THE LAWYERS FUND FOR CLIENT PROTECTION


Lawyers Fund for Client Protection

State Finance Law §97-T

Regulations:  22 NYCRR Part 7200

Court-Controlled Attorney Grievance Committees
& Attorney Disciplinary System 

 

Commission on Statewide Attorney Discipline - July 28, 2015 hearing
1st witness: (pp. 4-14) Timothy O'Sullivan -- Executive Director
p. 10: "This Commission is also studying possible regional disparities in disciplinary sanctions. Lawyers who steal should be disbarred. The Fund's Trustees recommend that there be a uniform firm statewide disciplinary policy imposing disbarment as the sanction for a lawyer who injures his or her client by intentionally converting escrow funds. Such a policy will deliver a strong message to victims, the public and to lawyers about the administration of justice in New York State. Another issue for consideration by this Commission is the confidentiality provisions of Section 90 of the Judiciary Law which governs attorney disciplinary proceedings. Lawyers who steal should be criminally prosecuted. Our Trustees recommend that there be a uniform disciplinary policy that a Disciplinary Committee will make a prompt referral to the local district attorney when that committee has uncontested evidence of theft by a lawyer injuring a client or in admission of culpability."


Commission on Statewide Attorney Discipline's
September 24, 2015 Report
pp. 11-12
"Additional concerns have been raised regarding lengthy delays between the time the alleged misconduct comes to the attention of the disciplinary committees and resolution. This breeds troublesome uncertainty for both clients and attorneys, the former whose interests may be prejudiced during the lengthy pendency of a disciplinary complaint, and the latter who may be significantly hindered when renewing malpractice insurance policies or seeking to change jobs. Prolonged delays can also result in lawyers who will and should be suspended or disbarred continuing to practice for years—and in some cases, continuing to engage in professional misconduct—before a sanction is implemented (despite existing rules permitting the interim suspension of attorneys who may pose a risk to clients), putting the consuming public at risk. Approximately 1 percent of the attorney-orchestrated thefts reimbursed by the Lawyers’ Fund for Client Protection were committed by attorneys who were the target of pending disciplinary proceedings,^fn10 a fact likely unknown by the consumer because of existing confidentiality rules. Granted, that is a very small percentage and involves only 28 of 3,479 awards processed over a seven-year period.^fn11  Regardless, delay cost clients—and eventually the Lawyers’ Fund — $131,000.^fn12"

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NY Lawyers' Fund 2023 Annual Report
p. 4: "No tax dollars are used to finance the Lawyers’ Fund.
Also, the Fund does not receive any revenue from the IOLA (Interest on Lawyer Account) program"


JUDICIARY BUDGET FOR FY2025-2026
November 27, 2024 

Judiciary webpage

FY2025-2026 -- pp 86-87 -- $10,861,000

FY2024-2025 -- pp. 131-132 -- $10,824,866

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