Seeking Financial Compensation For Financial Losses Suffered From An Attorney’s Dishonesty
The relationship between a client and an attorney is based on trust, and when the attorney breaks that trust, it can be very difficult for the client to regain it.
It is also difficult for the client to obtain reimbursement for any resulting financial losses.
Attorneys who steal from their clients not only break the trust between them and their clients, they also break the law and can be charged with a criminal offense.
Some attorneys steal from vulnerable clients who do not have much to begin with. This can make the attorney’s theft even more devastating.
Some clients who suffer financial losses through the dishonest conduct of their attorneys often end up losing everything. Even when the attorney goes to prison for many years, the client may only find a small measure of satisfaction.
Clients can report the attorney’s theft to law enforcement in addition to taking steps to seek the attorney’s suspension or disbarment. Suspension and disbarment can stop the attorney from swindling other clients, and can support a civil claim for compensation later on.
Reporting the matter to law enforcement officials can lead to the attorney’s arrest and criminal charges.
When the attorney is convicted of a crime involving theft from clients (whether that be from a settlement or other funds), the attorney is often ordered to make restitution to the clients. If some stolen money remains, the recoverable balance can be used to reimburse clients.
When these kinds of restitution orders are entered, the court may appoint a person to trace the funds the attorney stole, and ensure that the clients and other creditors are reimbursed.
However, the stolen money is often not enough to pay the clients back. Some attorneys who steal from clients do so in a manner resembling a Ponzi scheme. So the attorney steals from new clients to replace money stolen from older clients.
By the time the attorney is arrested and charged, the money is mostly spent on high-end living expenses that cannot be liquidated to pay the clients. Most clients may only be able to receive cents on the dollar of the money they lost.
If you believe you have a Connecticut legal malpractice claim, speak with an experienced legal malpractice attorney by calling (860) 561-0651 or send an online message today.
Our Practice is Limited to Connecticut
We handle Connecticut legal malpractice claims. We won’t review cases where financial losses are less than $100,000.
Recovering Compensation Through The Client Security Fund
The state of Connecticut provides another way for clients to get reimbursed for certain financial losses clients experience in the course of an attorney-client relationship. The reimbursement is made through the Client Security Fund, which is funded by a fee from each registered attorney practicing law in Connecticut.
Under the Client Security Fund, clients can only recover for losses that result from the dishonest conduct of a Connecticut attorney who has died, been deemed incompetent or insane, been disbarred or suspended from the practice of law in Connecticut, been placed on inactive status by a Connecticut court, resigned from the Connecticut bar, or against whom a judgment has been obtained with respect to the dishonest conduct.
There are additional limitations on recovery. For example, clients cannot recover for losses caused by malpractice or negligence. The attorney must have committed a dishonest act, which often implies fraud, misrepresentation, or a criminal act.
Unfortunately, the fund rarely offers a client full reimbursement for covered losses. This is especially true in situations where the client loses large amounts of money or property.
The client may need to rely on the attorney’s malpractice insurance for losses not covered by other means.
Fling a Legal Malpractice Claim
If the attorney steals from a client, the client can also file a legal claim for malpractice.
This would be helpful because the client can seek compensation for acts that would either not be considered criminal, or acts that lead to losses that would not be covered for compensation under the Client Security Fund or restitution ordered as part of a sentence.
Legal malpractice can include things such as:
- Failing to communicate with clients,
- Failing to file documents that results in losses for the client,
- Giving bad legal advice, or
- Engaging in other misconduct.
Filing a malpractice claim requires evaluating whether the attorney’s actions or inaction amounted to professional negligence.
Without proof the attorney fell below a reasonable professional standard, recovering for legal malpractice may be difficult.
Additionally, the client has to be careful to bring the malpractice action before the time for filing a claim expires.
Clients may not know when their claim arose, making it hard to determine when the statute of limitations starts.
That’s why clients harmed by an attorney should quickly consult a knowledgeable Connecticut legal malpractice lawyer to assess their claim.
Other Considerations
Attorneys or former attorneys can also take actions unrelated to practicing law.
A dishonest attorney acting in a fiduciary role, as an executor of an estate, as power of attorney, or as a trustee, and who steals from these clients is not necessarily guilty of malpractice because he is not acting in his capacity as an attorney.
For instance, attorneys who have been disbarred or suspended can still serve in these fiduciary capacities.
If attorneys steal from clients in these roles, you can still seek compensation through a lawsuit.
Contact an Experienced Legal Malpractice Lawyer in Connecticut
After a financial loss caused by your attorney, trusting another to make it right can be difficult.
However, the legal malpractice attorneys at StangerLaw LLC focus on helping those harmed by attorney misconduct in Connecticut.
Learn how we can assist you today by calling (860) 561-0651 or sending us an online message today.
