New South Wales Consolidated Acts

LEGAL PROFESSION ACT 2004 - SECT 459

459 Claims by law practices or associates about notional defaults

(1) If, in respect of a default arising from or constituted by an act or omission of an associate of a law practice (the "first associate"):

(a) another associate (the "other associate") of the practice, or the practice itself, has paid compensation for pecuniary loss resulting from the default, and

(b) the other associate or the practice has, in the opinion of the Law Society Council, at all times acted honestly and reasonably in relation to the default,

the other associate or the practice may make a claim as if the compensation paid by the other associate or practice were a pecuniary loss suffered as a result of the default.

(2) The other associate or the practice may not claim under this section more than the amount paid by the other associate or practice as compensation for pecuniary loss resulting from the default as referred to in subsection (1) (a).

(3) A reference in this section to another associate of the law practice includes a reference to:

(a) a former associate of the practice, and

(b) in relation to the payment of compensation and the making of a claim-the personal representative of a deceased associate of the practice or a deceased former associate of the practice.