November 2004
Clients' Security Fund disburses $110K-plus in claims, supreme court
approves name change and reinstatement requirements
The Clients' Security Fund approved
reimbursements totaling $110,634.19 to 16 victims of lawyer theft at its
October meeting. The committee also deferred three and denied four
claims for reimbursement. The Wisconsin Supreme Court unanimously
approved a State Bar petition to change the requirements for attorneys
seeking reinstatement of a suspended or revoked license and to change
the name of the fund. Effective Jan. 1, the fund will be called the
Wisconsin Lawyers' Fund for Client Protection.
Multimedia
training tapes available to promote diversity and retention in the legal
profession
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The State Bar Diversity Outreach Committee announces the availability
of the American Bar Association's (ABA) multimedia package, "Raising the
Bar: Diversity and Retention in the Legal Profession," to assist law
firms, legal employers, and legal organizations in enhancing their
diversity programs.
"The Diversity Outreach Committee is committed to a racially and
ethnically diverse State Bar and a legal profession that is conscious of
differences and committed to valuing those differences," says Milwaukee
attorney Curry First, committee cochair. "We believe `Raising the Bar'
is a useful tool that can be used by groups wishing to improve or expand
their programs. `Raising the Bar' answers diversity and retention
questions and offers a perspective on the issues, problems, and
real-world solutions to retaining minority lawyers."
Produced by the ABA Commission on Racial & Ethnic Diversity in
the Profession, "Raising the Bar" is made available through a donation
from American Family Insurance Company. The package features three
videotapes, two audiotapes, and written materials. Workbooks include
diversity and retention scenarios for individual or group workshops and
a leader's guide that provides discussion points.
To borrow "Raising the Bar," contact the State Bar at (800) 728-7788
or (608) 257-3838. There is a minimal cost of approximately $15 for
shipping and handling.
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"We should be proud of our profession, which stands alone in
providing this method of voluntary reimbursement for client losses,"
says Committee Chair David Reddy, Delavan. "Increasing public awareness
of the Fund remains one of our top priorities."
Claims were approved for clients of John V. Asher (one claim for
$815), the late Brian Blacher (one claim for $19,500), Alan D. Eisenberg
(three claims totaling $11,500), Daniel Ensley (one claim for $800),
Phaidra Knight (one claim for $41,514.95), Robert Emmett Mahoney (two
claims totaling $5,750), Francis W. Murphy (two claims totaling
$24,573.24), Virginia Rose Ray (one claim for $2,500), Hans Ribbens (one
claim for $950), Clay Teasdale (two claims totaling $1,425), and
Michelle Tully (one claim for $1,306).
The Wisconsin Supreme Court established the fund in 1981 to reimburse
people who lost money through dishonest acts of Wisconsin attorneys,
including unearned retainer, theft from estate, misappropriation of
funds, conversion of trust account funds, and theft by investment. All
claims for reimbursement and all committee proceedings are subject to
the provisions of SCR 12.04. All Wisconsin-licensed attorneys, except
those classified as inactive, subsidize the fund. Reimbursement
decisions are made at the discretion of the committee, which meets twice
a year.
Changes to program. On April 21, the Wisconsin
Supreme Court unanimously approved a State Bar petition to change the
fund's name to the Wisconsin Lawyers' Fund for Client Protection. The
request reflects amendments made in 1989 when the ABA model rules
changed to the Model Rules for Lawyers' Funds for Client Protection.
State funds have been encouraged to adopt the new name, which is more
descriptive of the fund's purpose.
The court also approved the petition's request to amend SCR 22.29 to
require that an attorney seeking reinstatement of a suspended or revoked
license be required to reimburse the fund for any payments made to
injured clients as a result of the attorney's conduct, or to explain why
this is not possible.
Currently, SCR 22.29 requires an attorney only to make restitution to
injured clients or provide an explanation why it is not possible. The
State Bar Board of Governors believes reimbursement should be a
condition of reinstatement, because fund payment to a client signifies
that the lawyer's dishonest conduct caused a loss that was restored
through an assessment against all members of the Bar.
Because it is recognized that in certain cases it may not be possible
for an attorney to make full restitution to injured clients and to the
fund, the fund has deferred its right to reimbursement until the clients
have been made whole. SCR 22.29 requires that when full restitution is
not accomplished, the petitioning attorney must explain why. This
requirement provides the court the latitude necessary to balance the
rights of the petitioning attorney with the goals of fully restoring
injured clients and reimbursing the client protection fund.
The petition was published in the September
Wisconsin Lawyer. The next meeting is scheduled for April
5.