Rule 3. Eligible claims

(a) The loss must be caused by the dishonest conduct of the lawyer and shall have arisen out of and by reason of a lawyer-client relationship. (b) The claim shall have been filed no later than four years after the Claimant knew or should have known of the dishonest conduct of the lawyer. (c) Except as provided in paragraph (d) of this Rule, the following losses are not reimbursable: (1) Losses incurred by spouses, children, parents, grandparents, siblings, partners, associates and employees of lawyer(s) causing the losses; (2) Losses covered by a bond, surety agreement, or insurance contract to the extent covered thereby, including any loss to which any bonding agent, surety or insurer is subrogated, to the extent of that subrogated interest; (3) Losses incurred by any financial institution that are recoverable under a ‘‘banker’s blanket bond’’ or similar commonly available insurance or surety contract; (4) Losses incurred by any business entity controlled by the lawyer(s), or any person or entity described in subparagraphs (c)(1), (2) or (3) of this Rule; (5) Losses incurred by any governmental entity or agency; (6) Losses arising from business or personal investments not arising in the course of the lawyer-client relationship; and (7) Consequential or incidental damages, such as lost interest, or legal fees or other costs incurred in seeking recovery of a loss. (d) In determining whether it would be more appropriate for the Fund or a fund of another jurisdiction to pay a claim, the Committee should consider the following factors: (1) The location of the lawyer’s principal office and other offices; (2) The location where the lawyer-client relationship arose: (3) The domicile or residence of the client; (4) The number of years the lawyer has been licensed in each jurisdiction; (5) The primary location where the legal services were rendered; (6) Whether at the time the legal services were rendered, the lawyer was engaged in the unauthorized practice of law as defined by the jurisdiction in which the legal services were rendered; and (7) Any other significant contacts. (e) The Committee may enter into an agreement with the fund of another jurisdiction to reimburse a portion of the loss suffered by a Claimant whose claim may be eligible for payment under more than one fund. (f) In cases of extreme hardship or special and unusual circumstances, the Committee may, in its discretion and consistent with the purpose of the Fund, recognize a claim that would otherwise be excluded under these Rules. (Added May 16, 2017, effective July 1, 2017.)