(1) On payment of a claim from the fidelity fund, the law society is
subrogated to the rights and remedies of the claimant against any person in
relation to the default to which the claim relates.
(2) Without limiting
subsection (1) , that subsection extends to a right or remedy against—
(a)
the associate about whom the claim is made; or
(b) the person authorised to
administer the estate of the associate about whom the claim is made and who is
deceased or an insolvent under administration.
(3) Subsection (1) does not
apply to a right or remedy against an associate if, had the associate been a
claimant in relation to the default, the claim would not be disallowed on any
of the grounds set out in section 381(3) .
(4) The law society may exercise
its rights and remedies under this section in its own name or in the name of
the claimant.
(5) If the law society brings a proceeding under this section
in the name of the claimant, it must indemnify the claimant against any costs
awarded against the claimant in the proceeding.
(6) The law society may
exercise its rights and remedies under this section even though any limitation
periods under this part have expired.
(7) The law society must pay into the
fidelity fund any money recovered in exercising its rights and remedies under
this section.