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Clients’ Financial Assistance Fund

The Clients' Financial Assistance Fund (the Fund) of the Indiana State Bar Association (ISBA) provides compensation to qualified applicants who have suffered a monetary loss as the result of the dishonest acts of an ISBA member acting as a lawyer or fiduciary.

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How the Fund Works

Public trust in the legal profession is vital to its success. In acknowledgement of this—and recognizing that lawyers play a role in restoring and maintaining that trust—ISBA members volunteer funds to help those who fall victim to the few lawyers who are dishonest.

A portion of every ISBA member's dues goes into the Fund and is awarded to eligible applicants who have suffered a monetary loss through the intentional, dishonest actions of an ISBA member. No client or member of the public has rights to the Fund as a third-party beneficiary; any award(s) from the Fund depends on the discretion of the ISBA and its rules and regulations. Applications to the Fund are meant as a last resort, after applicants have tried reclaiming their loss through other means (including insurance and/or small claims court).

Eligibility

For full eligibility guidelines, please review the Rules of Procedure »

To apply for reimbursement, you must meet the following criteria:

  • You are a resident or citizen of Indiana, or the legal matter occurred in Indiana.
  • The attorney in question was a practicing member of the Indiana bar and a member of the Indiana State Bar Association when the conduct occurred.
  • Your claim is based on the attorney's dishonest conduct that involve(d) the misappropriation of money or other property. The conduct happened (or a reasonable person would have noticed the conduct) within the past two years.
  • You submitted a request for investigation (commonly called a "grievance") with the Indiana Supreme Court Disciplinary Commission (unless the attorney is deceased, disbarred, or has resigned). File a grievance »

Claims Ineligible for Reimbursement

  • The Fund will not refund any attorney fees or expenses involved in (a) exploring other remedies and/or (b) preparing this application.
  • Spouses, parents, children, relatives within the fourth degree, associates, and/or employees of the dishonest attorney are not eligible for reimbursement.
  • Fee disputes or claims of legal malpractice or negligence are not eligible. The claim must be based on a monetary loss due directly to an attorney's dishonest act or omission involving the misappropriation of funds or other property.
  • Claims against attorneys who were not licensed in Indiana or who were not members of the ISBA at the time of misconduct are not eligible.

Review Process

The Fund is managed by a committee of ISBA members who volunteer their time to review applications, investigate claims, and oversee the distribution of funds.

Once an application is submitted, the committee designates a member(s) to investigate the claim made. The member(s) will then report out to and share recommendations with the full committee. A majority vote will determine whether to grant the application in whole or in part, whether to deny the application, or whether to continue the investigation.

Please understand that this is a lengthy process, and your application could take several months to resolve. 

 FAQ

"Dishonest" conduct includes theft or embezzlement of money or conversion of money, property, or other things of value; refusal to refund unearned fees and costs deposits; or borrowing money from a client without intention or ability to repay it. This does not include claims of malpractice or fee disputes.
This can be a lengthy process for eligible claims. Be prepared for your application to take several months to resolve.
All payments are made as a matter of grace, and no client or member of the public has any right in the Fund as a third-party beneficiary or otherwise.

The total amount awarded to eligible claims will depend on a number of factors. The committee will consider, among other factors, the degree of hardship you’ve suffered as a result of the loss, the degree of negligence (if any) that may have contributed to the loss, and the total amount of losses caused by any one attorney or group of attorneys, when determining your potential reimbursement. At the moment, there is a limit of $15,000 per claimant, with a cap of $50,000 for claims that arise out of the conduct of one attorney.
The Fund only awards compensation to clients/individuals who meet the eligibility requirements. If you do not meet those, you can attempt to settle the loss through small-claims court or through insurance.

 How to Apply

If upon reading the Rules of Procedure you feel you qualify, please complete the following steps:

  1. If you have not done so already, file a grievance with the Indiana Supreme Court Disciplinary Commission »
  2. Confirm that the attorney is a member of the ISBA. Search the member directory »
  3. Fill out the below pre-application form.

ISBA staff review and screen each made claim. If your claim meets the basic eligibility requirements, staff will send the complete application form and instructions. Be prepared to provide the following records:

  • any attorney-client contract
  • any letter outlining the fee arrangement
  • any itemized bills from the attorney, if they are relevant to your application
  • any checks or receipts for fees paid to the attorney
  • the grievance you filed with the Indiana Supreme Court Disciplinary Commission
  • any police report making allegations against the attorney
  • any other documents relevant to your application