12.03(1)(b)1.
1. Protect the clients' rights, files and property.
12.03(1)(b)2.
2. Notify all clients being represented in pending matters of the appointment of the attorney under
par. (a) as promptly as possible, personally or by mail, and advise them to seek counsel of their choice. At the request of a client, an attorney appointed under
par. (a) may act as interim counsel, subject to the
par. (c) 4.
12.03(1)(b)3.
3. Deliver client files and property to the clients upon their request.
12.03(1)(b)4.
4. Collect outstanding attorney fees, costs and expenses and make arrangements for the prompt resolution of any disputes concerning outstanding attorney fees, costs and expenses.
12.03(1)(b)5.
5. Assist and cooperate with the deceased attorney's personal representative, special administrator or other representative of the deceased attorney's estate in the termination or sale of the law practice under SCR 20:1.17.
12.03(1)(c)
(c) An attorney appointed under
par. (a) and his or her law firm shall:
12.03(1)(c)1.
1. Not serve in any other capacity in the administration of the deceased attorney's estate.
12.03(1)(c)2.
2. Be compensated from the assets of the estate for his or her professional services and reasonable and necessary expenses.
12.03(1)(c)3.
3. Be eligible to be a purchaser of the law practice under SCR 20:1.17.
12.03(1)(c)4.
4. Not be permitted to act as successor attorney except and until the trustee attorney becomes a purchaser of the law practice under SCR 20:1.17.
12.03(1)(d)
(d) The personal administrator and heirs of the deceased attorney may nominate a trustee attorney.
12.03(1)(e)
(e) The estate of the deceased attorney shall be liable for the compensation and expenses of the trustee attorney ordered under sub. (3).
12.03(2)(a)(a) Upon the abandonment or disappearance of an attorney who is a sole practitioner that continues for not less than 21 days, any interested person or person licensed to practice law in this state may file a petition in the circuit court for the county in which the attorney resided or maintained his or her office alleging the abandonment or disappearance and that no satisfactory arrangements have been made to continue the practice. The petition and a notice of hearing shall be served personally upon the attorney. If personal service upon the attorney cannot be accomplished, notice by publication of a class 1 notice, as provided in
ch. 985 of the statutes, and mailing shall be sufficient service, except that the court may determine that additional notice is required. Upon a finding that the attorney has disappeared or abandoned his or her practice, if no other satisfactory arrangements have been made to continue the practice, the court shall appoint a trustee attorney and notify the office of lawyer regulation of the appointment.
12.03(2)(b)
(b) An attorney appointed under
par. (a) shall enter the offices of the absent attorney and do all of the following:
12.03(2)(b)1.
1. Protect the clients' rights, files and property.
12.03(2)(b)2.
2. Notify all clients being represented in pending matters of the appointment of the attorney under
par. (a) as promptly as possible, personally or by mail, and advise them to seek counsel of their choice. At the request of a client, an attorney appointed under
par. (a) may act as interim counsel, subject to
par. (c) 3.
12.03(2)(b)3.
3. Deliver client files and property to the clients upon their request.
12.03(2)(b)4.
4. Collect outstanding attorney fees, costs and expenses and make arrangements for the prompt resolution of any disputes concerning outstanding attorney fees, costs and expenses.
12.03(2)(b)5.
5. Collect any moneys and safeguard any assets in the office of the absent attorney and hold the moneys and assets in trust pending their disposition upon order of the court.
12.03(2)(c)
(c) An attorney appointed under par. (a) and his or her law firm shall:
12.03(2)(c)1.
1. Not serve in any representative capacity for the absent attorney or his or her family.
12.03(2)(c)2.
2. Be compensated from the assets collected for his or her professional services and reasonable and necessary expenses.
12.03(2)(d)
(d) The absent attorney shall be personally liable for the compensation and expenses of the trustee attorney ordered under
sub. (3).
12.03(2)(e)
(e) The trustee attorney shall hold in trust any remaining assets of the attorney subject to order of the court.
12.03(3)
(3) The court shall review the amounts requested by the trustee attorney for compensation and reimbursement under
subs. (1) (c) 2. and (2) (c) 2. and shall make a finding as to the reasonableness and necessity of the compensation and expenses before entering the order authorizing their payment.
12.03(4)
(4) Upon a showing that the trustee attorney has completed his or her responsibilities under
sub. (1) or
(2), the court may discharge the trustee attorney.
12.03(5)
(5) A trustee attorney appointed under
sub. (1) (a) or
(2) (a) shall be deemed to be a member of a committee described under SCR 20:8.3 (c).
12.03(6)
(6) A trustee attorney is governed by the same rules of professional conduct applicable to the absent attorney with respect to client matters and files.
12.03(7)
(7) The trustee attorney appointed under
sub. (1) (a) or
(2) (a) shall have his or her own professional liability coverage with a carrier admitted to do insurance business in this state and whose coverage language clearly covers the work of the trustee attorney acting under this section.
12.03(8)
(8) In the event that more than one petition is filed under SCR 22.27 (9) (a) or
sub. (1) or
(2) of this section, the proceedings shall be consolidated and only one trustee attorney shall be appointed.
SCR 12.03 History
History: Sup. Ct. Order No. 93–16, 180 Wis. 2d xxi (1993); Sup. Ct. Order No.
99-03, 2000 WI 106, 237 Wis. 2d xix; Sup. Ct. Order No.
10-07, 2010 WI 119, 328 Wis. 2d xvii.
SCR 12.03 Note
Case Note: A trustee appointed under sub. (2) who obtains and searches client files is engaged in governmental action and must comport with the 4th Amendment. State v. Knight,
2000 WI App 16,
232 Wis. 2d 305,
606 N.W.2d 291.
SCR 12.03 Note
Comment: 1. An agreed-to voluntary suspension is subject to the provisions of SCR 22.26 activities on revocation or suspension of license.
SCR 12.03 Annotation
2. Source, s. 256.286, 1975 stats.
12.04
SCR 12.04 Wisconsin lawyers' fund for client protection: creation and purpose. A Wisconsin Lawyers' Fund for Client Protection of the state bar of Wisconsin is created to reimburse, to the extent and in the manner provided by this chapter, losses caused by the dishonest conduct of members of the state bar of Wisconsin.
SCR 12.04 History
History: Sup. Ct. Order No.
99-03, 2000 WI 106, 237 Wis. 2d xix; Sup. Ct. Order No.
04-02, 2004 WI 117, 272 Wis. 2d xiii; Sup. Ct. Order No.
06-04, 2007 WI 48, 297 Wis. 2d xv.
12.045(1)
(1) "Attorney" means a person who, at the time of the act complained of, was a member of the state bar of Wisconsin, except a person who was an inactive member at that time.
12.045(2)
(2) "Claimant" means a person who has applied to the fund for reimbursement.
12.045(3)
(3) "Client" means a person engaging the professional legal services of an attorney or for whose benefit the attorney is acting in a fiduciary capacity.
12.045(4)
(4) "Committee" means the Wisconsin lawyers' fund for client protection committee.
12.045(5)
(5) "Dishonest conduct" means any of the following:
12.045(5)(a)
(a) A willful act committed by an attorney that causes a reimbursable loss to a client in the manner of defalcation or embezzlement of money.
12.045(5)(b)
(b) The intentional taking or conversion of money, property or other things of value.
12.045(5)(c)
(c) The failure to refund an unearned advanced fee.
12.045(6)
(6) "Fund" means the Wisconsin lawyers' fund for client protection of the state bar of Wisconsin.
12.045(7)(a)(a) "Reimbursable loss" means a loss of money or other property of a client that meets all of the following conditions:
12.045(7)(a)1.
1. The loss was caused by the dishonest conduct of an attorney while performing services under his or her license to practice law in Wisconsin.
12.045(7)(a)2.
2. The attorney was acting either as attorney in the matter out of which the loss arose or in a fiduciary capacity customary to the practice of law.
12.045(7)(a)3.e.
e. Consented to the revocation of his or her license to practice law;
12.045(7)(a)3.h.
h. Been adjudged guilty of a crime based upon the dishonest conduct of the attorney; or
12.045(7)(a)4.
4. The act that occasioned the loss occurred on or after March 1, 1981.
12.045(7)(b)
(b) "Reimbursable loss" does not include any of the following:
12.045(7)(b)1.
1. Losses of a spouse, child, parent, grandparent, sibling, partner, associate, or employee of the attorney or attorneys causing the losses.
12.045(7)(b)2.
2. Losses covered by any bond, surety agreement or insurance contract to the extent covered thereby, including any loss to which any bondsman or surety or insurer is subrogated to the extent of that subrogated interest.
12.045(7)(b)3.
3. Losses of any financial institution that could be recoverable under a "banker's blanket bond" or similar insurance or surety contract, whether or not the institution had such bond or contract in force.
12.045(7)(b)5.
5. Losses barred under any applicable statute of limitations.
12.045(8)
(8) "State bar" means the state bar of Wisconsin.
SCR 12.045 History
History: Sup. Ct. Order No.
06-04, 2007 WI 48, 297 Wis. 2d xv.
12.05
SCR 12.05 Administration. 12.05(1)(1) The fund shall be operated and administered by the committee of the state bar to be known as the Wisconsin lawyers' fund for client protection committee. The committee shall consist of 5 lawyers and 2 nonlawyer members who are appointed by the president of the state bar. The initial terms of the members are: one lawyer to serve until July 1, 1982; one lawyer to serve until July 1, 1983; one lawyer and one nonlawyer member to serve until July 1, 1984; one lawyer to serve until July 1, 1985; one lawyer and one nonlawyer member to serve until July 1, 1986. Upon the expiration of the initial appointments, each subsequent appointment shall be for a term of 5 years. No person who has served a full term of 5 years shall be eligible for reappointment until one year after the termination of his or her last term. A vacancy on the committee shall be filled by appointment by the president of the state bar for the unexpired term.
12.05(2)
(2) Each year the chairperson of the committee shall be appointed by the president of the state bar from among the members of the committee. The committee shall meet from time to time upon the call of the chairperson.
12.05(3)
(3) The committee members shall serve without compensation but shall be entitled to reimbursement from the fund for their expenses reasonably incurred in the performance of their duties.
SCR 12.05 History
History: Sup. Ct. Order No.
99-03, 2000 WI 106, 237 Wis. 2d xix; Sup. Ct. Order No.
04-02, 2004 WI 117, 272 Wis. 2d xiii.
12.06
SCR 12.06 Powers and duties of the committee. 12.06(1)(1)
Consideration of claims. The committee shall consider applications for reimbursement from the fund for losses caused by the dishonest conduct of an attorney. The committee shall investigate claims of losses coming to its attention and may reject or allow claims in whole or in part.
12.06(2)
(2) Committee discretion. The committee may, in its discretion, determine the order and manner of payment of claims. In cases of extreme hardship or if other interests of justice so warrant, the committee may, in its discretion, recognize a claim which would otherwise be excluded under this chapter.
12.06(3)
(3) Rules of procedure. The committee shall adopt rules of procedure not inconsistent with this chapter for the management of the fund and its affairs, for the presentation of claims, for the processing and payment thereof and for the subrogation or assignment to the state bar for the benefit of the fund of the rights of the claimant to the extent paid from the fund.
12.06(4)
(4) Investment. All sums received by the state bar for the fund shall be maintained in a separate account and shall be managed by the state bar pursuant to the provisions of SCR chapter 10 and the state bar bylaws pertaining to the investment and management of state bar assets, subject to the written direction of the committee under rules adopted by the committee.
12.06(5)
(5) Use of funds. The committee may use the fund for any of the following purposes within the scope of the fund's objectives:
12.06(5)(a)
(a) To make payments on claims as provided in this chapter.
12.06(5)(b)
(b) To purchase insurance to cover such payments in whole or in part as is deemed appropriate.
12.06(5)(c)
(c) To pay the reasonable and necessary expenses of the committee and administration of the fund.
12.06(6)
(6) Access to office of lawyer regulation files. Notwithstanding other supreme court rules to the contrary, during the investigation of a claim the committee or its designee shall have access to the files of the office of lawyer regulation which pertain to the alleged loss.
12.06(7)
(7) Audit and report of activities. The fund shall be audited by auditors annually and at such other times as the supreme court shall direct, such audits to be at the expense of the fund. The annual audit shall be included in a report to be submitted annually by the committee to the supreme court reviewing in detail the administration of the fund and the committee's activities during the preceding year.
12.06(8)
(8) Enforcement of claims. The committee may press claims which the state bar may have on behalf of the fund and may pay all reasonable and necessary expenses connected therewith.
SCR 12.06 History
History: Sup. Ct. Order No.
99-03, 2000 WI 106, 237 Wis. 2d xix; Sup. Ct. Order No.
01-12, 2001 WI 120, 247 Wis. 2d xiii.
