Mich. Client Protection Fund Rule 13

• A lawyer whose dishonest conduct has resulted in reimbursement shall make restitution to the Fund including interest and the expense incurred by the Fund in collection of reimbursement. A lawyer’s failure to make a satisfactory arrangement for restitution may be cause for suspension, disbarment or denial of an application for reinstatement.

• As a condition of reimbursement, and to the extent of the reimbursement provided by the Fund, a claimant, and where applicable the other person receiving reimbursement from the Fund (payee), must enter into an agreement that provides that the payee:

• transfers the payee’s rights against the lawyer, the lawyer’s legal representative, estate, or assigns; and of the payee’s rights against any third party or entity who may be liable for the payee’s loss, up to the amount paid by the Fund, any related collection costs incurred by the Fund, and interest to the State Bar of Michigan Client Protection Fund unless the Board decides otherwise.

• agrees to cooperate in all efforts that the SBM undertakes to achieve restitution for the Fund.

• agrees to repay the Fund if the payee is subsequently reimbursed from another source in an amount that exceeds the difference between the amount of total loss identified by the Fund and the Fund award. Such repayment shall not exceed the amount of the Fund award, unless the Board decides otherwise.

• The SBM will undertake all reasonable efforts to recover payments made by the Fund from responsible or related entities that caused the loss to the claimant.

• The Fund may retain an attorney to pursue recovery.

• The Fund will pay fees and costs, including attorney’s fees, to attempt to recover payments made by the Fund. Any recovery obtained by the Fund will first be used to reimburse the Fund for fees and costs, including attorney’s fees, and second, to reimburse the Fund for the amount paid to the payee.

• If the payee has sustained a loss in excess of the amount of reimbursement received from the Fund, the SBM as subrogee or assignee of a claim, must advise the payee of litigation attempting to recover fund payments, and the payee may join in the action to recover the payee’s unreimbursed losses.

• In the event that an action is commenced by anyone other than the SBM to recover unreimbursed losses against the lawyer or another entity that may be liable for the loss, the payee must notify the SBM.