NJ Client Protection Fund Addresses Misappropriations by Lawyers, Awards Claims in Fourth Quarter 2023
MORRISTOWN, NJ – In a significant move towards upholding the integrity of the legal profession, the New Jersey Lawyers’ Fund for Client Protection has compensated clients victimized by attorney misconduct. Between October and December 2023, the fund, overseen by trustees appointed by the Supreme Court of New Jersey, reimbursed a total of $708,864.40 across 16 claims, addressing misappropriations by 10 New Jersey lawyers.
These awards were necessitated by the theft of escrowed funds in real estate transactions and other civil matters, as well as cases where lawyers failed to deliver promised services despite receiving payment. Notably, two of the largest claims involved $300,000 and $257,21.40, misappropriated from a real estate matter and an estate, respectively.
The New Jersey Lawyers’ Fund for Client Protection, established in 1961 by the New Jersey State Bar Association and expanded in 1969, serves to reinforce trust in the legal community. Currently, 99,541 lawyers are practicing in New Jersey, with only a minuscule fraction ever involved in approved claims. Over its 54-year history, the fund has resolved 4,884 claims against 895 attorneys, amounting to $98,448,785.39, while recovering $26,472,099.43 from liable parties.