LEGAL PROFESSION ACT 2007 - SECT 401 Defaults involving interstate elements if committed by 1 associate only

LEGAL PROFESSION ACT 2007 - SECT 401

401 Defaults involving interstate elements if committed by 1 associate only

(1) This section applies to a default of a law practice arising from or constituted by an act or omission that was committed by only 1 associate of the practice, if the default involves more than 1 of the cases mentioned in section 371 (2) to (4) .

(2) The law society may treat the default to which this section applies as if the default consisted of 2 or more separate defaults—

(a) 1 of which is a default to which this part applies, if this jurisdiction is the relevant jurisdiction; and

(b) the other or others of which are defaults to which this part does not apply, if another jurisdiction or jurisdictions are the relevant jurisdictions.

(3) The law society may treat a claim about the default to which this section applies as if the claim consisted of—

(a) 1 or more claims made under this part; and

(b) 1 or more claims made under a corresponding law or laws.

(4) A claim about a default to which this section applies is to be assessed on the basis that the fidelity funds of the relevant jurisdictions involved are to contribute—

(a) in equal shares in relation to the default, and disregarding the capping and sufficiency provisions of those jurisdictions; or

(b) in other shares as agreed by the law society and the corresponding authority or authorities involved.

(5) Subsection (4) does not affect the application of the capping and sufficiency requirements of this jurisdiction in relation to the amount payable from the fidelity fund after the claim has been assessed.