R. Regul. Fl. Bar 7-2.3

As amended through November 4, 2024

Rule 7-2.3 - PAYMENTS

(a) Payment is Discretionary. The board or the committee may grant monetary relief up to the amount of its authority as set forth in this chapter if either determines that a reimbursable loss has been sustained by a claimant and the circumstances warrant relief, taking into consideration the resources of the fund and the claim's priority. Any grant of monetary relief is solely at the board or the committee's discretion within its respective authority and is not a right of any claimant. No reimbursement will be made from the fund unless and until reimbursement has been authorized by the board or the committee within its respective authority, and the claimant has executed assignments or other documents as reasonably requested by the board or committee. Staff may require appropriate documentation that conditions imposed on reimbursement of the claim have been satisfied and that the identity of the proper party or party's representative is verified before payment. Neither the bar, the board, the committee, nor staff will incur any liability for nonpayment of claims or for erroneous payments. The decision of the board is final and not subject to appeal or other review.

(b) Determination of Amount and Manner of Payment.

(1)Determination of Amount and Conditions of Payments. The board will determine the amount of relief and the manner, conditions, and terms on which claims will be paid.

(2)Fee Claims. The maximum amount payable for an individual fee claim is $5,000. Fee claims may be paid on approval except as provided elsewhere in this chapter.

(3)Misappropriation Claims.

(A) The maximum amount payable for a misappropriation claim is $250,000.

(B) Misappropriation claims with an approved loss amount of $1,000 or less may be paid on approval.

(C) All approved misappropriation claims of more than $1,000 will be held for payment until the end of the fiscal year in which they were approved and will be pooled for payment.

(D) Misappropriation claims that relate to services under a contingent fee or sliding scale agreement will be considered in the same manner as other claims. If a copy of the written fee agreement is unavailable, or the agreed-on fee cannot be determined, it is presumed that the fee agreement contained the standard language mandated by the Rules Regulating The Florida Bar or Florida law. In the absence of other evidence, the committee will presume that the fee charged under the fee agreement was the maximum permitted by the rules or Florida law.

(4)Unclaimed Funds. If any approved payment remains unclaimed at the close of the fiscal year following the fiscal year in which the claim is approved, those funds will be returned to the fund. A final request for response will be sent to the claimant(s) prior to the return of the funds.

(c) No Right to Payment. No claimant has any right, legal or equitable, contractual or statutory, to a grant of monetary relief from the fund. Neither a determination by the board to pay any portion or all of any claim, nor partial payment, vests any such right in the claimant.

R. Regul. Fl. Bar 7-2.3

Amended July 23, 1992, effective 1/1/1993 (605 So.2d 252); 9/24/1998, effective 10/1/1998 (718 So.2d 1179); amended December 15, 2000 by the Board of Governors of The Florida Bar; Amended May 29, 2009, effective 7/1/2009, by the Board of Governors of The Florida Bar; amended May 28, 2010, by the Board of Governors of The Florida Bar, effective 7/1/2010; amended and effective 3/29/2019 by the Board of Governors of The Florida Bar; amended March 3, 2022, effective 5/2/2022 (SC20-1467). Amended and effective 12/2/2022 by the Board of Governors of The Florida Bar.

Comment

Payment from the Clients' Security Fund is discretionary. There is no right to payment. If approved, the amount of payment is limited by these rules and the amount in the fund. Approved claims may include only the amount paid in attorney's fees or the amount of the misappropriation. Other damages incurred by the claimant will not be reimbursed. For example, the fund will not reimburse loss of interest, charges for telephone calls or travel, the difference between the settlement amount and the amount the claimant thought the matter should have been settled for, the loss in value of an item or property, or other sums not paid directly to the lawyer. If it is determined that part of the money misappropriated by the lawyer included sums to be used to pay a claimed lien, the amount of the lien will not be deducted from the loss. The claimant is liable for the lien.

Before payment, staff will contact the claimant to obtain information necessary for payment. If staff learns that the claimant has died, staff will request documentation regarding the claimant's estate and may only issue payment after the documentation has been provided and the proper payee is identified. If staff is in doubt regarding the proper payee, staff will seek guidance from a designated reviewer.

As an example, in misappropriation claims where copies of the contingent fee or sliding scale agreements are not available, the permissible maximum contingent fee contract for a settlement reached without litigation in a personal injury or wrongful death case is capped in these rules. If the gross proceeds from the personal injury or wrongful death settlement totaled $15,000.00, and the fee is capped at 33 1/3%, the committee will presume that the fee agreed to was $5,000, and the amount misappropriated would be $10,000. If the underlying claim was against the state or any of its agencies or subdivisions, then the maximum allowable contingency fee is 25% per Fla. Stat. § 768.28(8).