Mich. Client Protection Fund Rule 11

• Claim Reimbursement Maximum. Only one claim will be processed for any person or group of persons who has or have a mutual or common interest in the relationship with the lawyer or group of lawyers acting in collusion, even though each member of such group may have separately sustained a loss. “Group of Persons” may include: corporations, partnerships, associations, estates of decedents, and persons having mutual, common, or joint interests in property. The Board determines the maximum amount that the Fund may reimburse for losses arising from any incident or series of incidents constituting dishonest conduct by a single lawyer or group of lawyers acting in collusion; the current claim reimbursement maximum is $150,000.

• Aggregate Maximum Reimbursement. The Board determines the aggregate maximum amount that the Fund may reimburse for losses as the result of the dishonest conduct of a single lawyer or group of lawyers acting in collusion; the current aggregate maximum reimbursement is $375,000.

• When SBM staff forecasts that claims may exceed this limit, all claims against the lawyer or lawyers shall not be paid for two years following the filing of the initial claim against the lawyer or lawyers. The Board will review each claim individually and determine the “Actual Claim Loss,” which is the total loss calculated under these Rules.

• If the total of the combined Actual Claim Losses suffered by all claimants exceeds the aggregate maximum amount approved by the Board, then the reimbursable losses will be apportioned on a pro rata basis as provided below:

• The percentage of the aggregate maximum will be calculated by dividing the actual Claim Loss by the total of all Actual Claim Losses, then

• Multiplying the percentage by the aggregate maximum.

Actual Claim Loss ÷ Total of all Actual Claim Losses = percentage of aggregate maximum

Actual Claim Loss multiplied by percentage of aggregate maximum = reimbursement amount

• If any payment would exceed the maximum amount payable to a single claimant as defined by 11(A) above, the maximum recommended payment will be capped at the Claim Reimbursement Maximum and the remainder will be prorated between the remaining claimants.

• If a payment is to be made to a minor or a protected individual, reimbursement may be paid to any person or entity authorized by applicable law to receive the reimbursement for the benefit of the payee.

• Payments are made in such amounts and at such times as the Board deems appropriate and may be paid in a lump sum or installment payments.