Client Security Fund

The Client Security Fund Process

Confirm Eligibility

Ensure your situation meets these specific requirements:

• Attorney-Client Relationship: The loss must have occurred while the attorney was acting as your lawyer or in a customary fiduciary capacity (e.g., as an estate executor).

• Entrusted Property: You must have provided money or property to the attorney in connection with legal services.

• Dishonest Conduct: The loss must be due to "dishonest conduct," defined as embezzlement or wrongful taking/conversion of your funds.

• Exhaustion of Remedies: You must demonstrate that you have exhausted all other viable means to collect the loss, such as insurance or civil suits. At a minimum, you need to file a fee dispute petition with the Bar’s Attorney-Client Assistance Program.

File a Grievance (Recommended First Step)

While not always strictly required before starting the CSF application, filing a grievance with the North Carolina State Bar is a standard part of the accountability process. The CSF application will ask if you have filed one and for the resolution.

Prepare Documentation

Gather evidence to prove the loss. The board requires copies (not originals) of:

• Proof of Payment: Canceled checks, receipts, or bank statements.

• Legal Documents: Fee agreements, settlement statements, or letters from the attorney.

• Recovery Efforts: Documents showing any partial reimbursements or unsuccessful legal actions taken to recover the money.

Complete and Notarize the Application

Download the Application for Reimbursement in English or in Spanich from the State Bar website.

• The application must be notarized before submission.

• You must also sign a Subrogation Agreement, which transfers your right to sue the attorney to the State Bar so they can attempt to recover the funds they pay out to you. This can be found on the last page of the Application for Reimbursement.

Investigation and Board Review

• Investigation: A State Bar investigator will review your claim and may contact you for more details.

• Attorney Notice: A copy of your claim is sent to the accused lawyer, who is given an opportunity to respond.

• Board Meeting: The Client Security Fund Board meets quarterly to review investigated claims and decide on reimbursement.

Notification of Decision

The board will notify you by mail of their decision. Reimbursement is "a matter of grace" in the board's sole discretion, not a legal right. 

Contact the Client Security Fund

You can send an email to the Client Security Fund at CSF@ncbar.gov or call the State Bar at (919) 828-4620.