All limited licensees in Saskatchewan providing services to the public carry insurance and indemnification coverage. This coverage provides compensation to members of the public for financial losses caused when a limited licensee has been negligent and, more rarely, when a limited licensee has stolen money from a client or other party.

Insurance and indemnification are distinct and independent from the regulatory process for addressing complaints about a limited licensee’s professional conduct. If there is a basis to report that a limited licensee has acted unethically or unprofessionally, refer to the Law Society of Saskatchewan Complaints Process for information on how to register a concern.

All limited licensees providing services to the public carry professional negligence insurance through the Canadian Lawyers Insurance Association. If there is a basis to report that a limited licensee has made a mistake that has caused financial loss, a first step is to contact the limited licensee and ask them to report the matter to their insurer. Correspondence should set out:

• what they were hired to do
• what they did wrong
• when this happened
• how that mistake caused a loss

Do not delay. There are time limitations that start to run as soon as it is known or should have known that a limited licensee made a mistake that caused a loss or will cause a loss. There is a general limitation period of two years after which there may be a bar on bringing a claim for negligence.

Learn more: Frequently Asked Questions – Limited Licensing – Insurance

It may also be advisable to seek independent legal advice and it is possible to locate legal assistance related to professional negligence through the Law Society’s Find Legal Assistance Directory.

Early Resolution

Sometimes it is clear that a limited licensee has made a negligent mistake, the mistake has caused a loss, and the amount of the loss can be readily calculated. In these circumstances, there will be efforts to try to settle the claim.

If No Early Resolution, Then Litigation

Sometimes it is not clear that a limited licensee has made a negligent mistake. If there is no agreement on whether there was an error, that an error caused a loss or on a settlement amount, it may be necessary to sue the limited licensee in court. In these circumstances, to proceed with a claim for negligence, a lawsuit needs to be filed against the limited licensee. It is recommended to seek independent legal advice related to professional negligence through the Law Society’s Find Legal Assistance Directory.

All limited licensees providing services to the public are required to contribute to an indemnification fund which is known as the Limited Licensee Special Fund and is administered by the Law Society of Saskatchewan. If a claim is made against a limited licensee relating to theft by the limited licensee of money or other property, this indemnification coverage reimburses the claimant, on the limited licensee’s behalf, for the amount of the loss.

The Law Society requires limited licensees to be honest, however, if there is a basis to report that a limited licensee has stolen or engaged in theft, a complaint should be filed. The Law Society investigates complaints about limited licensee conduct as well as claims for compensation. There may be an entitlement to compensation under the Limited Licensee Special Fund.

Limited Licensee Special Fund

The Law Society provides financial protection so that members of the public do not suffer hardship because of the actions of a dishonest limited licensee. If a limited licensee has stolen money or other property, it is possible to make a claim for reimbursement.

How to make a claim

Submit a notice of a claim in writing to the Executive Director of the Law Society as soon as becoming aware of the limited licensee’s theft. The notice of claim should set out:

• the details of the theft
• when this happened
• the amount being claimed.

It is not necessary to hire a lawyer or limited licensee to assist with a claim, but there may be situations where it is advisable to obtain independent legal advice about a claim. Refer to the Law Society’s Find Legal Assistance Directory.

Claims processing

Once the Law Society receives notice of a claim, a Claims Investigation Committee is appointed to:

• investigate the claim
• determine whether the claim meets the criteria for payment under the Limited Licensee Special Fund.

As soon as the Law Society has received the necessary information, investigation into the claim begins. The Law Society will work to resolve a claim as quickly as possible. The length of time required to conduct the investigation will depend on various factors, which may include other parallel investigations into the conduct of the limited licensee.

Once the investigation is complete, the Claims Investigation Committee will make recommendations to the Board (Benchers) of the Law Society in relation to whether all, a portion, or no amount of the compensation claimed should be paid.

Eligible claims

Before a special fund coverage claim will be considered for payment, the following three requirements must be met:

1. The claim must be the result of dishonest appropriation – in other words, the limited licensee stole money or other property.
2. The property in question must have been received by the limited licensee acting in their capacity as a limited licensee.
3. The claim cannot be connected to the wrongful or unlawful conduct, fault or neglect by the claimant, their spouse or anyone associated with the claimant’s organization and the lost property cannot have been obtained unlawfully.

There may be other considerations that limit entitlement to reimbursement, although they are unlikely to apply to most claims.

Ineligible claims

Special Fund coverage will not compensate a claimant in cases where a limited licensee has been careless or negligent, or there is a dispute over fees.

Claim limits

Special Fund coverage will reimburse a claimant, on behalf of the limited licensee who has perpetrated theft, for the value of the property taken. If the property taken is not money, a claimant will be reimbursed for the property’s actual cash value at the time the property was taken. Recovery is limited to $10,000 per claim.

The amount paid will be reduced by any monies otherwise available to a claimant, the limited licensee, or the limited licensee’s firm, to repay the stolen funds.