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The Lawyers' Fund for Client ProtectionWhat is the Lawyers' Fund for Client Protection?The Lawyers' Fund for Client Protection is established by the Washington State Bar Association and the Washington Supreme Court. Its purpose is to make gifts to persons in compensation in those rare cases where clients suffer a direct financial loss caused by the dishonest conduct of a lawyer in connection with the practice of law. Who finances the fund?No tax dollars are used. All of the active lawyers in Washington state make a contribution to the fund every year. Who is eligible for gifts from the fund?If you have lost money or property because a Washington lawyer was dishonest or mishandled your money, you can apply for a gift from the Lawyers' Fund for Client Protection. The fund is a source of last resort. Before the Lawyers' Fund for Client Protection Committee can approve a gift, you must have tried all other means of getting your money back. This may include getting money from: (1) a bank that honored a forged endorsement; What losses are not eligible for a gift from the fund?The Lawyers' Fund for Client Protection cannot compensate you for losses caused by a lawyer's malpractice, or fee disputes between you and your lawyer. If you and your lawyer have a fee dispute, the WSBA has two voluntary programs that may help you: fee arbitration and mediation. The fund can compensate you only for the amount the lawyer took or mishandled. The fund cannot compensate you for damages such as lost interest, attorney fees you paid in attempting to recover the lost money, or other consequential or punitive damages. How do I apply for a gift from the fund?You need to do two things: submit an application to the fund and file a disciplinary grievance with the WSBA (unless the lawyer has already been disbarred or is deceased). To get a fund application and grievance form, contact the WSBA by mail, phone, fax or e-mail at:
Forms may also be downloaded from this Web site. Complete the forms as directed, and attach copies of relevant documents including any written fee agreement, receipts and canceled checks that show payment to the lawyer. Return the form and documents to the WSBA. Do I need a lawyer to apply for a gift from the fund?No, you do not need a lawyer to apply for a gift or to file a disciplinary grievance. A lawyer may help you with your application, but cannot charge you for helping you. The only exception to this is if the lawyer's fee is approved by the Fund Trustees, who are the Board of Governors of the Washington State Bar Association. What happens after I file my application?First, we must determine if your loss was caused by the lawyer's dishonest conduct. In most cases, a gift cannot be made until the lawyer has been convicted of a crime or found to have violated the Rules of Professional Conduct. The Lawyers' Fund for Client Protection and the WSBA Office of Disciplinary Counsel work together in investigating applications to the fund. Your fund application is reviewed by the Lawyers' Fund for Client Protection Committee. There are both lawyers and nonlawyers on this Committee. If the committee agrees that a gift should be made from the fund, the committee may make gifts up to $10,000 at that time. Gifts over $10,000 must be approved by the Board of Governors at the end of the WSBA's fiscal year in September. The maximum gift is $50,000. Is there a time limit for filing an application?Generally, you must apply for a gift within three years after you discover the loss. What happens if I receive a gift from the fund and later get my money back from another source?Before a gift is made, you must agree to repay the fund if you later receive the lost money from another source. How do I contact the Lawyers' Fund for Client Protection of the Washington State Bar Association?You can contact the WSBA by mail, phone, fax, e-mail, or through our Web site:
This pamphlet was prepared as a public service by the Washington State Bar Association. It contains general information and is not intended to apply to any specific situation. If you need legal advice or have questions about the application of the law in a particular matter, you should consult a lawyer. © Washington State Bar Association. |