Rule 17A-016 - Restitution and subrogationA.Restitution. A lawyer whose dishonest conduct results in reimbursement to a claimant shall be liable to the fund for restitution; and the commission may bring such action as it deems advisable to enforce such obligation.B.Disciplinary action. A lawyer whose dishonest conduct has resulted in reimbursement from the fund to a claimant shall make restitution to the fund including interest and the expense incurred by the fund in processing the claim. A lawyer's failure to make satisfactory arrangement for restitution shall be cause for suspension, disbarment or denial of an application for reinstatement.C.Rights assigned. As a condition of reimbursement, and to the extent of the reimbursement provided by the fund, a claimant shall be required to provide the fund with a transfer of the claimant's rights against the lawyer, the lawyer'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.D.Judicial action. Upon commencement of an action by the commission as subrogee or assignee of a claim, it shall advise the claimant, who may then join in such action to recover the claimant's unreimbursed losses.E.Notice of other proceedings. In the event that the claimant commences an action to recover unreimbursed losses against the lawyer or another entity that may be liable for the claimant's loss, the claimant shall be required to notify the commission of such action. F.Cooperation. The claimant shall be required to agree to cooperate in all efforts that the commission undertakes to achieve restitution for the fund and to repay the fund if claimant is subsequently reimbursed from another source in an amount that exceeds the difference between the principal misappropriated and the fund award. Such repayment shall not exceed the amount of the fund award.N.M. R. Gov. Client. Prot. Fund 17A-016
Approved by Supreme Court Order 05-8300-25, effective 12/13/2005.