NEMRA Legal Defense Fund

The NEMRA Legal Defense Fund is intended to protect participants against those normally un-reimbursed legal expenses that can be incurred by a representative if and when the representative is named as a defendant in a product liability lawsuit. Those expenses can include attorney legal fees, or legal costs and disbursements incurred by the participant in the initial stages of the legal proceedings.
 

Questions and Answers

No. The fund will not pay judgments or settlements of product liability claims, nor can it be used to contribute to a settlement or judgment obtained in the legal proceedings. It is intended to reimburse participants for legal expenses incurred in defending themselves or their companies when named as defendants in a suit.

Yes. The maximum recoverable in any action or actions involving basically the same product liability situation is $12,500.

If a participant is named in a product liability lawsuit as a defendant and is required to retain the services of an attorney, the participant must immediately notify NEMRA headquarters. If necessary, NEMRA counsel can assist in retaining experienced counsel. Legal bills rendered thereafter by retained counsel must be itemized with the hourly charges, costs and disbursements specifically stated. After the charges are approved for payment by the fund, the participant will make and furnish the fund with evidence of the payments. Immediately thereafter the participant will be reimbursed by the fund.

Two participants have been named as trustees, and NEMRA counsel will serve as the third trustee. They will see to it that the fund is prudently managed and that claims made against it are fairly and swiftly handled. In order to assure that claims presented fairly reflect the time and value of the legal services rendered, all claims will be reviewed by NEMRA counsel.

Each member of the association pays a one-time fee of $500 to join the NEMRA Legal Defense Fund.

No. The trustees report the details of any claims paid to the NEMRA Board of Directors at their annual meeting, following a meeting of the trustees. However, the names of the parties involved are not disclosed.

Yes. Claims arising from transactions occurring prior to the effective date of the fund, or the effective date of the member's admission to the fund, are excluded, as are claims involving situations where the rep has altered or modified the product involved.

You can withdraw from the fund at any time, but there will be no refund if you elect to withdraw voluntarily. If you resign your membership in NEMRA, that will be considered a voluntary withdrawal from the fund as the Legal Defense Fund is open only to NEMRA members in good standing in the association.

The fund will undoubtedly have legal and accounting expenses. In addition, the association headquarters will charge the fund for postage and other direct expenses, or for travel expenses incurred in fund business, or for expenses incurred in publicizing or promoting the fund to NEMRA members. All such expenses will be itemized in the trustees report.

If the trustees disallow all or a portion of a claim made against it, the participant shall have a period of 30 days from the date of such rejection to appeal the trustee's decision. If an appeal is filed, a hearing shall be held at a mutually convenient location within 60 days thereafter, at which time a member of the Executive Committee shall serve as a hearing officer. The hearing officer's decision on the matter shall be final.

There is a formal Legal Trust Agreement which is signed by the association and the trustees and is on file at NEMRA headquarters. When necessary, the trustees will, from time to time, issue new rules or regulations governing the operation of the fund. Participants will receive notice of any changes or additions to the rules.

The NEMRA Legal Defense Fund went into operation on August 1, 1979