Comments on: Dreier LLP scandal https://www.overlawyered.com/2008/12/dreier-llp-scandal/ Chronicling the high cost of our legal system Thu, 11 Dec 2008 19:49:02 +0000 hourly 1 By: Walter Olson https://www.overlawyered.com/2008/12/dreier-llp-scandal/comment-page-1/#comment-36563 Wed, 10 Dec 2008 21:24:48 +0000 http://overlawyered.com/?p=7984#comment-36563 According to its FAQ, the New York Lawyers’ Fund for Client Protection is supported by a mandatory registration fee on lawyers and has paid out upwards of $108 million over the years to wronged clients. The front page of the fund’s site seems to be down, but I found this Google cache. The New York fund affords possible reimbursement of up to $300,000 for client losses that cannot be made up by suing the defaulting lawyer, insurance, etc. That is a substantially higher sum than I believe prevails in most other places, hence my mention of generosity.

This whole area is surely going to be re-examined post-Dreier to see whether stronger protections for clients are needed/feasible, if only for the sake of law firms themselves, which will lose out in many ways if clients or other parties stop feeling relatively safe about leaving moneys in the firms’ hands.

]]> By: BP https://www.overlawyered.com/2008/12/dreier-llp-scandal/comment-page-1/#comment-36561 Wed, 10 Dec 2008 21:14:07 +0000 http://overlawyered.com/?p=7984#comment-36561 “however, New York, where the Dreier firm is headquartered, at last report afforded broader provisions for clients than did most states”

I’m curious about this statement. If a suit against the firm cannot make them whole, where does the money come from? Anyone know more about the broader provisions?

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