust account was overdrawn. One of his clients also submitted a complaint to the commission.

"I want to say yes he would have been (paid), but I can't 100% tell you yes," Abdallah said. "I have no excuses. We only paid him after you subpoenaed us. I don’t deny it."

Abdallah's attorney, Phil Thomas, declined to comment, but said on Monday that every client whose name is referenced in the formal complaint has been repaid all the money they are entitled to, and if they owed Abdallah anything for their case, the remaining costs have been waived.

If the panel finds Abdallah committed misconduct, the panel will hold a hearing to determine discipline. Discipline could include probation, a reprimand, a suspension or disbarment.

Abdallah faces Republican Hassan Nehme in the general election Nov. 2 for Michigan's 15th House District seat, which covers Dearborn Heights and west Dearborn.

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