(a) Purpose. The purpose of the Client Protection Fund is to maintain the integrity and protect the good name of the legal profession by reimbursing, to the extent authorized by these Rules and deemed proper and reasonable by the trustees of the Fund, losses caused by defalcations by members of the Bar of Maryland or out-of-state attorneys authorized to practice in this State under Rule 19-215 or 19-216, acting either as attorneys or, except to the extent they are bonded, as fiduciaries.

(b) Fiduciary; Definition. For purposes of this Rule, “fiduciary” means an attorney acting in a fiduciary capacity that is traditional and customary in the practice of law in Maryland, such as a personal representative of a probate estate, a trustee of an express trust, a guardian, a custodian acting pursuant to statute, or an attorney-in-fact by written appointment.

Cross reference: Regulations of the Client Protection Fund of the Bar of Maryland, subsection (a)(1).

(c) Fiduciary Relationship Not Formed. A fiduciary relationship is not formed between an attorney and a third party who has been assigned an interest in the proceeds of a civil award or settlement, including attorneys' fees, in consideration for the advancement of funds by the third party to the attorney or client.

Committee note: For purposes of this Rule, a fiduciary relationship is not formed between an attorney and a lawsuit cash advance lending company. Section (c) is not intended to apply to medical, healthcare, or other service providers that may be owed money for services rendered.

Source: This Rule is derived from former Rule 16-811.2 (2016).