NJ Lawyers' Fund Compensates Clients $49,500 for Attorney Misconduct

In Q3 2023, Three New Jersey Lawyers Account for $49,500 in Compensation to Clients

MORRIS COUNTY, NEW JERSEY - The New Jersey Lawyers’ Fund for Client Protection, an initiative financed by the state’s attorneys and judges, has reimbursed clients a total of $49,500 in the third quarter of 2023 due to the misconduct of three lawyers, as revealed by the Board of Trustees.

Established to rectify the misdeeds of a minority of attorneys who face suspension or disbarment for misappropriation, the fund acts on behalf of the upright majority of lawyers in New Jersey. In its 54 years of operation, it has settled claims against a cumulative total of 888 attorneys, with a current count of 99,034 licensed lawyers in the state.

The fund operates under the Supreme Court's decree, aligned with Court Rule 1:28. Comprising seven trustees - five attorneys and two public members - appointed by the court for staggered five-year terms, these individuals receive no compensation. Their primary role is to assess client claims and sanction awards if losses are determined to have stemmed from dishonest legal practices. The fund explicitly deals with cases of attorney dishonesty, while legal malpractices, negligence, and fee disagreements are processed through other judicial channels.

To be eligible for compensation, the targeted attorney must have been an active bar member during the incident. Furthermore, unless deceased, they should have been disbarred, suspended, or convicted of embezzlement or similar misappropriations.

Clients with approved claims can receive up to $400,000. However, claims against a single attorney have an aggregate cap of $1.5 million, unless special permission is sought from the Supreme Court to exceed this amount.

To lodge a claim or gather more information, interested parties can visit the official online portal or get in touch with the New Jersey Lawyers’ Fund for Client Protection located in Trenton, NJ. Michael T. McCormick, the Fund Director, remains open to inquiries about the initiative's objectives and functionality.

In the third quarter, three attorneys were involved:

1. Christopher M. Manganello of Pitman faced six claims, amounting to $22,100 cumulatively. His offenses were primarily related to retaining unearned retainer dishonestly.
2. Anthony W. Orlando from Hoboken was linked to three claims totaling $204,000, largely due to misappropriating deposit monies.
3. David A. Telson from Edison, who passed away earlier this year, had one claim against him, relating to the dishonest retention of an unearned retainer.

Claimants represented by practicing attorneys incur no charges for such representation.