For more information about the Client Protection Fund, please contact:

To download the Declaration of Trust and Claim for Relief, click here.

To download the Client Protection Fund 2007 Annual Report, click here.
  
Fee Disputes
If you have a dispute with a lawyer regarding the fees that you were charged, please click here for more information regarding the Fee Arbitration Program.

Frequently Asked Questions - click on a question to jump to the answer.
What is the Client Protection Fund and how is it funded?
Who administers the Fund?
Who is eligible to receive money from the Fund?
Who is not eligible to receive money from the Fund?
What types of losses are compensable?
What types of losses are not compensable?
Is there a time limit for filing a claim?
What happens after I file my claim?
How long will it take to process my claim?
May I file charges with any other entities?
Other contact information that may be helpful

What is the Client Protection Fund and how is it funded?
The Client Protection Fund is a trust that exists as a separate entity from the State Bar of Arizona.  The CPF Board of Trustees receives, holds, manages, and disburses money from the Fund.  The Fund is a charitable organization and is not funded by taxpayer dollars.  Each lawyer licensed to practice law in Arizona contributes a yearly assessment to the Fund.  That money is invested, which allows the Fund to pay more claims.  The Trustees can pay up to $100,000 to one claimant, and up to $200,000 in claims against one lawyer.  Effective June 1, 2009, the amount that can be paid in claims against one lawyer will be increased to $250,000.

Who administers the Fund?
The Fund is administered by the Client Protection Fund Board of Trustees.  There are five Trustees—four lawyers and one layperson—who are appointed by the State Bar of Arizona Board of Governors.  The Trustees are volunteers who serve without compensation.  The Trustees may serve two five-year terms.  All lawyer Trustees must have practiced law in Arizona for at least ten years.  In addition, staff from the State Bar of Arizona assist the Trustees in the administration of claims.
The Trustees evaluate claims, determine if they are eligible for payment, and compensate eligible claimants.  The Trustees invest Fund money in accordance with the Board’s investment policies.  Each year an annual report is prepared and presented to the Supreme Court of Arizona and to the Board of Governors.  This report is also available for viewing by the public on the State Bar Web site.

Who is eligible to receive money from the Fund?

• People who have had a lawyer-client relationship with a lawyer
• People who have had a fiduciary relationship with a lawyer that is customary and related to the practice of law, such as an administrator, personal representative, executor, trustee, guardian, or conservator

Who is not eligible to receive money from the Fund?

• The present or former spouse of the lawyer
• The child, parent, grandchild, grandparent, or sibling of the lawyer, whether by blood or marriage
• Partners, associates, co-shareholders, or employees of the lawyer
• Any surety or bonding agency
• Any business entity controlled by the lawyer
• Any governmental entity or agency
• Medical providers or other third parties with claims against the lawyer
• Any business entity, unless the Trustees invoke their sole and absolute discretion.  The Trustees may approve payment of a claim that has been filed by a small, family–owned and operated business.
• Large companies and corporations are not considered eligible claimants.

What types of losses are compensable?
Losses caused by the “dishonest conduct” of the lawyer, which include:

• Wrongful acts in the nature of theft or embezzlement of money
• The wrongful taking or conversion of money, property or other things of value
• Refusal to refund unearned fees received in advance where the lawyer performed no services or such an insignificant portion of the services that the refusal to refund the unearned fees constitutes a wrongful taking or conversion of money
• A lawyer’s act of intentional dishonest or deceitful conduct that proximately leads to the loss of money or property

What types of losses are not compensable?

• Claims based upon negligence, incompetence, or malpractice by a lawyer
• Claims based upon disputes as to attorney’s fees charged when the lawyer performed more than an insignificant amount of work
• Money lost by a claimant that was given to a lawyer for investment or any other purpose that did not arise from the lawyer-client relationship
• Claims requesting compensation for interest, legal fees paid to other lawyers, damages, or other expenses
• Claims where the lawyer was not a member in good standing with the State Bar at the time of the dishonest conduct, i.e., the lawyer had been disciplined for more than six months.

Is there a time limit for filing a claim?
There is a five-year statute of limitations, which means that a claimant must file the claim no more than three years from the time the claimant knew, or should have known, of the dishonest conduct.  The Trustees, in their sole discretion, may consider claims filed after the statute of limitations as having expired.

What happens after I file my claim?
The CPF Administrator will review your claim.  If additional information is needed, he or she will write to you asking for specific information.  When all of the necessary documentation is submitted, the Administrator will determine whether or not the claim is eligible for consideration, using the criteria listed under the previous topics.

1. If the CPF Administrator determines that the claim is not eligible for consideration, the claimant will receive a Notice of Insufficiency advising the claimant why the claim does not meet the standards for consideration.  The claimant is given 30 days to request reconsideration of the Notice of Insufficiency.  If the claimant submits a Request for Reconsideration, it will be forwarded to the Board of Trustees for consideration at its next meeting.  If the Board denies the claim at the meeting, the claimant will be notified in writing.  There is no further appeal process.
2. If the CPF Administrator determines that the claim is eligible for consideration, the claim will be deemed materially complete and will be sent to the Board of Trustees.  A copy of the Claim for Relief, and a Notice of Claim will be sent to the lawyer, who is allowed 30 days to respond.  If a response is received, it will be sent to the Trustees and to the claimant.  The claim will then be placed on the agenda for the next meeting.
3. If the Trustees vote to pay a claim and the lawyer has been in one of the following categories for a period of six months, a check will be issued and sent to the claimant. The lawyer must have been: (1) deceased, (2) disbarred, (3) transferred to disability inactive status, (4) suspended by the Supreme Court, (5) placed on interim suspension by the Supreme Court, or (6) convicted of a felony arising out of the facts that gave rise to the claim. If a claim has been approved, but is not yet ripe for payment, the claim will be held until such time as one of the triggering events listed above occurs.
4. If the Trustees deny the claim, the claimant will be notified why the claim was denied and afforded an opportunity to request reconsideration.  The Request for Reconsideration will be sent to the Trustees for evaluation and they will make their final decision at the next regularly scheduled meeting.  The claimant will then be notified, in writing, as to whether or not the Trustees have approved or denied the claim.

How long will it take to process my claim?
The processing of a claim may take six months to a year due to the eligibility requirements, and depending upon the lawyer’s status.

May I file charges with any other entities?

• The Client Protection Fund is separate from the State Bar of Arizona.  Claimants should call the Attorney Consumer Assistance Program (“A/CAP”) at 602-340-7280 to obtain more information regarding filing disciplinary complaints against lawyers.
• Persons involved in a fee dispute with a lawyer may contact the Fee Arbitration Program at 602-340-7379
• Claimants may also contact the Attorney General’s Office at 602-542-5025 in Phoenix, or 520-628-6504 in Tucson.
• Claimants may have other options, and may wish to consult with a lawyer to determine what course of action to take.

Other contact information that may be helpful

• To find a lawyer and determine whether he/she is in good standing, go to www.azbar.org. Click on “Find a Lawyer,” in the upper right-hand corner, and insert the name of the lawyer
• Maricopa County Superior Court Self-Service Center 602-506-7353