Lawyers’ Fund for Client Protection Releases Second-Quarter Report

During the second quarter of 2022, the New Jersey Lawyers’ Fund for Client Protection, funded by the state’s lawyers and judges, paid $12,341.01 to clients for losses caused by three lawyers, the Board of Trustees announced today.

The purpose of the fund is to pay on behalf of the honest majority of lawyers for the wrongdoing of the few who are suspended or disbarred for misappropriation. In its 53-year history, the fund has paid claims against a total of 873 attorneys. There are 98,506 lawyers licensed in New Jersey.

The fund operates under the authority of the Supreme Court pursuant to Court Rule 1:28. The court appoints the seven trustees, five attorneys and two public members, who serve staggered five-year terms without compensation. The trustees consider clients’ claims and make awards when it is determined that the loss was caused by dishonest lawyer conduct, under fund rules. Cases involving legal malpractices and negligence are handled through civil court actions and fee disputes through the district fee arbitration committees established by the Supreme Court.