Model Rules for Lawyers' Funds for Client Protection - Rule 17

Rule 17 - Judicial Relief

1. The Board may make application to the appropriate court for relief to protect the interests of claimants or the Fund where:
   1. the assets of clients appear to be in danger of misappropriation or loss, or to secure the claimant's or Fund's rights to restitution or subrogation; or
   2. the lawyer disciplinary agency has failed to exercise jurisdiction.
2. A court's jurisdiction in such proceedings shall include the authority to appoint and compensate custodial receivers to conserve the assets and practices of disciplined, missing, incapacitated and deceased lawyers.

Comment

Occasionally a situation arises in which the protection of clients and the Fund requires the appointment of a custodial receiver to wind down the practice and to preserve assets. Rule 17 makes explicit the Board’s authority to seek just such a remedy as is available under state law. It is anticipated that the Rule would be adapted to seeking equitable remedies in each jurisdiction.

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