Rule 10-106. Eligible Claims
State Bar Programs / Part X - Clients' Security Fund / Rule 10-106. Eligible Claims
(a) The loss must be caused by the dishonest conduct of the lawyer and shall have arisen out of and by reason of a lawyer-client relationship, or a fiduciary relationship, between the lawyer and the claimant.
(b) As used in these Rules, "dishonest conduct" means wrongful acts committed by a lawyer in the nature of theft or embezzlement of money or the wrongful taking or conversion of money, property or other things of value.
(c) A complaint against the lawyer who caused or is alleged to have caused such loss shall have been filed with the State Disciplinary Board of the State Bar of Georgia and final disposition of such complaint has been made resulting in disciplinary action against the lawyer in the form of indefinite suspension, disbarment, or voluntary surrender of license.
(d) The claim shall be filed no later than two years after the date of final disciplinary action by the Supreme Court. In the event disciplinary action cannot be prosecuted due to the fact that the attorney is either deceased or cannot be located, the claim shall be filed no later than five years after the dishonest conduct was first discovered by the applicant; provided, however, the claim shall be filed no later than seven years after the dishonest conduct occurred.
(e) Except as provided by Section (f) of this Rule, the following losses shall not be reimbursable:
(1) Losses incurred by spouses, children, parents, grandparents, siblings, partners, associates and employees of lawyer(s) causing the losses;
(2) Losses covered by any bond, surety agreement, or insurance contract to the extent covered thereby, including any loss to which any bonding agent, surety or insurer is subrogated, to the extent of that subrogated interest;
(3) Losses incurred by any financial institution which are recoverable under a "banker's blanket bond" or similar commonly available insurance or surety contract;
(4) Losses incurred by any business entity controlled by the lawyer, or any person or entity described in Section (e) (1) hereof;
(5) Losses incurred by any governmental entity or agency;
(6) Losses incurred by corporations or partnerships, including general or limited.
(f) In cases of extreme hardship or special and unusual circumstances, the Board may, in its discretion, recognize a claim which otherwise would be excluded under these Rules in order to achieve the purpose of the Fund.
(g) In cases where it appears that there will be unjust enrichment, or the claimant unreasonably or knowingly contributed to the loss, the Board may, in its discretion, deny the claim.
(h) The Board shall require the applicant to exhaust his civil remedies unless the Board determines that the pursuit of the civil claim is not feasible or practical.
GO TO Rule 10-105. Investigations GO TO Rule 10-107. Payments Return to handbook browser.