Part 7Guarantee of management rights to registered managers
Compensation
65Recovery of compensation paid where loss caused by solicitor's negligence
Without limiting section 64, where any sum of money is lawfully paid out of public money as compensation for any loss or damage sustained in any case to which section 62 applies, and that loss or damage was caused wholly or partly by the negligence of the purchaser's solicitor, the amount of that compensation (together with all costs incurred in testing or defending any claim or action in relation to that compensation), to the extent that it may properly be attributed to that solicitor's negligence, shall be deemed a debt due to the Crown from that solicitor, and may be recovered from that solicitor or from that solicitor's personal representatives, by action of law, in the name of the Registrar, or, in the case of bankruptcy, may be proved as a debt due from that solicitor's estate.
No solicitor shall be held for the purposes of subsection (1) to have acted negligently merely because that solicitor relied on a search copy issued under and for the purposes of section 62 without also searching any other record held by the Registrar unless, in the special circumstances of the case, a prudent and competent solicitor would have searched that record.
A certificate signed by the Minister of Finance, verifying the fact of the payment of compensation out of public money, shall, for the purposes of this section, be prima facie proof that such payment was made.
All money recovered in any action pursuant to subsection (1) shall be paid to the credit of a Crown Bank Account.
Notes
- Section 65(4): amended, on , pursuant to section 65R(3) of the Public Finance Act 1989 (1989 No 44).

