(a) an external examiner is guilty of neglect
in relation to an external examination of the trust records of a law practice
and there has been a default in relation to the law practice; and
(b) the law
society pays an amount from the fidelity fund to reimburse persons who
suffered loss because of the default.
(2) The law society has an action for
damages against the external examiner in relation to the external examination.
(3) The right of action is similar to the action for damages that the law
practice, or any legal practitioner associate of the practice, would have had
against the external examiner.
(4) If the default arises from or is
constituted by an act or omission of the law practice, or 1 or more legal
practitioner associates of the law practice, subsection (2) applies as if the
default arises from or is constituted by an act or omission of a lay associate
of the law practice.
(5) The amount of damages the law society may claim
under this section must not be more than the total amount paid from the
fidelity fund to reimburse all persons who suffered loss because of the
default.
