Rule III Processing applications

A. A copy of the application, return receipt requested, shall be sent by registered or certified mail to the attorney allegedly causing the loss, along with written notice of that attorney’s right to answer or respond to the claim in writing within a period of 20 days from the date of the notice and the right of the attorney, within the same 20 days, to demand a hearing on the claim. The Chairman or the designated member of the Committee shall cause each application to be sent to a member of the Committee or other member of the State Bar of Wyoming for investigation and report. Wherever possible, the member to whom such claim is referred shall practice in the county wherein the alleged defalcating attorney practiced. From time to time, the designated member may request of the applicant further information with respect to the alleged claim. Such member shall be reimbursed for reasonable out-of-pocket expenses incurred in making such investigation. B. When, in the opinion of the member to whom application had been referred the claim is clearly not for a reimbursable loss, no further investigation need be conducted, but a report with respect to such claim shall be made by the member to whom the client was referred, as hereafter specified. C. A member to whom a report is referred for investigation shall conduct such investigation as seems necessary and desirable, in order to determine whether the same is for a reimbursable loss and in order to guide the Committee in determining the extent, if any, to which the claim shall be reimbursed from the Fund. The Board of Commissioners of the State Bar shall allow such member to have access, during such investigation, to the Board of Commissioners’ files and records, if any, pertaining to the alleged loss. Any information obtained by the member from the Board of Commissioners’ files shall be used solely by and for the Clients’ Security Fund Committee, but otherwise shall constitute confidential information. D. Reports with respect to claims shall be submitted by the members to whom they have been referred for investigation to the Chairman of the Committee by July first each year. The Chairman shall summarize each report in such detail as seems necessary and shall send to each member of the Committee a copy of such summary wherever possible by August 1 in each year. E. No claim with respect to which an inadequate opportunity for investigation has been afforded, need be considered by the Committee for reimbursement in the year in which such claim is presented. F. The Committee will consider evidence presented by the claimant and by the attorney allegedly causing the loss. A hearing will be held only if requested by a member of the Committee or by the attorney allegedly causing the loss or the attorney’s personal representative. In the discretion of the Committee, the hearing may be held before the full Committee or before the reporting member. The hearing may be held in person or by telephone. Absent a request for hearing under this rule, claims shall be processed on the basis of the information provided in writing by the claimant and the attorney allegedly causing the loss and on the report of the member who investigated the claim. G. The Committee, in its sole discretion, shall determine the amount of loss, if any, for which any client shall be reimbursed from the Fund. In making such determination, the Committee shall consider, inter alia, the following: 1. The negligence, if any, of the client which contributed to the loss. 2. The comparative hardship the client has suffered by the loss. 3. The total amount of reimbursable losses of the client of any one lawyer or association of lawyers. 4. The total amount of reimbursable losses in previous years for which total reimbursement has not been made and the total assets of the Fund. 5. The Committee may, in its sole discretion, allow further reimbursement in any year of a reimbursable loss allowed by it in prior years with respect to a loss which has not been fully reimbursed; provided such further reimbursement would not be inconsistent or in conflict with any previous determination with respect to such a loss. 6. No reimbursement shall be made to any client unless said reimbursement is approved by a majority vote of the Committee at a duly held meeting at which a quorum is present.