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Compensation Fund

The Compensation Fund helps clients who have lost money because of the dishonesty of a lawyer or paralegal. It is paid for exclusively by the lawyers and paralegals of Ontario, out of their own pockets. Over the years it has paid out millions of dollars to help clients. 

If you've lost money due to a lawyer or paralegal's dishonesty, the fund can reimburse you for all or part of your loss. Typically, the fund will pay for losses involving money from estates, from trust funds held for real estate closings and from settlements in legal actions.

The fund doesn't reimburse in cases dealing with negligence, except in special circumstances, as described below and in the attached report.

Claimants may apply to the Law Society Compensation Fund in cases of negligence where their lawyer has intentionally:
a) failed to report a claim at all or in a timely fashion to the professional liability insurer (LawPRO), or
b) failed to co-operate with LawPRO in accordance with the insurance policy’s terms and conditions,

provided that the lawyer intended to prejudice the claimant’s efforts to obtain compensation from LawPRO, resulting in no insurance payment.  In such cases, the lawyer’s conduct will be considered dishonest — thereby making the clients eligible to apply to the Compensation Fund for compensation.

For information on how to deal with complaints related to negligence,  see Complaining about a lawyer or paralegal.

Making a Compensation Fund claim 

Contact us to get started. We'll ask you to send a letter explaining the loss. The letter should be sent within six-months from the time you first find out about the loss. Once we receive your letter, we'll send you a package with all the details you need to make a claim.  

A lawyer will be assigned to the case. 

For more information, see Frequently Asked Questions about the Compensation Fund.  

Terms or Concepts Explained