Frequently Asked Questions
The frequently asked questions (FAQs) are general information to help members of the public to understand the purpose and operations of the State Bar of Michigan Client Protection Fund (Fund). They are not legal advice. The Client Protection Fund (CPF) Department staff cannot give legal advice. If you need legal advice, please consult with an attorney. If you need assistance to find an attorney, you may contact the State Bar’s Lawyer Referral Service or use the search feature of the online member directory available here.
Applying for Your Claim, Basic Information
Claim Application Process
About the Client Protection Fund
Commonly Used Terms
How do I submit a CPF claim?
A claimant must complete and submit the CPF application form.
Application forms and other information are available on the Client Protection Fund homepage or from the State Bar Client Protection Fund Department. Questions and completed applications should be emailed to cpf@michbar.org or mailed to:
State Bar of Michigan
Client Protection Fund
306 Townsend St.
Lansing, MI 48993-2012
Phone (800) 968-1442
Who can submit a CPF claim?
Anyone who has lost money due to a lawyer’s dishonest conduct as defined by CPF Rule 7(A) can apply for reimbursement. Typical claimants include:
- The client.
- A third-party who paid for legal service. For example, if a parent pays for legal services for their child, the parent would be the claimant.
- The Personal Representative (sometimes called the executor) on behalf of an Estate, a Conservator on behalf of a Conservatorship Estate, or a Trustee on behalf of a Trust. Beneficiaries are generally not considered claimants.
A claimant does not have to be a United States citizen or live in Michigan. However, the Fund will not reimburse:
- the spouse or close relative of the respondent attorney;
- a business partner, employer, or employee of the respondent attorney or a business controlled by the respondent attorney; or
- a government entity or agency.
Is there a fee for submitting a claim?
No.
Do I need an attorney to submit a claim?
No, you do not need an attorney to complete or submit the CPF claim application. The CPF Department has staff that will investigate the facts and request information, if needed, to support the claim.
Should you choose to have an attorney to assist you, attorneys are encouraged to assist Claimants without a fee, but may charge up to $250 unless more is authorized by the State Bar of Michigan’s Board of Commissioners.
If you are required to pursue a bank, credit card company, or attorney for recovery, CPF Department staff has contact information for attorneys who regularly handle similar cases. You can also find attorneys via the State Bar of Michigan’s Lawyer Referral Service.
What are examples of CPF claims that are eligible for reimbursement?
Typical losses covered include an attorney accepting a refundable retainer and not completing the legal services and the theft of money from estates, trusts, settlements, or investment transactions. For more detail, please see Claims Examples.
What types of claims are not eligible for reimbursement from the fund?
Claims for legal malpractice; negligence; fee disputes; law office expenses such as process server expenses; lost wages; medical bills or similar expenses; and cases in which the attorney settled the case for less than you believe it was worth, are not reimbursed.
Will the Fund reimburse me if my attorney did a bad job or made a mistake?
No. The Fund only reimburses clients when the respondent attorney has committed a dishonest act, such as theft or embezzlement as specifically defined by the CPF Rule 7(A).
If the attorney made a mistake regarding your legal matter, you may be able to sue the respondent attorney in civil court for your losses or file a claim with the attorney’s malpractice insurance carrier if the attorney had malpractice insurance.
If you need assistance finding an attorney regarding your legal rights you can contact the State Bar of Michigan’s Lawyer Referral Service.
If I submit a CPF claim, will I be reimbursed?
All eligible claims are investigated by the Client Protection Fund, and the findings of that investigation determine whether a claimant will be reimbursed. Submission of a claim does not mean that you will automatically receive reimbursement or that reimbursement will be in the amount you requested.
Are there limits on how much can be reimbursed?
The Fund does not reimburse more than $150,000 to one claimant or more than $375,000 for all claims against one individual respondent attorney.
- No more than $150,000 can be paid per claimant or group of claimants with common interest in the reimbursement
- No more than $375,000 can be paid for all losses caused by an attorney or group of attorneys acting together
- If there are multiple claims against a single lawyer that exceed the maximum amount the Fund can pay out, the Fund may pay each claimant only a percentage of their actual loss.
- The Fund does not reimburse any related additional losses or damages, like interest, fees paid to another attorney to represent the claimant against the respondent attorney or to assist with the Client Protection Fund application, or penalties for late payment of taxes. The Fund does not reimburse the potential settlement or judgment value that you may have received if your original case was handled properly.
If my claim is approved, how long will it take to receive reimbursement?
After the investigation process, which can take up to three years, and the board meets and considers your claim, it can take up to two (2) weeks to receive a subrogation agreement, which gives to the State Bar of Michigan the claimant’s right to collect from the respondent attorney. Once the notarized subrogation agreement is received by the Fund, it can take up to three (3) weeks to issue reimbursement.
Claimants are given the option for reimbursement by check sent certified mail or direct deposit. If your claim is approved for reimbursement, you will receive a Questionnaire after the Standing Committee Meeting where you can notify the Fund that you would like to receive reimbursement via direct deposit. Please do not provide any banking information on this form. The Fund will send you a separate notice requesting the information at a later date once your claim is approved by the Board of Commissioners.
The Client Protection Fund only paid for a portion or percentage of my claim, can I pursue a claim against the attorney for the balance or have I given up all my rights?
The release you signed giving the Fund the right to recover what we paid to you, is only limited to what we paid to you. We do not have a right to collect the full amount of your loss unless you were reimbursed by us for the full amount of your loss.
What information must be included with a CPF claim application?
An applicant must provide enough evidence to support the allegation of dishonest conduct or unearned fees and the resulting loss of money, property, or other thing of value. Example evidence includes fee agreements, cancelled checks (front and back), receipts, invoices indicating payment, contracts, or any other documents related specifically to the allegation of dishonest conduct and resulting loss. Do not send medical records.
Please note that the applicant should retain original documents, forwarding only copies to the Fund.
What if I do not know how to answer certain questions on my application, or lack documentation?
Complete the claim application to the best of your ability. If you are unable to answer any questions, make a note that you are unable to answer.
Provide as much information as possible. You will be given the opportunity to provide additional information through the investigative process. If you are waiting for documentation, for example, you may submit the application with a note that documentation will be provided in the future. After submitting the application, you are required to provide the Fund with any additional information later received.
Is there a time limit to submit a CPF claim application?
Yes, claimants must apply for reimbursement within two years after the loss occurred or six months after discovery, whichever is later, or within one year after an Attorney Discipline Board/Attorney Grievance Commission determination or death of the attorney, under CPF Rule 7(B).
Do I need to file a complaint with the Attorney Grievance Commission as part of the application process?
Yes. Filing a complaint, also known as a Request for Investigation with the Attorney Grievance Commission, is a part of the application process.
You may obtain a Request for Investigation form here or by calling (313) 961-6585. Please note that the AGC is not the same as the Michigan Attorney General’s Office.
I’ve already provided information to the Attorney Grievance Commission. Do I have to give the same information to the Fund?
Yes. The State Bar of Michigan and the Attorney Grievance Commission are separate entities.
Do I need to file a police report for the misappropriation?
Yes – but only if the loss exceeds $20,000. If less than $20,000, claimants are NOT required to file a report with law enforcement unless specifically advised to do so by the Fund Administrators.
For information on determining which law enforcement agency has jurisdiction for filing a report, please contact your county Sheriff’s department.
Who is a proper CPF claimant in an estate, trust, guardianship, or conservatorship matter?
The Personal Representative (sometimes called the executor) on behalf of an Estate, a Trustee on behalf of a Trust, or a Guardian or Conservator on behalf of the Protected Individual is the proper CPF claimant. Beneficiaries are generally not considered claimants.
How long does it take to process my CPF claim?
The average processing time for a claim is fourteen months; however, it may take up to three years.
The time to process a claim depends on the investigation that must be completed by CPF Department staff, how long it takes the Attorney Discipline Board or Attorney Grievance Commission to make a final decision, and for the claim to be reviewed by three committees. The claimant and respondent attorney will receive written notification of the Committee's decision regarding a claim at each step in the process.
What happens after I submit my CPF claim?
A CPF claim is reviewed to determine if it meets the requirements under the CPF Rules to be investigated. If it is not eligible for investigation, the claimant will receive a letter explaining why it is ineligible for reimbursement. Claims involving fee disputes or malpractice are examples of ineligible claims.
A claim that is eligible for review will be investigated by CPF Department staff and go through several stages to determine whether reimbursement is justified. You can read the full, detailed process below.
- Staff will investigate the claim, which includes:
- Sending a copy of the claim application to the respondent attorney and requesting a response.
- Contacting the Attorney Grievance Commission, law enforcement, courts, and anyone else who may have information.
- Requesting additional information from the claimant and respondent attorney when needed.
- If a Request for Investigation was filed with the Attorney Grievance Commission (AGC), a decision by the AGC or Attorney Discipline Board (ADB) must be complete before the claim is submitted to the Standing Committee, the first level of review. This may delay the claims administration process.
- If the claims filed by all claimants against the respondent attorney are more than $375,000, the claims are held for two years. The claimant will be notified if a hold is placed on the claim.
- Once staff’s investigation is complete and an AGC/ADB determination is received by the CPF Department, a report will be drafted and provided to the Standing Committee.
- The Standing Committee, which usually meets quarterly, will review the claim and make a recommendation that the claim be reimbursed or denied.
- The claimant and respondent attorney will be notified of the recommendation of the Standing Committee.
- If the recommendation is to deny the claim, claimant and respondent attorney will be given the reason why the claim is ineligible for reimbursement. No further review will be done without a timely request for review as explained by CPF Rule 10(G).
- If the recommendation is to reimburse the claim, the claimant and respondent attorney will be given the reason why the claim is eligible for reimbursement. Both will be given the opportunity to timely request review as explained by CPF Rule 10(G).
*Only one timely request for review is authorized throughout the entire CPF process.
- If the Standing Committee recommends reimbursement, the Committee will recommend an amount of reimbursement to the Professional Standards Committee, which is a Board of Commissioners Committee.
- The amount of reimbursement is based on the actual amount of funds misappropriated by the respondent attorney within the limits in CPF Rule 11.
- A Questionnaire will be provided to the claimant for completion after the Standing Committee meeting, if the claim is recommended for payment. The Questionnaire serves to bring the Client Protection Fund up to date regarding your claim, such as changes in contact information, any reimbursements or judgements received for the loss, pending litigation involving the loss, bankruptcy involvement, etc. The Questionnaire is required for administration of your claim.
- A recommendation for reimbursement by the Standing Committee is reviewed by the Professional Standards Committee, which makes a recommendation that the claim be reimbursed or denied to the entire Board of Commissioners.
- The claimant and respondent attorney will be notified of the recommendation of the Professional Standards Committee.
- If the recommendation is to deny the claim, the claimant and respondent attorney will be given the reason why the claim is ineligible for reimbursement. No further review will be done without a timely request for review as explained by CPF Rule 10(G).
*Only one timely request for review is authorized throughout the entire CPF process.
- A recommendation for reimbursement by the Professional Standards Committee is reviewed by the Board of Commissioners and the claim is approved for payment or denied.
- The claimant and respondent attorney will be notified of the final decision of the Board of Commissioners.
- If the claim is approved for payment, staff will contact the claimant to arrange for the claimant to sign a Subrogation Agreement prior to receiving the reimbursement. This agreement assigns (gives to the State Bar of Michigan) the claimant’s right to collect from the respondent attorney. See CPF Rule 13 for more information.
In some instances, the claim is delayed while the claimant pursues other possible sources of recovery (such as forgery claims or estate proceedings) or until the Attorney Discipline Board has made a final determination regarding the respondent attorney’s conduct. Every claimant must fully cooperate with all official investigations involving the dishonest conduct alleged in the claim.
What happens if my CPF claim is eligible and approved for reimbursement?
If a CPF claim is eligible and reimbursement is approved by the State Bar of Michigan Board of Commissioners, the claimant must sign and return a Subrogation Agreement prior to reimbursement. This agreement gives the State Bar of Michigan the claimant’s right to collect from the respondent attorney. See CPF Rule 13 for more information. The Subrogation Agreement is required for administration of your claim, and disbursement of funds will not be completed until the signed and notarized form is returned.
What if I have a fee dispute with my attorney?
Client Protection Fund Rule 7(C)(3) excludes reimbursement for claims based on a dispute regarding the correctness or applicability of the attorney fees invoiced. Claims premised upon fee disputes or overbilling are more appropriately resolved in Court or through Arbitration.
You should attempt to resolve a fee dispute with your attorney. The Attorney Discipline Board provides guidance here.
Can I file a claim with the Client Protection Fund for a relative of mine?
If the relative is unable to file a claim due to age, mental or physical incapacity and you have been given the authority to represent them, then you can file a claim on their behalf.
If the Fund denies my claim, may I request a review?
Yes, each claimant and respondent have the right to request a review within the confines of CPF Rule 10.
Is the information that I provide to the Fund confidential?
Yes, all information that you provide is confidential, except as provided for in CPF Rule 14 and Rules Concerning the State Bar, Rule 20.
For Respondent Attorney — Filing an Answer to the Notice of Claim
- The lawyer or representative has 30 days to respond or, upon request for an extension, within the timeframe specified by the State Bar of Michigan. If the lawyer or representative does not timely respond to the notice of claim, the lawyer will not be given further opportunity to respond or otherwise defend the claim, including a request for review, unless good cause is shown. Please see CPF Rule 10(B).
- Please note that your response will be provided to the Claimant.
- Additionally, if the allegations in the claim are the same or substantially similar to a grievance to which you have responded, you may provide your response to the grievance as your response to the claim with a letter indicating the same.
- Answers to the Notice of Claim may be submitted to cpf@michbar.org or mailed to:
State Bar of Michigan
Client Protection Fund
306 Townsend St.
Lansing, MI 48993-2012
Where can I get more information?
More information is available on the State Bar of Michigan website under Client Protection Fund, or
State Bar of Michigan
Client Protection Fund
306 Townsend Street
Lansing, MI 48993-2012
Phone (800) 968-1442
CPF@michbar.org
What is the Client Protection Fund?
The State Bar of Michigan’s Client Protection Fund (Fund) is a program established by the State Bar of Michigan’s Board of Commissioners, as authorized by the Michigan Supreme Court, to reimburse clients who have been victimized by attorneys who violate the profession’s ethical standards by stealing or embezzling funds entrusted to them. Acts of dishonest conduct by Michigan attorneys, as defined by CPF Rule 7(A), are not common occurrences. The Fund was established to show the good faith of Michigan attorneys. The Fund is a remedy of last resort for a client who cannot obtain reimbursement from other sources such as insurance companies or the attorney involved.
Why was the Client Protection Fund established?
The Fund was established to maintain the public’s trust of lawyers. The legal profession depends upon the trust of its clients. Although a very small number of attorneys breach that trust, it is important that the profession’s reputation for honesty be maintained and protected. The Fund serves this purpose by providing reimbursement to clients whose money or property was stolen by an attorney admitted to practice law in the State of Michigan.
How is the Client Protection Fund financed?
The Client Protection Fund is financed by attorneys. Active and inactive attorneys licensed to practice law in Michigan pay a direct annual assessment. Attorneys licensed to practice in other jurisdictions and temporarily admitted to practice under Michigan’s pro hac vice rule also pay an assessment. Contributions from unspent judicial election campaign funds, court orders, and charitable contributions may also be deposited into the Fund. No tax dollars are used.
Eligible Claim:
An eligible claim meets the criteria under CPF Rule 7, including not returning an unearned fee or theft of money.
Misappropriate:
To take something, such as money, dishonestly for one’s own use.
Malpractice:
From Merriam-Webster:” Malpractice” as “a dereliction of professional duty or a failure to exercise an ordinary degree of professional skill or learning by one (such as a physician) rendering professional services which results in injury, loss, or damage.”
Claimant:
The person who submits the CPF claim is usually called the claimant.
Respondent:
The attorney accused of dishonest conduct in the CPF claim application is the respondent.
Reimbursable Loss:
A loss that meets the criteria for a refund under the CPF Rules. A reimbursable loss is the amount that the Fund will reimburse to a claimant based on application of the CPF Rules. A reimbursable loss may not cover all money lost as a result of dishonest conduct committed by the respondent attorney.
Dishonest Conduct:
Dishonest conduct means the misappropriation of client or third-party funds by an attorney as defined under CPF Rule 7(A).
CPF Rule 7(A) states: "Dishonest conduct" means the wrongful acts committed by a lawyer including failing to return unearned fees and embezzlement.
Subrogation Agreement:
A Subrogation Agreement assigns (gives to the State Bar of Michigan) the claimant’s right to collect from the respondent attorney. See CPF Rule 13 for more information.
Last updated: July 2024