|
What is the Client Security Fund?
The Client Security Fund is a fund established by
the rules of the Connecticut Superior Court to provide reimbursement to
individuals who have lost money or property as a result of the dishonest
conduct of an attorney practicing law in the State of Connecticut, in
the course of the attorney-client relationship. The fund provides a
remedy for clients who are unable to obtain reimbursement for their loss
from any other source.
Where does money for the Client Security
Fund come from?
The fund is financed by a fee collected
from each attorney admitted to practice law in the State of Connecticut,
as well as each judge, judge trial referee, state referee, family
support magistrate, family support referee and workers' compensation
commissioner.
Who administers the Client Security Fund?
The fund is administered by the Client
Security Fund Committee, which is comprised of fifteen members. Nine of
the members are attorneys, three are non-attorneys, and three serve
either as a judge, appellate court judge, supreme court justice, family
support magistrate, family support referee or workers' compensation
commissioner.
What types of losses are covered by the Client Security Fund?
The Client Security Fund Committee may reimburse losses
resulting from the dishonest conduct of a Connecticut attorney who has
died, been adjudged incapable, not competent or insane, been disbarred
or suspended from the practice of law in Connecticut, been placed on
inactive status by a Connecticut court, resigned from the Connecticut
bar, or against whom a judgment has been obtained with respect to the
dishonest conduct. “Dishonest conduct” means wrongful acts committed by
an attorney, in an attorney-client relationship, or in a fiduciary
capacity arising out of an attorney-client relationship, in the nature
of theft or embezzlement of money or the wrongful taking of money,
property or other things of value. The committee will, in limited
circumstances, reimburse a loss based on an attorney’s refusal to refund
unearned fees received in advance.
What types of
losses are not covered by the Client Security Fund?
Losses that are not covered by the client security fund include:
- A loss that was the result of investment
services provided by an attorney;
- A loss presented more than four years after
the loss was discovered or should have been discovered;
- A loss suffered by a close relative,
business associate, partner, or employee of the attorney who caused the
loss;
- A loss that was the result of malpractice or
negligence;
- A loss covered by an insurance policy or
contract, bond, or surety agreement, to the extent that the loss is covered
by the same.
In some cases, the Client Security Fund may
require you to pursue other remedies that you may have against the attorney who
caused your loss before considering your claim, such as filing a civil lawsuit
against the attorney or the attorney’s estate. The committee may also require
you to report the theft to appropriate law enforcement and/or attorney
disciplinary agencies before considering your claim.
How do I file a claim?
You may file a claim by completing and
returning a claim form, available from the office of the Client Security
Fund Committee, Second Floor, Suite One, 287 Main Street, East Hartford,
Connecticut, 06118-1885, telephone (860) 568-3450. The form should be
completed providing as much information as possible. The Client Security
Fund Committee may require additional information from you in addition
to the information provided in the form. Obtain a copy of form
JD-GC-15
- "Application for Reimbursement - Client Security Fund"
(PDF).
There is no
application fee. You are not required to be represented by an attorney,
although you may have one represent you if you wish. Attorneys may not
charge a fee for assisting individuals with their claim unless the fee
is approved by the Client Security Fund Committee.
What is the claims process?
Each claim is reviewed to determine if it
is eligible for reimbursement. If the claim is not eligible for
reimbursement, you will be notified. Eligible claims are investigated,
and the Client Security Fund Committee determines, in its sole
discretion, the amount of reimbursement that will be allowed, if any,
and how payment will be made.
What happens if I am awarded payment on
my claim?
In order for you to receive payment, the
Client Security Fund Committee will require you to sign documents
transferring your claim against the dishonest attorney to the Committee,
in order to allow the Client Security Fund Committee to attempt to
obtain reimbursement from that attorney for amounts paid to you. If the
Client Security Fund Committee reimburses you for all or any part of
your loss, you are also required to cooperate with the Committee to help
them obtain reimbursement from the attorney for the amounts that were
paid to you.
How long does the claims process take?
It depends upon the length of time that
is required to obtain enough information for the Client Security Fund
Committee to make a decision regarding your claim. However, you will
receive a written decision regarding the claim once it is made by the
Client Security Fund Committee.
How can I get more information or answers
to questions?
Contact the office of the Client Security
Fund Committee at (860) 568-3450
or by email:
Security.Fund@jud.ct.gov
Please note that
these answers to questions have been provided to you for informational
purposes only, and are not intended in any way to amend or supplement
the Superior Court rules or Committee regulations which govern the
Client Security Fund Committee. Reference may be had to the Connecticut
Practice Book, available at any Superior Court library, for the official
text of the rules governing the activities of the Client Security Fund
Committee. View the "Client
Security Fund Brochure, JDP-GC-16"- in PDF format.
Back to Top
What Is
the Client Security Fund Fee?
Connecticut Practice Book Section 2-70
provides that an annual fee be assessed attorneys to fund a client
security fund. The purpose of the client security fund is to reimburse
clients who have been the victims of the "dishonest conduct" of an
attorney, as defined in Practice Book Section 2-69, and to provide
crisis intervention and referral assistance pursuant to Practice Book
Section 2-68A to attorneys admitted to the practice of law in this state
who suffer from alcohol or other substance abuse problems or gambling
problems, or who have behavioral health problems. Information about
crisis intervention and referral services provided to attorneys may be
found on the Lawyers Concerned for Lawyers
web page. Pursuant to Practice Book Section
2-70(a), the annual fee is $110.00. For answers to
questions about the client security fund fee, e-mail
Security.Fund@jud.ct.gov,
or telephone (860) 568-3450.
Who must pay the fee?
The fee must be paid by each
attorney admitted to practice in Connecticut, and each judge, judge
trial referee, state referee, family support magistrate, family support
referee and workers compensation commissioner. Attorneys admitted to the
practice of law on or after January 1 of the calendar year for which the
fee is due are not required to pay the fee for that year. See Practice Book Section
2-70 for more information.
Who is exempt from the fee?
An attorney is not exempt
from the fee because he or she practices out of state, or because he or
she does not actively practice law. Only those attorneys who have
retired, resigned, who have served on active duty in the armed forces of
the United States for a period of more than six months during the
calendar year, or who have been disbarred, are exempt from payment of
the fee. Attorneys have "retired" only if they have complied with the
provisions of Practice Book Section 2-55 and Section 51-81b(g) of the
Connecticut General Statutes. (Attorney
Retirement Notice - Form JD-CL-68). A partial, fifty percent exemption is
available to attorneys who do not engage in the practice of law as an
occupation and have not earned and do not expect to earn more
than $450.00 in legal fees or other compensation for services involving
the practice of law during the calendar year. Please note that if you
engage in the practice of law as an occupation outside of Connecticut,
you do not qualify for the partial exemption. If being an attorney is a
factor in an individual's employment, such attorney is deemed engaged in
the practice of law as an occupation for purposes of the partial
exemption and does not qualify for the partial exemption. An attorney
claiming a partial exemption must complete an exemption claim form and
submit the form with their payment. (Claim of
Exemption, Client Security Fund Fee – Form JD-GC-14E).
What should I do if my
license to practice law has been administratively suspended for
non-payment of the annual client security fund fee pursuant to Practice
Book Sections 2-70 and 2-79(a)?
Practice Book Sections 2-70 and
2-79(a) provide that the license to practice law of an attorney who
fails to pay the annual client security fund fee may be administratively
suspended until such time as the fee is paid. If your license to
practice law has been administratively suspended for non-payment of the
annual client security fund fee, you should contact the office of the
Client Security Fund Committee to obtain information about the amount of
the past due fee or fees owed. A check or money order in that amount
should then be sent to Client Security Fund, P.O. Box 1379, Hartford,
Connecticut 06143-1379. Your juris number should be included on the
check or money order. Upon receipt of a check or money order in the
correct amount, you will be reinstated. For additional information, the
office of the Client Security Fund Committee may be contacted by e-mail
at
Security.Fund@jud.ct.gov, or by telephone at (860)-568-3450.
|
