Client Security Fund

 
Client Security Fund COVID-19 Update

What is the Client Security Fund?

This is a discretionary fund that can reimburse clients who have lost money or property due to theft or dishonest conduct by a California lawyer. It is a State Bar program paid for entirely by California lawyers.

What losses qualify?

The Fund can reimburse up to $100,000, depending on when the loss occurred. It does not reimburse a loss if the lawyer acted incompetently or failed to take a certain action.

Typical losses include:

• Theft of personal injury settlement funds or other funds entrusted to the lawyer,
• Failure to refund fees when the lawyer performed no services,
• Borrowing money from a client without the intention or the ability to repay it, and
• Obtaining money or property from a client by saying it would be used for investment purposes when no investment is made.

The Fund does not reimburse interest, expenses or incidental or consequential losses caused by the attorney, such as fees paid to another attorney or damages caused by the attorney’s malpractice, negligence or incompetence. You must show that the attorney received the money or property.

Who can apply?

If you meet the criteria, you can file an application for reimbursement. You do not have to be a United States citizen to apply.

However, there are certain exclusions: If you are the lawyer’s spouse, close relative, or business partner; or employer or employee of a business controlled by the lawyer, the Fund cannot reimburse you. The Fund cannot reimburse for losses suffered by government entities or agencies.

Who decides whether an application will be paid?

The Client Security Fund Commission administers the Client Security Fund and is supported by legal counsel who issue decisions on behalf of the Commission. The Commission is made up of five volunteers – three lawyers and two nonlawyer public members – appointed by the State Bar’s Board of Trustees. The Fund determines if your application qualifies for reimbursement and whether all or part of the application will be paid.

How can I apply?

You must fill out an application form or you obtain a paper copy by writing or calling:

The State Bar of California
Client Security Fund
845 South Figueroa Street
Los Angeles, CA 90017-2515
213-765-1140
clientsecurityfund@calbar.ca.gov

Filing an application is free. You do not need a lawyer to apply.

What other steps should I take?

The filing of a CSF application does not stop any statute of limitations from running so you should continue to explore other remedies available to you.

If you have not already done so, you need to file a discipline complaint against the lawyer. The online complaint form is available on the State Bar website in English, Spanish, Vietnamese, Korean, Russian, and Chinese. You may also write or call toll-free:

The State Bar of California
Intake Unit
845 South Figueroa Street
Los Angeles, CA 90017-2515
800-843-9053