Client Security Fund

Every state in the U.S. and province in Canada has some form of client protection fund. Texas’s fund is called the Client Security Fund and holds more than $3 million in its corpus. Payouts are funded through an annual appropriation from the Bar; interest on the corpus; and any restitution received.

Applications to the Fund are reviewed and acted upon by the Client Security Fund Subcommittee, a standing subcommittee of the State Bar’s Board of Directors. The CDC through Claire Reynolds serves as the administrator and legal counsel to the Fund.

Reynolds is responsible for conducting investigations on applications and presenting recommendations to the Subcommittee.

Unless the lawyer is already disbarred, resigned in lieu of discipline, or deceased, eligible applicants must file a grievance which results in findings that the lawyer stole the client’s money, or failed to refund an unearned fee. Applicants must present proof of their losses, and meet the statute of limitations for the Fund, which is 18 months following the date of the disciplinary judgment. To submit an online application to the Client Security Fund, please click here.

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