5
THE NORTH CAROLINA STATE BAR
CLIENT SECURITY FUND
Subrogation Agreement
A. The undersigned applicant has signed and submitted an application to induce the Client Security
Fund (the “Fund”) to process and investigate a claim and to consider reimbursement of all or part of
the loss incurred by the applicant as a result of the dishonest conduct of the accused lawyer.
B. Upon payment by the Fund of all or any portion of the loss, applicant, in consideration of such
payment:
1 transfers, assigns, and sets over to the North Carolina State Bar, as subrogee, all of applicant’s
claims and demands against and rights to sue the accused attorney arising out of the dishonest
acts described in this application (the “Subrogated Claims”);
2 authorizes the North Carolina State Bar to pursue all Subrogated Claims against the accused
attorney, either in the name of the applicant, in the State Bar’s name, or both, as the State Bar in
its sole judgment deems advisable;
3 agrees to cooperate with the North Carolina State Bar in: (a) enforcing any Subrogated Claim,
(b) the investigation of this claim, and (c) the investigation and prosecution of any related
disciplinary proceedings against the accused attorney;
4 agrees to repay the Fund, up to the amount paid to the applicant by the Fund plus expenses, any
amounts based on this claim subsequently received by applicant from any source other than the
Fund; and,
5 agrees to assign to the North Carolina State Bar any judgments obtained by applicant against
the accused attorney arising out of the attorney’s dishonest conduct.
C. The applicant understands that:
1 all civil actions against the accused attorney shall be under the control of the North Carolina
State Bar and the State Bar may prosecute, fail to prosecute, or abandon any such action against
the accused attorney as the State Bar may deem appropriate in its sole discretion and without
the necessity of the consent or approval of the applicant; and
2 should the applicant receive an award from the Fund, the facts relating to the loss become a
matter of public record.
3 IN ESTABLISHING THE CLIENT SECURITY FUND PURSUANT TO ORDER OF THE
SUPREME COURT OF NORTH CAROLINA, THE NORTH CAROLINA STATE BAR DID
NOT CREATE OR ACKNOWLEDGE ANY LEGAL RESPONSIBILITY FOR THE ACTS
OF INDIVIDUAL ATTORNEYS IN THE PRACTICE OF LAW. ALL REIMBURSEMENTS
OF LOSSES FROM THE CLIENT SECURITY FUND SHALL BE A MATTER OF GRACE
IN THE SOLE DISCRETION OF THE BOARD ADMINISTERING THE FUND AND NOT
A MATTER OF RIGHT. NO APPLICANT OR MEMBER OF THE PUBLIC SHALL HAVE
ANY RIGHT IN THE CLIENT SECURITY FUND AS A THIRD PARTY BENEFICIARY
OR OTHERWISE.
Signed the ____________ day of ________________________________ 2______.
_____________________________ ________________________________
Signature of Applicant Signature of Co-Applicant
