June 16, 2005

Devries Column

Client Security Fund protects consumers from incompetent or dishonest lawyers

This week’s question:
I was just asked to deposit $25,000 with my attorney as part of a settlement of a property case, and I did so. But I got to wondering—what if he leaves the state with my money? Do I have any protection?

Nicole N.
Almaden Valley

Dear Nicole:
I sure hope nothing like that happens with your money, but if it did, you may have some recourse.

The large majority of attorneys that I have known over the years are honest, hard working, and very reputable. But there may be an exception now and then.

If something would happen with your money, you may have grounds for a legal malpractice lawsuit. That could possibly result in you getting your money back.

You could also apply to the Client Security Fund of the State Bar of California. This is a fund where consumers who have been ripped off can apply for up to $50,000 for a theft committed by a California lawyer. It covers loss of money or property resulting from lawyer dishonesty, but not because the lawyer acted incompetently, committed malpractice or failed to take certain actions.

This is a public service of the California legal profession. Although I haven’t researched the details of this fund, I would guess that a good portion of our annual State Bar dues go to this fund. The State Bar sponsored the creation of this fund to help protect consumers of legal services by alleviating losses resulting from the dishonest conduct of attorneys.

The types of dishonest conduct that may lead to reimbursement from the fund are:

- Theft or embezzlement of money or the wrongful taking or conversion of money or property;

- Refusal to refund unearned attorney fees paid to the lawyer in advance where the lawyer performed no services whatever, or such an insignificant portion of the services the lawyer agreed to perform such that the lawyer may be regarded at the time payment was made as having lacked the intention of performing the work;

- The borrowing of money from a client without the intention or reasonably anticipated to repay the money;

- Obtaining money or property from a client by representing that it would be used for investment purposes when no investment is made; and

- An act of intentional dishonesty or deceit that directly leads to the loss of money or property that actually came into the lawyer’s possession.

A consumer cannot seek reimbursement simply because the consumer was dissatisfied with the legal work performed. If you have grounds for the complaint, the consumer must first file a complaint against the attorney with the Attorney Discipline System of the State Bar before seeking reimbursement from the Client Security Fund.

If you want more information, feel free to log onto: www.calsb.org. Then go to State Bar of California, home page. Then click on Public Services followed by Reimbursement for Attorney misconduct. Then click on Client Security Fund Home Page.

For a direct link: http://www.calbar.ca.gov/state/calbar/calbar_generic.jsp?cid=10177&id=1379.
Or you can contact: Client Security Fund, 1149 S. Hill Street, Los Angeles, Calif., 90015. Telephone: 213-765-1140.

Good luck, Nicole. I hope your concern is just that and that everything will go smoothly with your settlement.

Donald J. DeVries
Almaden Valley


Donald J. DeVries is an attorney practicing law in Almaden Valley. If you would like him to answer your question in his next Almaden Times column, you can reach him by e-mail at don@almadenvalleylawyers.com, fax at (408) 268-6502, telephone at (408) 268-9500, or mail at, 6475 Camden Avenue, Suite 200, San Jose, CA 95120. Your matters are personal and private, so of course, he will not disclose your identity or any details about your situation. To view Almaden Times columns since 1986 visit www.almadenvalleylawyers.com. DeVries writes this column to provide you with general information about important legal matters affecting California residents—not to give you legal advice about your specific matter. No attorney-client relationship is created by these articles. The law is complex and constantly changing and varies from state to state. So you should consult an attorney before taking any action that would affect your personal or business matters.