Colorado

Civil Procedure

Civil Procedure

Rule 252.14 – Restitution and Subrogation

(a) An attorney whose dishonest conduct results in payment to a claimant shall be liable to the Fund for restitution; and the Board may bring such action as it deems advisable to enforce such obligation, including costs of such action.
(b) As a condition of payment, a claimant shall be required to provide the fund with a transfer of the claimant’s rights up to the amount paid by the Fund against the attorney, the attorney’s legal representative, estate or assigns; and of the claimant’s rights against any third party or entity who may be liable for the claimant’s loss.
(c) Upon commencement of an action by the Board as subrogee or assignee of a claim, it shall advise the claimant, who may then join in such action to recover the claimant’s unpaid losses.
(d) In the event that the claimant commences an action to recover unpaid losses against the attorney or another entity who may be liable for the claimant’s loss, the claimant shall be required to notify the Board of such action.
(e) The claimant shall be required to agree to cooperate in all efforts that the Board undertakes to achieve restitution for the Fund.

C.R.C.P. 252.14

Source: Added and adopted June 25, 1998, effective January 1, 1999.

Annotation Ratification of unauthorized action. Claimant’s acceptance of moneys from the fund does not constitute ratification of his attorney’s unauthorized settlement with a third party if claimant was not aware of the consequences of accepting the fund moneys. Siener v. Zeff, 194 P.3d 467 (Colo. App. 2008).