Lawyers and Conveyancers Act 2006

Preliminary provisions

18: Liability of lawyer principals in respect of pecuniary loss by reason of theft

You could also call this:

"Lawyers are responsible if their staff steal your money or valuables"

Illustration for Lawyers and Conveyancers Act 2006

You trust a lawyer or a law firm with your money or valuable things. If someone steals from them, you might lose money. The people who run the law firm, or are related to the lawyer, can be held responsible for your loss. This includes the lawyer, people who work with them, or people who control the law firm. You are protected if the theft is done by someone who works for the lawyer or law firm. This also includes people who are related to the lawyer, or who work for someone related to the lawyer. The people in charge of the law firm can be held responsible for your loss. But if you own part of the law firm, you might not be responsible for the loss. This is if you do not have any control over the law firm and are not involved in its daily work. You also must not be in charge of the estate of someone who used to work for the law firm.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM365721.

This page was last updated on 4 January 2026 — View changes

Topics:

Money and consumer rights > Consumer protectionCrime and justice > Police and safety

17: Liabilities of director or shareholder of incorporated firm, or

"What directors and shareholders of law firms are responsible for"

19: Liability of conveyancing practitioner principals in respect of pecuniary loss by reason of theft, or

"When someone steals from a conveyancing practitioner, who is responsible for the loss?"

Part 1Preliminary provisions

18Liability of lawyer principals in respect of pecuniary loss by reason of theft

If a person suffers pecuniary loss by reason of the theft of any money or valuable property that has been entrusted to a lawyer or an incorporated law firm in the course of the lawyer's or incorporated law firm's practice, the persons specified in subsection (2) are, in addition to the person who committed the theft, personally liable for that pecuniary loss if the theft was committed—
by any person who is, in relation to the lawyer, a related person or entity; or
by any agent, employer, or employee of the lawyer or incorporated law firm (whether or not that agent, employer, or employee is also a lawyer); or
by any agent or employee of a person who is, in relation to the lawyer, a related person or entity (whether or not that agent or employee is also a lawyer); or
by any partner or director or other person who controls or manages the incorporated law firm or any body that is, in relation to the lawyer, a related entity.

The persons who are personally liable under subsection (1) are as follows:
the lawyer to whom, or the incorporated law firm to which, the money or other valuable property was entrusted:
any person who is, in relation to the lawyer referred to in paragraph (a), a related person or entity:
any person who is a director or shareholder of the incorporated law firm referred to in paragraph (a).

Despite subsection (2), a person who is a shareholder of the incorporated law firm referred to in subsection (2)(a) is not personally liable under subsection (1) if—
that shareholder does not hold any shares in the incorporated law firm that confer voting rights; and
that shareholder is not a person who is actively involved in the provision by the incorporated law firm of regulated services; and
that shareholder is not a person who is an administrator of the estate of a person who, at the time of his or her death, was—
1. a director of the incorporated law firm; or
2. a lawyer who was actively involved in the provision by the incorporated law firm of regulated services.