Here's a little-known way to get money back from a bad lawyer

Ray Bedell, a retired Phoenix electrician, had borrowed and scraped together more than $5,000 to hire an attorney in a family court case so he could spend more time with his daughter.

The lawyer seemed smart, aggressive and talented in the courtroom, Bedell remembered.

But a year into the case, Kristi Michelle Morley seemed to disappear, he said. An important court date was just six days away, and the attorney wouldn't answer his calls.

"Out of nowhere, she falls off the face of the Earth," Bedell, 56, said. "I'm trying to reach out to her, and I can't get a response."

Bedell wasn't the only client whom Morley ghosted.

The lawyer left other cases up in the air, causing disastrous legal and financial consequences for clients, a State Bar of Arizona investigation found. The attorney blamed medical issues, but appeared well enough to go on motorcycle rides, the Bar found. 

The Republic could not find contact information to ask Morley for comment.

Bedell figured his money had disappeared along with her.

But then he learned of a State Bar program that refunds clients of dishonest lawyers up to $100,000 per victim. The average payment per person was about $7,000 last year.

Examples of Client Protection Fund cases include:

• An attorney fails to perform work a client paid for and refuses to issue a refund.
• An attorney improperly keeps part or all of a lawsuit settlement or award.
• An attorney lies, which causes a client financial harm. 
• An attorney dies in the middle of a case and doesn't leave money to reimburse clients.

Lawyers accused of these actions don't always have bad intentions, Bar officials said. Some may experience mental health issues, addictions or other life turns that could happen to anybody. But the behavior still does damage.

Bedell couldn't believe the program existed, he said. 

"Thank God it's there," he said.

Bedell submitted a claim. In September the Client Protection Fund sent him a $5,500 check.

It even included refunding fees to a hypnotist Bedell's attorney puzzlingly had required him to see.

"I got it all back to the penny," Bedell said. "It's like Santa Claus times 10."

Client Protection Fund payments don't come quickly, the Bar acknowledges. Bedell's case took two and a half years, when counting the time it took for his attorney to be investigated and disciplined. 

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The process requires clients to submit documentation, a chance for accused attorneys to provide responses, and Client Protection Fund employees to conduct an independent investigation. 

The process can be delayed further if the attorney has not yet been disciplined by the Bar. The fund requires disciplinary action, such as license suspension or disbarment, to occur before approving any refunds.

The final step is a vote by a board of volunteer attorneys that meets once a quarter on whether and how much money to award. The board didn't vote on Bedell's case for six months because of a case backlog, he said.

But Bedell commended the thoroughness of the process.

"They checked every receipt," he said. "You have to have your ducks in a row. They're not giving away free money, nor should they."

Bedell also praised the legal profession for serving as its own watchdog.

The money doled out to victims comes from yearly dues paid by Arizona's more than 24,000 licensed lawyers.

"It gives consumers some recourse when there is a bad apple in the bunch," Client Protection Fund board member Jim Penny said. "It's all the lawyers in the state who are pooling the resources together to help them."

Even if the process isn't speedy, Bedell encouraged other victims to apply for compensation.

"If you have been wronged like that, absolutely reach out and see what they can do for you," he said.

Bedell's own case ended up going his way.

His former attorney was disbarred. And Bedell was able to increase time spent with his daughter.

"God is good," he said.

How can I get money if a lawyer stole from me?

1. Call the State Bar of Arizona to explain your case and ask if you may be eligible to apply to the Client Protection Fund. Call 602-340-7280 within Maricopa County or 800-319-0514, extension 7280, everywhere else.
2. Fill out an application on the State Bar of Arizona website. Forms are available in English and in Spanish.
3. Cooperate as necessary with the fund investigator, staff and board.
4. Wait for the fund board to vote on your claim.

Who can receive money from the Client Protection Fund?

• Individuals who have hired the lawyer or have a fiduciary relationship with the lawyer, such as guardianship.
• Small businesses that have hired the lawyer or have a fiduciary relationship with the lawyer, such as guardianship.

Who is not eligible to receive money?

• The current or former spouse, child, parent, grandchild, grandparent or sibling of the lawyer.
• Partners, associates, co-shareholders or employees of the lawyer.
• Governments.
• Most businesses, such as corporations, bonding agencies, medical providers, companies controlled by the lawyer or other third parties with claims against the lawyer.

What are the requirements of the lawyer?

• The lawyer must have been licensed or authorized to practice law in Arizona.
• The lawyer must have been disciplined with a suspension for longer than six months, interim suspension, disbarment or a felony conviction related to the claim. If none of these apply, the lawyer must have been transferred to disability inactive status or have died.
• The client's financial loss must have been caused by the lawyer's dishonest conduct.

How soon must I file a claim?

• Your claim must be filed within five years from the time you knew, or should have known, of the lawyer's dishonest conduct.

How long will it take to receive a check?

• The process can take a year or longer.

How much money can I get?

• The limit per person is $100,000.
• The limit of total claims against one lawyer is $250,000.

What types of behavior by the lawyer qualify?

• Wrongful acts such as theft or embezzlement of money.
• The wrongful taking or conversion of money, property or other things of value.
• Refusal to refund fees when the lawyer performed little to no work.
• A lawyer's intentional dishonest or deceitful conduct that leads to the loss of money or property.

What types of claims are not eligible?

• Claims based on a lawyer's negligence, incompetence, or malpractice.
• Disputes about fees if the lawyer performed a significant amount of work.
• Money you gave to a lawyer for an investment, loan or any other purpose that did not arise from a lawyer-client relationship.
• Requests for reimbursement for interest, legal fees paid to other lawyers, damages, or other expenses.

What if my claim is denied?

• You will be notified in writing and can request reconsideration. A second denial is final.

How can I get more information?

• Call the State Bar of Arizona at 602-340-7280 within Maricopa County or 800-319-0514, extension 7280, everywhere else. 
• Visit the State Bar of Arizona website.

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