Luz Legal Refunds: What Former Clients Should Know
The firm announced its closure on June 10, 2026 and says it is reviewing refunds internally — and that cases "already filed" may not be refund-eligible. Colorado and Washington rules treat that question very differently. Here is what the rules actually say.
What this page is — and is not. Novo Legal does not handle refund or restitution claims. This page is general information about how attorney-fee refunds work under Colorado and Washington professional-conduct rules, so you can ask the right questions. What we offer former Luz Legal clients is a free case-review consultation about your immigration case itself.
What the Firm’s Closure Notice Says About Refunds
On June 10, 2026, La Luz del Camino Legal published a closure notice to clients. On the subject of refunds, the notice states that:
- The firm is reviewing all cases internally to determine whether a refund is appropriate.
- Refund requests can be submitted through the firm’s website, and each request will be reviewed individually.
- Clients whose cases have already been filed "may not be entitled to a refund."
- The firm asks clients for patience while this process runs.
That last statement — filed means maybe no refund — is the firm’s characterization, not a rule of law. Whether any portion of a fee must be returned depends on the professional-conduct rules of the state that governs your fee agreement, and on what work was actually performed. The two states involved answer that question differently.
Colorado vs. Washington: Two Different Rulebooks
Former clients of the firm signed fee agreements at different times and through different offices. Which state’s rules govern a given agreement depends on the agreement itself and where the work was done — not simply on where you live.
Colorado: nonrefundable fees are prohibited
- "Nonrefundable" fees and retainers are not allowed. Colorado’s professional-conduct rules prohibit nonrefundable fees and nonrefundable retainers, and also prohibit fee agreements that unreasonably restrict a client’s right to seek a refund of unearned fees.
- Advance payments belong to the client until earned. Under Colorado’s rules, a fee is earned only as the lawyer performs the work or confers a benefit. Until then, the money remains the client’s property.
- Unearned fees must be refunded when representation ends. When a representation terminates — including because a firm closes — Colorado requires the lawyer to refund any advance payment of fees or expenses that has not been earned or incurred.
- The Colorado Supreme Court has said so directly. It has held that advance fees belong to the client until the lawyer earns them — and that labeling a fee "non-refundable" does not make it so.
- Flat fees are typically earned in stages. Colorado contemplates written flat-fee agreements that earn the fee at defined milestones. Filing a case is usually one milestone among several — not the end of the work.
Washington: earned-on-receipt is possible, but refund rights survive
- The same basic refund duty applies. Washington, like Colorado, requires a lawyer to refund advance fees that have not been earned when representation ends.
- Flat fees can be the lawyer’s property on receipt — only under strict conditions. Washington permits a written flat-fee agreement to treat the fee as earned on receipt, but only if the client signs a writing that includes a required notice that the client may be entitled to a refund of a portion of the fee if the agreed-upon legal services are not completed.
- Without that compliant writing, advance payments are presumed to be client funds that must be held in trust.
Which rules govern you? Which state’s rules apply to your fee agreement depends on where the work was done and what your agreement says — not simply on where you live. A Colorado resident may have signed an agreement governed by Washington’s rules, or the reverse. Because Colorado’s rules are generally more protective on refunds, this distinction can change the answer, and a licensed attorney would look at your specific agreement to determine which rules govern.
Unsure where your immigration case stands after the closure?
The refund question is separate from your case itself. We offer former Luz Legal clients a free case-review consultation — in Spanish, in person or by video.
CALL US IN SPANISH — (888) 746-5245Frequently Asked Questions
My case was already filed — does that mean I can’t get a refund?
Under Colorado’s rules of professional conduct, filing your case is not the test for whether a fee was earned. A fee is earned only as the lawyer actually performs the work — and Colorado prohibits "nonrefundable" fees outright and treats advance fees as the client’s property until they are earned. Filing is usually just one step in a case that also includes responding to government requests, interviews, and hearings. If a firm closes before finishing that work, the part of the fee tied to the unfinished work has generally not been earned. That does not mean every client is automatically owed a full refund — a firm may keep the portion it actually earned — and the answer depends on your specific written fee agreement and which state’s rules govern it. This is a question for a licensed attorney reviewing your agreement.
Which state’s rules apply to my fee agreement?
Which state’s rules apply to your fee agreement depends on where the work was done and what your agreement says — not simply on where you live. A Colorado resident may have signed an agreement governed by Washington’s rules, or the reverse. Because Colorado’s rules are generally more protective on refunds, this distinction can change the answer, and a licensed attorney would look at your specific agreement to determine which rules govern.
What is a Client Protection Fund, and can it help me?
Both states maintain funds that can reimburse clients who lost money to attorney dishonesty. In Colorado, the Attorneys’ Fund for Client Protection, administered through the Office of Attorney Regulation Counsel, can consider claims involving a refusal to refund unearned fees; it is a remedy of last resort, filing is free, the process generally begins with a disciplinary complaint, and no attorney may charge you a fee to help you file. In Washington, the WSBA Client Protection Fund covers losses caused by attorney dishonesty, which includes refusal to refund unearned fees; its payments are gratuitous and discretionary — there is no legal right to payment. A good-faith disagreement about how much was earned is a fee dispute, which these funds generally do not cover. In Colorado, the fund currently caps payments at $50,000 per claim and $100,000 in total for all claims against a single attorney, and a claim must be filed within three years of when you knew or should have known of the dishonest conduct. In Washington, the maximum gift on any one application is $150,000 — there is no aggregate per-attorney limit — and applications are generally due within three years of when the loss was or reasonably should have been discovered, though the board may waive that deadline for good cause. These figures can change — confirm the current ones directly with the fund. Whether any particular situation qualifies is decided by the fund and the disciplinary authority, not by us. Novo Legal does not handle these claims or file them for you.
How do I actually request a refund from the firm?
According to the firm’s June 10, 2026 closure notice, it is reviewing all cases internally to determine whether refunds are appropriate, and refund requests can be submitted through its website. Practical steps people in this situation commonly take: keep a complete copy of your fee agreement, payment receipts, and any correspondence; submit the request in writing and keep proof; and remember that the firm’s request for patience does not pause any deadline in your immigration case — those continue to run. Separately, the federal civil lawsuit described at lozanocivilaction.com is the vehicle the plaintiffs’ legal team is using to seek financial recovery, and the state disciplinary authorities have their own processes.
Can Novo Legal handle my refund claim?
No. Novo Legal does not handle refund or restitution claims, and nothing on this page is a promise about what any client will recover. What we offer former Luz Legal clients is different: a free case-review consultation about the immigration case itself — where it stands, what deadlines are coming, and what a reasonable next step looks like. If you want that review, call (888) 746-5245.
Other Resources
- luzlegal.com/aviso-importante — The firm’s own June 10, 2026 closure notice (Spanish and English), including its statements on refunds and how to submit a request.
- Colorado Attorneys’ Fund for Client Protection — Information from Colorado’s attorney-regulation system on the fund and how claims work.
- WSBA Client Protection Fund — The Washington State Bar Association’s information on its fund.
- lozanocivilaction.com — The plaintiff team’s hub for the pending federal civil action. If your primary concern is financial recovery, start here — not with us.
- Free case review for former clients — Our main page for former clients of the firm, updated for the closure announcement.