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South Carolina
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2016-09-28-02

The Supreme Court of South Carolina

Amendment to Rule 31(g) and (h) of the Rules for Lawyer Disciplinary Enforcement, Rule 413, SCACR

Appellate Case No. 2015-001286


ORDER


Pursuant to Article V, § 4, of the South Carolina Constitution, Rule 31(g) and (h) of the Rules for Lawyer Disciplinary Enforcement (RLDE) contained in Rule 413 of the South Carolina Appellate Court Rules (SCACR) are amended to read as follows:

(g) Termination of Receivership. When the provisions of (d) above and the order of receivership have been complied with, the receiver shall apply to the Supreme Court for termination of the receivership. The application shall contain the written releases of clients to whom files and other property were returned, information regarding the efforts made to contact the lawyer's remaining clients, an inventory of the files and other property remaining in the receiver's possession, an itemized account of the expenses incurred in carrying out the order of receivership, and documentation of time spent by the receiver and the receiver's staff in carrying out the order of receivership.  The Supreme Court may order the lawyer to reimburse the receiver for expenses incurred and time spent in carrying out the order of receivership. Expenses and fees for the receiver and the receiver's staff time which are approved and awarded by the Supreme Court shall be paid from funds remaining in the lawyer's accounts.  If either no such funds exist or the remaining funds are insufficient, the Supreme Court may direct that payment be made from the Lawyers' Fund for Client Protection.  If the receiver's expenses or fees are paid by the Lawyers' Fund for Client Protection, the Supreme Court may order the lawyer to reimburse that Fund.

(h) Appointment of Attorneys to Assist the Receiver.  Upon petition of the receiver, the Supreme Court may appoint members of the South Carolina Bar as needed to assist the receiver in performing duties under this rule.  With the exception of reasonable and necessary expenses, such as postage, telephone bills, copies, supplies and the cost of publishing legal notice in the newspaper, an appointed attorney shall serve without compensation as a service to the legal profession.  However, the Supreme Court may order that the appointed attorney be reimbursed a reasonable amount for other expenses, such as the appointed attorney's time or the time of support staff, when it determines that extraordinary time and services were necessary for the completion of the required duties or when the appointment has worked a substantial hardship on the appointed attorney's practice. The Supreme Court shall determine the reasonableness of necessary expenses and other expenses.  Expenses which are approved and awarded by the Supreme Court shall be paid from funds remaining in the lawyer's accounts.  If either no such funds exist or the remaining funds are insufficient, the Supreme Court may direct that payment be made from the Lawyers' Fund for Client Protection.  If the appointed attorney's expenses are paid by the Lawyers' Fund for Client Protection, the Supreme Court may order the lawyer to reimburse that Fund. 

This amendment is effective immediately.

s/Costa M. Pleicones                       C.J.

s/Donald W. Beatty                             J.

s/John W. Kittredge                             J.

s/Kaye G. Hearn                                  J.

s/John Cannon Few                             J.


Columbia, South Carolina
September 28, 2016