Claims for Reimbursement from the Lawyers’ Fund

(a) Grounds for Claims. The Trustees will consider for reimbursement from the Lawyers’ Fund claims for losses, the reimbursement of which will advance the purpose of the Lawyers’ Fund as determined by the Trustees in the exercise of their discretion, and which arise from (1) the misappropriation or dishonesty of a member of the Delaware Bar, or (2) the death or incapacity of a Delaware lawyer. The spouse, law partner, attorney stockholder in a professional corporation, associate or conspirator of any defaulting attorney shall not have any right to file claims for reimbursement from the Lawyers’ Fund. (b) Time limitations. Claims for losses must be filed with the Trustees within two years after the claimant discovered or should have discovered the misappropriation or dishonesty. No claim shall be recognized which is based upon a misappropriation or dishonest act or acts that occurred before January 1, 1967. (c) Submission of claims. Claims shall be submitted in writing on a form approved by the Trustees, which may be found on the Lawyers’ Fund website. The claim form must be signed by the claimant or the claimant’s personal representative under oath and provide the facts and information requested by the form. (d) Investigation of claims. Upon the filing of a claim the Chair shall assign it to one or more Trustees for investigation. Such Trustees may take testimony under oath of the claimant and any other witnesses and may employ the services of a reporter to make a record of the proceedings if they deem it necessary. Such Trustees may compel by subpoena the appearance of witnesses (including the claimant) and the production of pertinent books, papers and documents for investigatory, or hearing purposes. Application may be made to the Supreme Court to enforce the appearance and testimony of any witnesses and the production of any documents subpoenaed. Upon conclusion of the investigation, the assigned Trustees shall submit a report and recommendation to the Chair, with a copy to the Executive Director. The claim will then be submitted for consideration by the Trustees. (e) Determination of merits. The Trustees shall determine, by an affirmative vote of at least seven Trustees at a duly constituted meeting and in their sole discretion, whether a claim merits reimbursement from the Lawyers’ Fund; the amount of any such reimbursement; the time, place, and manner of its payment; the conditions upon which payment shall be made; and the order in which reimbursements shall be made. In exercising their discretion, the Trustees may consider such factors as they deem appropriate, including: (1) the amounts available and likely to become available to the Lawyers’ Fund for payment of claims; (2) the size and number of claims that are likely to be presented in the future; (3) the total amount of losses caused by misappropriations of any one attorney or associated groups of attorneys; (4) the unreimbursed amounts of claims recognized by the Trustees in the past as meriting reimbursement, but for which reimbursement has not been made in the total amount of the loss sustained; (5) the amount of the claimant’s loss as compared with the amount of the losses sustained by others who may merit reimbursement from the Lawyers’ Fund; (6) the degree of hardship the loss has caused the claimant; and (7) the extent to which any negligence of the claimant contributed to the loss. (f) Limitations on payments. No payment on an allowed claim shall exceed 10% of the Lawyers’ Fund balance at the time of payment. The total of all payments to claimants in a calendar year shall not exceed 25% of the Lawyers’ Fund balance. Trustees may make partial payments on claims allowed, and any unpaid portion of an allowed claim may, in the Trustees’ discretion, be carried forward to succeeding years. No claim shall be allowed to the extent that the member of the Bar was bonded or the loss otherwise covered. (g) Subrogation and conditions of payments. Where a claim is allowed by the Trustees, the Trustees shall be subrogated to the amount of such claim paid or to be paid by the Lawyers’ Fund, and the Trustees may require each claimant, as a condition of payment, to execute such instruments, to take such action, and to enter into such agreements as the Trustees may deem appropriate, including but not limited to assignments, subrogation agreements, trust agreements, and promises to cooperate with the Trustees in making and prosecuting claims or charges against any person. (h) No attorneys’ fees. No attorney’s fee shall be paid by a claimant in connection with any allowance made by the Trustees, and any attorney representing a claimant shall be required to give to the Trustees a written statement that the attorney will accept no fee from the claimant for services rendered in connection with any recovery from the Lawyers’ Fund. (i) No appeals. No person has a legal right to reimbursement from the Lawyers’ Fund, and there shall be no appeal from a decision of the Trustees.