Client Protection Fund
The Fund's Mission
The Client Protection Fund ("Fund") was established by the
Supreme Court of Arizona in 1961. Its purpose is to promote public
confidence in the administration of justice, and to preserve the
integrity of the legal profession by reimbursing people who have
sustained losses caused by the dishonest conduct of lawyers
admitted and licensed to practice in Arizona.
To download the Fund's Claim for Relief form and
Declaration of Trust, click here.
To download the Fund's 2011 Annual Report, click here.
Frequently Asked Questions About the Fund
Click on a question to jump directly to the answer:
What are the basic requirements
for an eligible claim?
What if my attorney is deceased?
Who is not eligible to receive money from
the Fund?
What types of losses are not
reimbursable?
What information should I include
with my claim?
What happens after I file my
claim?
How long will it take to consider my
claim?
What is the Client Protection Fund and how is it
funded?
Who administers the Fund?
May I file charges with any other
entities?
Other contact information that may be
helpful
What are
the basic requirements for an eligible claim?
The basic requirements that must be met in
order for a claim to be eligible for consideration by the Fund
include (but may not be limited to):
- The lawyer must be admitted and licensed to practice in Arizona
(can be admitted and licensed in other states, but must also be an
Arizona lawyer).
- The claimant must have had a lawyer-client relationship with
the lawyer, or a fiduciary relationship with the
lawyer that is related to the practice of law, such as an
administrator, personal representative, executor, trustee,
guardian, or conservator.
- The loss must have been caused by the "dishonest conduct" of
the lawyer. For the purpose of the Fund, "dishonest conduct" means:
- Wrongful acts in the nature of theft or embezzlement of money,
or the wrongful taking or conversion of money, property or other
things of value;
- Failure to refund unearned fees received in advance when
no work was performed; or,
- A lawyer's act of intentional dishonesty or deceit
that proximately leads to the loss of money or property.
- The lawyer mustmeet one of the following
criteria before a claim is considered eligible for consideration:
- Suspended for longer than six months by
Supreme Court order;
- Disbarred by Supreme Court order;
- Placed on Interim Suspension by Supreme Court
order;
- Transferred to disability inactive
status;
- Deceased; or,
- Convicted of a felony arising out of the facts
of the claim.
(NOTE: If the lawyer has received no
disciplinary sanction, or has received less than a six month and
one day suspension or disbarment, any claim filed against the
lawyer will not be eligible for consideration.)
- The claim must be filed within five (5) years from the time the
claimant knew, or should have known, of the lawyer's dishonest
conduct.
What if my attorney is
deceased?
Claimants must attempt to exhaust all possible remedies against
any reasonable source of possible recovery from the attorney prior
to filing a Client Protection Fund claim. If your attorney is
deceased, it may be possible for you to make a claim against the
attorney's estate.
Please contact the Clerk of the Superior Court in your county to
obtain the forms and information you need to make a "Claim Against
An Estate" (
click here for a list of AZ courts). Not making a claim against
the attorney's estate will not automatically disqualify your Client
Protection Fund claim, however, the Trustees of the Fund prefer
claimants attempt to recover their loss from any other reasonable
sources before
filing a claim with the Fund.
If you have attempted to file a claim against the
attorney's estate and were not successful, please include copies of
that documentation when you submit your Client Protection Fund
claim.
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 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).
- 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.
What types
of losses are NOT reimbursable?
- Claims based upon negligence, incompetence, or
malpractice by a lawyer.
- Claims based upon disputes about fees charged in cases
where the lawyer did perform some work for the claimant.
- Money given to a lawyer for investment or any other purpose
that did not arise from a 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 of Arizona at the time of the dishonest conduct.
What information should I include
with my claim?
- Any supporting documentation that you feel will prove what you
allege in your claim. Include copies of proof of
payment to the lawyer and/or that the lawyer received money on your
behalf (such as: front and back of canceled checks, receipts,
billing statements, fee agreements, copies of settlement
information, etc.). This information is required
and claims without this information may be denied for lack of
proof.*
*NOTE: The attorney
discipline process is separate from the Client
Protection Fund. If you have already filed a State Bar
complaint against the attorney, you may have to submit copies of
documents with this claim that you have already submitted to the
State Bar with your discipline complaint. Your assistance is
appreciated.
- If you hired the lawyer to represent you in a specific court
case, please include the case number(s) and the name of the court
where it was filed.
- If you have received an Order of Restitution from the State Bar
of Arizona or the Arizona Supreme Court in a discipline matter
against an attorney, that Order is binding only on
that particular attorney. When reviewing your claim,
the Board of Trustees will take into consideration the fact that
the attorney was ordered to pay you restitution, however, pursuant
to Rule 12(C) of the Fund's Declaration of Trust, they are
not bound by restitution orders when deciding a
claim.
What
happens after I file my claim?
The Fund Administrator will review your claim. If
additional information is needed, the Administrator will request
specific information from you in writing. When all of the
necessary documentation is submitted, the Administrator will
determine if the claim is eligible for consideration, using the criteria listed above.
- If the Administrator determines that the claim is not eligible
for consideration, the claimant will receive written notice
advising why the claim does not meet the standards for
consideration. The claimant is given 30 days to request
reconsideration of this denial. If the claimant submits a
Request for Reconsideration, the claim will be forwarded to the
Board of Trustees for consideration at their next quarterly
meeting. If the Trustees deny the claim, the claimant will be
notified in writing. This decision is final and there is no
further appeal process.
- If the Administrator determines that the claim is eligible for
consideration, the claim will be sent to the Board of
Trustees. A copy of the claim will also be sent to the
lawyer, who is allowed 30 days to respond. If a response is
received from the lawyer, copies of the response will be sent to
the Trustees and the claimant. The claim will then be
scheduled for consideration at the next quarterly meeting.
- If the Trustees approve the claim
and the lawyer has been in one of the
following categories for a period of six months: (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 of the claim, then a check will be issued and sent to the
claimant.
- If a claim has been approved, but is not yet eligible for
payment, payment will not be made until six months following one of
the above triggering events.
- If the Trustees deny the claim, the claimant will be notified
in writing as to why the claim was denied and afforded an
opportunity to request reconsideration. If the claimant
submits a Request for Reconsideration, it will be forwarded to the
Trustees for consideration at their next quarterly meeting.
If the Trustees deny the request, the claimant will be notified in
writing. This decision is final and there is no further
appeal process.
How long will it take to
consider my claim?
The consideration of a claim may take six months to a year
due to the claim eligibility requirements and the investigative
process.
What is the Client
Protection Fund and how is it funded?
The Fund is a trust that exists as a separate entity from the
State Bar of Arizona. The Fund's 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 on one individual claim, and up to
$250,000 total in claims against one lawyer.
Who
administers the Fund?
The Fund is administered by a 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 assists the Trustees in the
administration of claims. The Trustees evaluate claims,
determine if they are eligible for payment, and compensate eligible
claimants.
May I file
charges with any other entities?
- The Client Protection Fund is a separate entity from the State
Bar of Arizona. Claimants should contact 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 or she is in good
standing, go to www.azbar.org and click on "Find a
Lawyer."
- Maricopa County Superior Court Self-Service Center
602.506.7353.
IMPORTANT NOTICE:
The State Bar of Arizona has no legal responsibility for the
acts of individual lawyers. Payments from the Client
Protection Fund shall be made in the sole discretion of the
Trustees administering the Fund and not as a matter of
right.
The lawyer must meet the above-listed criteria before a claim
is eligible for consideration by the Client Protection Fund.
For more information about the Client Protection Fund,
please contact:
Karen Weigand, Client Protection Fund Administrator
karen.weigand@staff.azbar.org
602.340.7286
Toll-free 866.482.9227