Client Security Fund
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what is the client security fund?
The State Bar of South Dakota's Client Security Fund is
established to make limited
reimbursements to persons who have suffered financial losses because of
dishonest acts by
South Dakota lawyers. The fund is a remedy of last resort for clients
who are not able to
obtain reimbursement from other sources, such as insurance or the
lawyer involved.
why was the fund created?
The lawyers of South Dakota recognize that, despite the
stringent standards of
admission to the Bar enforced by the Supreme Court of South Dakota,
there may be a very
small number of lawyers who are not worthy of the trust which their
clients place in them.
The Bar has always had a strong disciplinary system for the purpose of
reprimanding,
suspending or disbarring lawyers who violate the strict standards of
the South Dakota
Supreme Court's Rules of Professional Conduct for lawyers.
However, the Bar recognizes that a disciplinary system alone
is not enough, and that a
Client Security Fund may be of some assistance to those who have
suffered financial losses
because of dishonest
acts by South Dakota lawyers.
how is it funded?
The Client Security Fund consists of a portion of the dues
paid by every member of the
State Bar of South Dakota. The Fund truly represents an effort by all
members of the State
Bar to compensate clients for the dishonest acts of a few lawyers.
who is eligible to receive awards from the fund?
Generally any person who has lost money or property because of
the fraudulent or
dishonest act of a South Dakota lawyer may be eligible to receive
limited reimbursement
from the Client Security Fund.
Certain requirements must be met and certain exclusions may be
applicable, some of
which include:
- That the loss does not arise out of negligence or
malpractice by the lawyer in question.
- That the loss is not covered by other sources, such as
lawyer malpractice insurance.
- That the lawyer shall have died, been adjudged mentally
ill, been permitted to voluntarily surrender his certificate of
admission to practice, has left the jurisdiction of South Dakota and
cannot be found with the exercise of reasonable diligence, or been
disbarred or suspended from practice.
- That a judgment is obtained (except for claims under
$750.00) based on the fraudulent or dishonest act of the lawyer.
who investigates the claims and grants payments
from the fund?
The Client Security Fund is operated by a committee of five
members appointed by the
President of the State Bar of South Dakota.
Members of the committee evaluate each claim and the committee
grants payments trom the
Fund at its discretion, according to the circumstances of each case.
Payments from the
Fund are a matter of grace and not of right. The amount of
reimbursement to a client may
be only a portion of the claim and the maximum payment allowed from the
Fund for a single
claim is $10,000.
how is the claim filed?
Forms for filing a claim may be obtained from the State Bar of
South Dakota at 222 E.
Capitol, Pierre, SD 57501. Fill out the form as completely as possible
and return it as
directed. You should keep a copy of the completed form for your
records. If you attach
evidence or documents to the form when you send it, be sure to keep
copies of those for
your files.
It is not necessary to retain a lawyer to submit a claim or to
represent a claimant.
Members of The State Bar of South Dakota have
adopted high
standards of professional
conduct which define proper and improper conduct for a lawyer handling
legal matters. To
maintain these standards, a system of self-discipline has been created
and is administered
through the Disciplinary Board of the State Bar, the Attorney General
of the State of
South Dakota, and the South Dakota Supreme Court.
The State
Bar of South Dakota
222 E. Capitol
Pierre, SD 57501
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