10 Things you need to know about Compensation Fund Department, Bar Council
Suffering from financial loss due to the lawyer’s dishonesty? Client now can seek compensation from the Malaysian Bar Council in the form of a grant from the Advocates and Solicitors Compensation Fund which comes into existence in 1978 whereby it serves a purpose to safeguard the reputation of the legal profession.Read below as your guide.
1. By virtue of S 80 (8) Legal Profession Act 1978, a claim may be entertained provided that all necessary procedures and conditions are complied with. i.e before a client is able to submit a claim, it is important to note that the lawyer concerned must be first struck off the roll.
2. A claim for compensation can be applied by the client as a result of the misappropriation of money or money held by the lawyer in his capacity as a stakeholder.However, one must take note that claim for compensation due to the negligence of his lawyer will not be entertained.
3. From the date the Bar Council published a notice of a list of disbarred lawyers on the nation daililies, affected claimant will have to make a claim within 21 days from the publication. Take note that the application for compensation can also be made within 6 months or a period not exceeding 2 years upon discovery of the alleged financial loss.
4. There are 2 forms to be submitted i.e Form A and B whereby it can be downloaded from www.Malaysianbar.org.my or taken from the Bar Council Secretariat.
5. Form A-to be used to report of a financial loss caused as a result of breach of trust by member of Bar Council (the said lawyer) while Form B- to be used to apply for compensation by providing full details of the claim with supporting documents attached.Take note that the claimant will have to submit a certified true copy of a police report against the lawyer, RM 100 cheque or a postal order (administrative fee), a photocopy of his/her identity card or passport and any other supporting evidences relating to the claim.
6. An adjudication panel, consisting of senior lawyers will sit in to review the application before the claimant attend to the hearing together with the witnesses (if any) and it is a must to produce the original documents at the hearing. Panel will then submit a written report with recommendation whether the claim succeed and approved in part or in full or vice versa. However, it is the Bar Council to have the final say.
7. The claim for the compensation may take up to a year or longer subject to the complexity and nature of the case. Take note that any claim against the lawyer’s due to his negligence nor does it consider any claim to recover payments made to lawyers as legal fees.
8. It shall be noted that all the necessary documents must be in order (failure to produce will be fatal and your claim will be struck off) to be submitted to the following:-
Compensation Fund Department (Jabatan Dana Pampasan) Bar Council Malaysia,No.15, Leboh Pasar Besar, 50050 Kuala Lumpur
Any further inquiries, one may contact the officer on duty at the Compensation Fund Department at 03-20313003 or email to compensation@malaysianbar.org.my.
9. There is no restriction as to the number claims made provided that the fund is having enough funding. The funding is accrued from the yearly contribution made by the members of Bar Council.
10. In UK, by virtue of Solicitors Regulation Authority with regards to the similar claims, it does not only cover claims due to lawyer’s dishonesty, but also due to his failure to account for money received and the claimant may not necessarily be a client of former client. In the US, all lawyers are required to pay a biennial registration fee of about US$375 to the government-mandated client compensation fund.
