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Client Assistance Fund

The Client Assistance Fund is a public service of the legal profession in Louisiana and was
created in 1962 to compensate clients who lose money due to a lawyer’s dishonest conduct.

Types of losses covered
Basically, the fund can reimburse clients up to $50,000 for thefts by a lawyer. It covers
money or property lost because a lawyer was dishonest (not because the lawyer acted incompetently
or failed to take a certain action). To qualify for the fund, clients must be able to show that the
money or property came into the lawyer’s hands.
The fund does not pay interest nor does it pay for any damages done as a result of losing
your money. For example, if a lawyer takes money that should have been used to prevent a
foreclosure on your house, the fund can repay you for the lost money but not the lost house.
The fund will reimburse fees only in limited cases. If the lawyer did no work, fees may be
covered by the fund. Fees are not reimbursable simply because someone is dissatisfied with the
services or because the work was not completed. For example, if the lawyer consulted with the
client and/or appeared in court on the client’s behalf, prepared correspondence or reviewed and filed
documents, fees may not be reimbursable under the fund’s rules.
Almost anyone who has lost money due to a lawyer’s dishonesty can apply for
reimbursement. You do not have to be a United State citizen. However, if you are the spouse or
other close relative of the lawyer in question, or the lawyer’s business partner, employer or
employee, or a business controlled by the lawyer, the fund will not pay you reimbursement. Also,
the fund will not reimburse for losses suffered by government entities or agencies.

Who decides if an application will be paid?
The Client Assistance Fund Committee decides whether you qualify for reimbursement from
the fund, and, if so, whether part or all of your application will be paid. The committee is not
obligated to pay any claim; disbursements from the fund are at the sole discretion of the committee.
The committee is made up of volunteer lawyers who investigate all claims. The Committee Chair
establishes panels of committee members to review claims and render written reports regarding
pending claims. Panel recommendations are reviewed by the full Committee.
Because the Client Assistance Fund Committee requires proof that the lawyer dishonestly
took your money or property, applicants must register a complaint against the lawyer with the
lawyer discipline system, if they have not already done so.
In considering claims, the Client Assistance Fund looks at many factors including the
following:
- The negligence, if any, of the Applicant which contributed to the loss.
- The comparative hardship of the Applicant suffered by the loss.
- The total amount of Reimbursable Losses in previous years for which total
reimbursement has not been made and the total assets of the Fund.
- The total amount of Reimbursable Losses of the Applicant and other clients of any one
Lawyer or association of Lawyers.
- The Committee may, in its sole discretion, allow further reimbursement of a Reimbursable
Loss allowed by it at a prior time with respect to a loss which has not been fully reimbursed;
provided such further reimbursement would not be inconsistent or in conflict with any
previous determination with respect to such a loss.
- No reimbursement shall be made to any Applicant, a summary of whose claim has not
been submitted to the members in accordance with Paragraph V, Subparagraph 4, of these
Rules of Procedure. No reimbursement shall be made to any Applicant unless said
reimbursement is approved by a majority vote of the Committee at a duly held meeting at
which a quorum is present.