Clients' security fund.

• Author: Stamm, Warren Jay
• Position: Annual Reports

It is with great pride and privilege that I submit this annual report on behalf of the Clients' Security Fund. By way of background, The Florida Bar Clients' Security Fund (CSF) was established to reimburse clients who have suffered a loss of their money as a result of misappropriation, embezzlement, or other wrongful taking or conversion by a member of The Florida Bar in the course of an attorney-client relationship. The Clients' Security Fund is currently financed by $25 of every Bar member's annual dues and has over $2.1 million budgeted for fiscal year 09-10 to pay claims. The maximum payable on any misappropriation claim is $250,000. The fund also reimburses clients up to $2,500 for legal fees when the attorney fails to provide any useful services. In the last fiscal year, the fund received 439 claims and paid out more than $1.6 million on claims. As of the date of this report, the fund has received 469 new claims for this fiscal year and approved losses in excess of $1.9 million. Fee claims are paid as approved, whereas misappropriation claims are paid on a pro rata basis at the end of the fiscal year. Since its inception, the Clients' Security Fund has paid out over $21 million dollars to over 8,300 claimants.

Procedurally, claims are filed in writing by the former client, reviewed by Bar staff and, when appropriate, referred to a member of the committee for investigation. The 2009-10 committee is made up of 27 attorneys appointed from all regions of Florida by the Bar's president. The committee formally meets four times during the year, but is actively engaged in the review and investigation of claims and participates in interim meetings. Although committee meetings are confidential, final action on claims is subject to limited disclosure. Committee recommendations

are submitted to the Board of Governors for final consideration.

While we often do not know the reason for an attorney's dishonesty, regardless of the reason, defalcations by attorneys profoundly damage the public trust in...