Practice before the Client Security Fund in Pennsylvania is very different than elsewhere. But the importance of the Client Security Fund cannot be underestimated. The Client Security Fund is funded by monies from the annual fees all lawyers pay for the privilege of practicing law in Pennsylvania. This fund is available to reimburse clients for conversions or misuse of funds by lawyers.
Under Rule of Disciplinary Enforcement 511, the board in its discretion may authorize a disbursement from the fund in the amount not exceeding the reimbursable loss caused by the dishonest conduct of a covered lawyer. Under Rule 514(b), a reimbursable loss for one covered attorney shall be $100,000. The maximum amount that can be disbursed from the fund as a result of one covered attorney shall be $1,000,000. Under Rule of Disciplinary Enforcement 514(c), the following is stated: “No lawyer shall accept payment for assisting a claimant with the filing of a claim with the fund, unless such payment has been approved by the Board.” Therefore, if a lawyer is representing a claimant, they cannot charge unless they receive permission from the board. To present counsel’s knowledge, the board does not usually give permission.
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