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Proposed | Comments Sought on Proposed Amendments to Clients’ Protection Fund Rules

The Virginia State Bar Clients’ Protection Fund Board seeks comments on proposed amendments to the Clients’ Protection Fund Rules. The purpose of the amendments is to raise the per-petitioner cap from $75,000 to $100,000 for losses incurred on or after July 1, 2021. The amendments will be presented to Bar Council on October 29, 2021. 

The proposed CPF Rule V.F.5 revision is as follows:

The proposed changes are noted below with deletions denoted by strikethrough and additions with underlining.

The loss to be paid to any one petitioner shall not exceed $100,000 for losses incurred on or after July 1, 2021, or $75,000 for losses incurred on or after July 1, 2015, and prior to July 1, 2021, or $75,000 for losses incurred on or after July 1, 2015, or $50,000 for losses incurred on or after July 1, 2000, and prior to July 1, 2015, or $25,000 for losses incurred prior to July 1, 2000. For purposes of this provision, the Board may regard two or more persons, firms, or entities as one Petitioner with respect to a Lawyer’s dishonest conduct in handling a given matter where the facts and entities are found to justify such a conclusion in the sole discretion of the Board.

The Clients’ Protection Fund Board Rules Subcommittee sought the advice and input of the Clients’ Protection Fund Finance Subcommittee on the wisdom and feasibility of pursuing, through appropriate administrative channels, an increase of the per-petitioner cap from $75,000 to $100,000.

At a meeting held on March 30, 2021, the Finance Subcommittee voted unanimously to inform the Rules Subcommittee of its support for an increase in the per-petitioner cap. The Finance Subcommittee believes that the sound financial footing and claims history of the fund can support an increase in the maximum amount awarded to any one petitioner without hindering the fiscal soundness of the fund and its ability to compensate the victims of dishonest Virginia lawyers.

The Clients’ Protection Fund Board voted to accept the proposed revision to CPF Rule V.F.5 at its May 7, 2021, meeting. The CPF Board will request that the VSB Council adopt the rule revision.

 

Inspection and Comment

Any individual, business, or other entity may file written comments in support of or in opposition to the proposed changes with Vivian R. Byrd, Clients’ Protection Fund Administrator, not later than September 30, 2021. Comments may be submitted by mail to 1111 East Main Street, Suite 700, Richmond, Virginia 23219-0026 or by email to cpf@vsb.org.

Updated: May 27, 2021