| The Clients Security Fund Committee was established in 1965 by Court Rules of the Oklahoma Supreme Court for the following purposes:
- To furnish a means of protecting the reputation of lawyers in general from the consequences of dishonest acts of a very few.
- To furnish a means of reimbursement to clients for financial losses occasioned by dishonest acts of lawyers:
- A. To the extent that the fund is capable of making reimbursements; and;
- B. If in the opinion of the Board of Governors upon consideration of the Committee’s recommendation, the client is entitled to reimbursement.
The committee is composed of 15 members, 12 lawyer members and three non-lawyers who are appointed by the OBA president with the approval of the Board of Governors in staggered three-year terms. The Office of the General Counsel provides staff services for the committee. The members meet to consider payment of claims of clients of former attorneys occasioned by the attorney’s dishonest act. The Board of Governors budgets and appropriates $100,000 each year to the Clients’ Security Fund for the payment of approved claims.
The committee‘s rules, which were approved by the Supreme Court, established a permanent fund. Under the rules, the amount available for reimbursement each year will include the budgeted $100,000 amount, any earned income from that amount, plus any earned income from the permanent fund. The balance in the permanent fund as of Aug. 31, 2007, has grown to $835,136.77. Any surplus not paid to claims from these funds becomes part of the permanent fund. The permanent fund also includes other funds received by the association relating to the committee including voluntary contributions to the fund, restitution, or subrogation received for claims paid. To date, the fund has received over $31,271.97 in restitution payments in the year 2007. The appropriated annual funds and the Clients’ Security Permanent Fund are invested at the direction to the Board of Governors.
This year the committee is considering 42 new claims filed in 2007 and five claims carried over from 2006. As of Sept. 30, 2007, four claims have been resolved and the balance of pending claims will be considered at the committee’s last two committee meetings for 2007. It is apparent that the small number of former attorneys involved generally failed to utilize written fee agreements and failed to follow the rules regarding trust accounts.
The committee wishes to acknowledge the hard work and diligence of the Office of the General Counsel in assisting the committee in the review of these claims. Conclusions and recommendations regarding the appropriateness of each claim as well as the amount available for reimbursement will be submitted to the Board of Governors in December for final approval. Under the rules, the Board of Governors can issue a press release regarding fund reimbursements.
The Clients’ Security Fund is a valuable program that protects the reputation of the bar from dishonest acts of a very few lawyers.
Micheal Salem
Chairperson
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