Rule 10.1 - Purpose; trustees; administration(a)Purpose; definition of "dishonest conduct." The purpose of the Lawyers' Fund for Client Protection of the Hawai'i Supreme Court ("Fund") is the reimbursement, to the extent and in the manner provided by these rules, of losses caused by the dishonest conduct of members of the bar of this State and any attorney specially admitted by any court of this State. The words "dishonest conduct" as used herein mean wrongful acts committed by an attorney in the manner of defalcation or embezzlement of money; or the wrongful taking or conversion of money, property or other things of value; or refusal to refund unearned fees received in advance where the attorney performed no services or such an insignificant portion of the services that the refusal constitutes a wrongful taking or conversion of money; or borrowing money from a client without intention or reasonable ability or reasonably anticipated ability to repay it.
(b) Appointment of trustees. The supreme court shall appoint five trustees from nominations made by the Nominating Committee of the Hawai'i Supreme Court to administer and operate the Fund in accordance with these rules. The trustees shall consist of three lawyers and two nonlawyers appointed by the supreme court for staggered five-year terms.(c) Organization; meetings. The trustees shall organize annually and shall then elect from among their number a chairperson and a treasurer to serve for a one-year term and such other officers for such terms as they deem necessary or appropriate. Meetings thereafter shall be held at the call of the chairperson. Three trustees shall constitute a quorum and may transact all business except as may be otherwise provided by this rule or by the rules and regulations promulgated by the trustees.(d) Rules. The trustees shall adopt rules, consistent with these rules and subject to meaningful review, analysis, input, and comment by the Hawai'i State Bar and ultimate approval of the supreme court, governing the administration of the Fund, the procedures for the presentation, consideration and payment of claims, and the exercise of their investment powers.(e) Reimbursement. The trustees shall serve without compensation but shall be entitled to reimbursement from the Fund for their expenses reasonably incurred in the performance of their duties. Added July 29, 1981, effective 7/29/1981; renumbered September 1984; amended May 5, 1988, effective 5/5/1988; further amended October 27, 1989, effective 11/1/1989, subject to transitional orders; further amended February 7, 1992, effective 2/7/1992; amended effective 3/10/1998; amended April 8, 2002, effective 7/1/2002; further amended February 16, 2005, effective 7/1/2005; amended February 15, 2018, effective 7/1/2018.