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Rule 14-902. Purpose and scope; establishment of Fund.

(a) The Fund is established to reimburse clients for losses causedby the dishonest conduct committed by lawyers admitted to practice in Utah orlicensed paralegal practitioners licensed in Utah.

(b) The purpose of the Fund is to promote public confidence in theadministration of justice and the integrity of the legal profession byreimbursing losses caused by the dishonest conduct of lawyers admitted andlicensed to practice law in Utah or licensed paralegal practitioners licensedin Utah, occurring in the course of the lawyer/client, licensed paralegalpractitioner/client or fiduciary relationship between the lawyer or licensedparalegal practitioner and the claimant.

(c) Every lawyer and licensed paralegal practitioner have anobligation to the public to participate in the collective effort of the Bar toreimburse persons who have lost money or property as a result of the dishonestconduct of another lawyer or licensed paralegal practitioner. Contribution tothe Fund is an acceptable method of meeting this obligation.

(d) These rules shall be effective for claims filed after August1990, and the Committee, which was previously authorized under the formerresolution, may act under the terms of the former resolution on claims filedprior to the effective date of these rules.

Effective May 1, 2019

Rule 14-902 Note.

By resolution of the Board of Commissioners of the Utah State Bar,a Client Security Fund was approved and established by the Supreme Court, effectiveApril 9, 1977. The Fund was established to provide meaningful, prompt costreimbursements to clients who had been injured by a lawyer's dishonest act. Theoriginal resolution did not provide sufficient rules and/or guidelines for theCommittee that was embodied by the resolution to utilize in making itsrecommendations to the Board of Bar Commissioners. The American Bar Associationhas adopted, as of August 9, 1989, Model Rules for Lawyers' Fund for ClientProtection. The following Rules adopt many of the principles from the AmericanBar Association Model Rules, as well as features from other states and from theprior resolution of the Board of Commissioners of the Utah State Bar, asapproved by the Supreme Court.

Licensed Paralegal Practitioners were included in the Fund in 2019after the Utah Supreme Court exercised its constitutional authority to governthe practice of law and authorized Licensed Paralegal Practitioners to providelimited legal services in the practice areas of: (1) temporary separation,divorce, parentage, cohabitant abuse, civil stalking and custody and support;(2) forcible entry and detainer; and (3) debt collection matters in which thedollar amount in issue does not exceed the statutory limit for small claimscases.