Section 4 - Processing Claims

As amended through June 11, 2024

4.1 All statements of claim must be submitted to Client Security Fund, Oregon State Bar, 16037 SW Upper Boones Ferry Rd., P. O. Box 1689, Tigard, Oregon 97281-1935.

4.2 The administrator shall assign each statement of claim to a member of the Committee for investigation and report, and the Bar shall reimburse such member for reasonable out of pocket expenses incurred in making such investigation. The administrator shall send a copy of the statement of claim to the lawyer who is the subject of the claim at the lawyer's last known address. Before assigning a statement of claim for investigation, the administrator may request of the claimant further information with respect to the claim.

4.3. A Committee member to whom a statement of claim is referred for investigation shall conduct such investigation as seems necessary and desirable to determine whether the claim is for a reimbursable loss and is otherwise in compliance with these rules in order to guide the Committee in determining the extent, if any, to which the claimant may receive an award from the Fund.

4.4 The Committee member to whom a claim is assigned for investigation shall submit an investigative report to the administrator within a reasonable time after the assignment of the claim to that member. The member shall include in such report a discussion of the criteria for payment set by these rules and a recommendation regarding payment on such claim from the Fund.

4.5 At any meeting of the Committee, claims may be considered for which an investigation has been completed.

4.6 No award may be made to any claimant if the statement of claim has not been submitted and reviewed pursuant to these rules, and approved at a duly noticed meeting of the Committee.

4.7 No award from the Fund, on any one claim arising from attorney misconduct which occurred before January 1, 2022, may exceed $50,000. No award from the Fund, on any one claim arising from attorney misconduct which occurred on or after January 1, 2022, may exceed $100,000. For the purposes of this rule, attorney misconduct arises on the earlier of:

4.7.1 The date that the attorney-client relationship is terminated;

4.7.2 The date that claimant demanded payment from the attorney;

4.7.3 The date that the attorney was disbarred or suspended; or

4.7.4 The date that the claimant knew of the attorney misconduct.

4.8 The Committee shall determine the amount of loss, if any, for which any claimant may receive an award from the Fund. The Committee may give final approval to an award of less than $5,000 and shall submit regular reports to the Board of Governors reflecting all awards finally approved by the Committee since the Board's last meeting.

4.9 The Committee's denial of a claim is final unless a claimant's written request for review by the Board of Governors is received by the administrator within 20 days of the Committee's decision. The 20 days runs from the date the Committee's decision is sent to the claimant by mail, exclusive of the date of mailing.

4.10 If the Committee determines that a claim should be approved in an amount of $5,000 or more, the Committee must submit its recommendation to the Board of Governors for approval. When reviewing such claims, the Board of Governors shall conduct its review pursuant to the provisions of these rules. The Board of Governors may approve or deny each claim presented to it for review, or it may refer a claim back to the Committee for further investigation prior to making a decision.

4.11 Awards from the Fund are discretionary. The Committee or Board of Governors may deny claims in whole or part for any reason.

4.12 The Board of Governors may determine the order and payment of awards; may defer or pro-rate awards based on funds available in any calendar year; and may allow a further award in any subsequent year to a claimant who received only partial payment of an award. In exercising its discretion, the Board of Governors shall consider the following objectives:

4.12.1 Timely and complete payment of approved awards;

4.12.2 Maintaining the integrity and stability of the Fund; and

4.12.3 Avoiding frequent or significant fluctuations in the member assessment.

4.13 A finding of dishonest conduct by the Committee is for the sole purpose of resolving a claim and is not to be construed as a finding of misconduct for purposes of any other proceeding.

4.14 The Committee may provide information obtained by the Committee about a lawyer's conduct to any agency or entity that the Committee determines may be helpful in resolving the claimant's concerns.

Revised Effective 1/1/2022.