Plain language law

New Zealand law explained for everyone

Lawyers and Conveyancers Act 2006

Preliminary provisions

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

You could also call this:

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

Illustration for Lawyers and Conveyancers Act 2006

You can suffer a pecuniary loss if someone steals money or property that was given to a conveyancing practitioner. If this happens, the conveyancing practitioner and some other people are personally liable for the loss. This includes the person who stole, and others like their employer or someone who controls the firm. You are liable if the theft was done by someone related to the conveyancing practitioner. This can be a partner, employee or someone who manages the firm. The conveyancing practitioner and their firm are also liable. But if you are a shareholder of the firm and do not have voting rights, you are not liable. You must also not be involved in the firm's services or managing the estate of a deceased director or practitioner. Then you will not be personally liable for the pecuniary loss.

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 It might be out of date or be missing some parts.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=DLM365722.

This page was last updated on — View changes

Topics:
Money and consumer rights > Consumer protectionBusiness > Industry rules
Previous

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

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

Next

20: Act to bind the Crown, or

"The law applies to everyone, including the government."

Part 1Preliminary provisions

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

  1. If a person suffers pecuniary loss by reason of the theft of any money or valuable property that has been entrusted to a conveyancing practitioner or an incorporated conveyancing firm in the course of the conveyancing practitioner's or incorporated conveyancing 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—

  2. by any person who is, in relation to the conveyancing practitioner, a related person or entity; or
    1. by any agent, employer, or employee of the conveyancing practitioner or incorporated conveyancing firm (whether or not that agent, employer, or employee is also a conveyancing practitioner); or
      1. by any agent or employee of a person who is, in relation to the conveyancing practitioner, a related person or entity (whether or not that agent or employee is also a conveyancing practitioner); or
        1. by any partner or director or other person who controls or manages the incorporated conveyancing firm or any body that is, in relation to the conveyancing practitioner, a related entity.

          1. The persons who are personally liable under subsection (1) are as follows:

          2. the conveyancing practitioner to whom, or the incorporated conveyancing firm to which, the money or other valuable property was entrusted:
            1. any person who is, in relation to the conveyancing practitioner referred to in paragraph (a), a related person or entity:
              1. any person who is a director or shareholder of the incorporated conveyancing firm referred to in paragraph (a).

                1. Despite subsection (2), a person who is a shareholder of the incorporated conveyancing firm referred to in subsection (2)(a) is not personally liable under subsection (1) if—

                2. that shareholder does not hold any shares in the incorporated conveyancing firm that confer voting rights; and
                  1. that shareholder is not a person who is actively involved in the provision by the incorporated conveyancing firm of regulated services; and
                    1. 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 conveyancing firm; or
                        1. a conveyancing practitioner who was actively involved in the provision by the incorporated conveyancing firm of regulated services.