Frequently Asked Questions
Minnesota Client Security Fund
What is the Client Security Fund?
The Client Security Fund is a fund established by the
Minnesota Supreme Court to reimburse clients who suffer loss of money or other
property from the dishonest conduct of their attorney. The Fund is a remedy of last resort for
clients who cannot be repaid from other sources, such as from insurance or from
the attorney involved. Claimants are
expected to make reasonable efforts to collect from these other sources first.
Why was the Client Security Fund Established?
The legal profession depends upon the trust of clients. When a lawyer betrays that trust by taking
client funds, it is important that the victims be fairly compensated.
How is the Fund Financed?
All active Minnesota lawyers pay for the Client Security
Fund. None of the money in the Fund
comes from clients' fees. No tax dollars
are used.
Who Administers the Client Security Fund?
The Fund is administered by a Board appointed by the
Minnesota Supreme Court. The Board has
five lawyer members and two non-lawyer members.
All serve without compensation as a public service. The Office of Lawyers Professional
Responsibility provides staff services for the Board.
How Does the Client Security Board Operate and Make
Decisions?
The Minnesota Supreme Court has adopted written rules for the
Client Security Board. The Board follows
these rules in its procedures and decisions.
The Board is allowed a good deal of discretion in deciding what claims
to pay and deny, and the amount of payment.
A copy of the rules is available on request.
What Kinds of Losses are Covered?
The Client Security Fund covers most situations in which
lawyers have stolen clients' money or other property entrusted to them. The attorney in question must be a Minnesota
lawyer, and must have served the client as an attorney, in a fiduciary capacity
(as administrator, executor, trustee of an express trust, guardian, or
conservator), or as an escrow agent arising from an attorney-client
relationship. The maximum amount the
Board may pay on a claim is $150,000.
Payment by the Board is a matter of grace, not of right.
What Kinds of Losses are Not Covered?
The Fund does not cover losses resulting from the malpractice
or negligence of lawyers. The Board does not have the authority to discipline
attorneys for misconduct, to resolve fee disputes, or to determine legal
malpractice claims. Such matters should
be reported to the Office of Lawyers Professional Responsibility or may be the
subject of civil lawsuits.
What Happens When a Claim is Filed?
Each claim is reviewed to determine eligibility for
payment. If a claim is denied, the
claimant will be advised of the reasons for denial. The Board determines the merit of all claims,
and the amount of any reimbursement.
How is a Claim Filed?
A claim form, the Client Security Board Rules, or other
information may be obtained by logging onto the Client Security Board web site
at: www.mncourts.gov/csb. For further
information or assistance contact:
Minnesota Client Security
Board
1500 Landmark Towers
345 St. Peter Street
St. Paul, MN 55102-1218
Outstate:
1-800-657-3601
Fax: (651) 297-5801