May 2006

Lawyers' Fund for Client Protection disburses $170K-plus, sets FY 07 assessment at $25

In April, the Wisconsin Lawyers' Fund for Client Protection Committee approved $171,479 in reimbursements to 14 victims of lawyer theft. The committee denied seven claims and deferred five claims totaling $61,188 to its Aug. 1 meeting.

Fourteen claims were approved for clients of Thomas A. Fadner II (one claim for $300), Daniel R. Grade (one claim for $7,780), Arik J. Guenther (one claim for $541), Charles R. Koehn (seven claims totaling $21,760), Mark Gerard Pierquet (one claim for $400), and Gerald Proost (three claims totaling $140,398).

The committee approved 82 claims during fiscal year (FY) 2006, July 1, 2005 - June 30, 2006, for a total of $450,900. The committee also set the FY 2007 assessment at $25, which is the maximum assessment that can be set. The committee determined the assessment amount by dividing the claims paid in FY 06 by the number of attorneys to be assessed and considering the anticipated fund balance at the end of the current fiscal year and claims anticipated to be filed in FY 07. The supreme court mandates that the Bar maintain a fund balance of $250,000 as of May 1 each year.

"This has been an unprecedented year of disbursements, and the committee is dedicated to fiscal responsibility," says Committee Chair Dave Reddy. "Due to the anticipated claims to be filed in 2007 and considering the claims deferred to the August meeting, we found it necessary to assess the maximum amount of $25."

The Wisconsin Supreme Court established the fund, formerly named the Clients' Security Fund, in 1981 to reimburse people who lost money through dishonest acts of Wisconsin attorneys. Claims include unearned retainer, theft from estate, misappropriation of funds, conversion of trust account funds, and theft by investment. Claims for reimbursement and all proceedings of the committee are subject to SCR 12.04-11. Wisconsin-licensed attorneys, except those classified as inactive, subsidize the fund through an annual assessment. Reimbursement decisions are made at the discretion of the committee, which meets three times a year.

For more information, visit www.wisbar.org/clientprotection or contact Kris Wenzel at kwenzel@wisbar.org, (800) 444-9404, ext. 6185, or (608) 250-6185.

Inside the Bar