The Lawyers’ Fund for Client Protection was created by the NJ Supreme Court to pay back clients whose money or property a lawyer took dishonestly. The fund is run by a board of trustees who set the rules and decide on claims. It is funded by an annual fee paid by all lawyers and judges in New Jersey, not through taxes.

Requirements for Filing a Claim

To get money from the Lawyer's Fund, the following requirements must be met:

1. The lawyer was acting as your lawyer, and you gave the lawyer money honestly and in good faith.
2. The lawyer took the money for themselves without your permission.
3. You lost money because of the lawyer's dishonest actions.

Generally, claims can only be made against lawyers who have died, been disciplined (like being suspended or disbarred), or been found guilty of stealing money or property. (Other claims might be allowed if certified by an ethics committee.)

Claims cannot be made for fee disputes, bad investments made by lawyers, or professional mistakes (malpractice).

Time and Claim Limits

You must file your claim within one year of the above events. The trustees can extend this time limit in special situations.

The most you can be paid for a claim is $400,000 (for claims made after January 1, 2007). If there are multiple claims against the same lawyer, the lawyer will not be required to pay any more than $1.5 million total, unless the Lawyers’ Fund asks the Court to raise this limit. The Lawyers’ Fund can ask the Court to raise this limit.

How to File a Claim

The form to file a claim with the Lawyers’ Fund is free. You can find it and instructions on the NJ Lawyers’ Fund for Client Protection website, or by calling 855- 533-FUND (3863), option 2. You can also request the form by writing to: NJ Lawyers’ Fund for Client Protection, P.O. Box 961, Trenton, NJ 08625-0961.

Submit the completed claim form with your original signature, two copies, and proof of your claim (like canceled checks or letters). You also need to notify the county prosecutor where the lawyer works and the Office of Attorney Ethics (OAE) with the details of your claim. The OAE address is Office of Attorney Ethics, P.O. Box 963, Trenton, NJ 08625-0963.

The Lawyers' Fund staff can help you identify what proof you need, but you are responsible for completing the form and providing all necessary information and documents.

What Happens Next

After you file the claim, the lawyer will get a copy of the form and your documents. The lawyer can then respond and provide their own proof.

The trustees might decide the case using only the written documents, or they might hold a hearing where you, the lawyer, and other witnesses can testify. They will look at the terms of payment, your loss, how your loss compares to others against the same lawyer, the hardship you suffered, and any negligence (fault) on your part. The trustees' decision is final and cannot be appealed.

If your claim is successful, you might be paid by the Lawyers’ Fund and the lawyer will have to pay back the Lawyers' Fund for the money you received.

For more information, visit the NJ Lawyers' Fund for Client Protection website.

This information last reviewed: Oct 30, 2024