What losses are covered by the Lawyers Fund?
The Trustees may reimburse losses caused by the dishonest conduct of lawyers admitted to the practice of law in New York State, up to a maximum of $300,000 for each client loss. “Dishonest conduct” means the wrongful taking of clients’ money or other property, in the practice of law, after June 1, 1981. Clients must apply for reimbursement within two years after they discover their loss. Typical losses covered include the theft of money from estates of dead clients; escrow funds in real property closing; settlements in personal injury actions; and money embezzled from clients in investment transactions.
