Colorado

Civil Procedure

Civil Procedure

Rule 252.10 – Eligible Claims

(a) The loss must be caused by the dishonest conduct of the attorney or, in such circumstance as described below in the death or disability of the attorney, and shall have arisen out of and by reason of an attorney-client relationship or a court-appointed fiduciary relationship between the attorney and the claimant.
(b) The claim shall have been filed no later than three years after the claimant knew or should have known of the dishonest conduct of the attorney.
(c) As used in these rules, “dishonest conduct” means one or more wrongful acts committed by an attorney in the nature of theft or embezzlement of money or the wrongful taking or conversion of money, property or other things of value, including but not limited to:

(1) Refusal to refund unearned fees received in advance as required by Rule 1.16 of the Colorado Rules of Professional Conduct; and
(2) The borrowing of money from a client without intention to repay it, or with disregard of the attorney’s inability or reasonably anticipated inability to repay it.
(d) Except as provided by section (e) of this rule, the following losses shall not be eligible:

(1) Losses incurred by spouses, children, parents, grandparents, siblings, partners, associates and employees of attorney(s) causing the losses;
(2) Losses covered by any bond, surety agreement, or insurance contract to the extent covered thereby, including any loss to which any bonding agent, surety or insurer is subrogated, to the extent of that subrogated interest;
(3) Losses incurred by any financial institution which are recoverable under a “banker’s blanket bond” or similar commonly available insurance or surety contract;
(4) Losses incurred by any business entity controlled by the attorney;
(5) Losses incurred by any governmental entity or agency;
(6) Losses arising from the activities of an attorney not having an office or residence in Colorado where those activities do not have substantial contacts with Colorado; and,
(7) Interest on the loss or any type of consequential damages or punitive damages or costs.
(e) In cases of extreme hardship or special and unusual circumstances, the Board may, in its discretion, recognize a claim which would otherwise be excluded under these rules. The Board may also pay a claim when client funds are no longer in the attorney’s trust account and, due to the attorney’s death or court ordered transfer to disability inactive status, the Board is unable to determine whether the attorney earned the funds or engaged in dishonesty.
(f) In cases in which it appears that there will be unjust enrichment or multiple recovery or the claimant unreasonably or knowingly contributed to the loss, the Board may, in its discretion, deny the claim.

C.R.C.P. 252.10

Source: Added and adopted June 25, 1998, effective January 1, 1999; amended and adopted October 4, 2018, effective October 4, 2018.