Lawyers and Conveyancers Act 2006

Fidelity Funds

327: Money recovered by claimants to be held in trust if rights of subrogation apply

You could also call this:

"Money from another source must be held in trust to repay the Lawyers' or Conveyancers' Fidelity Fund"

Illustration for Lawyers and Conveyancers Act 2006

You get money from somewhere else for a loss. You also get or claim money from the Lawyers' Fidelity Fund for that loss. You must hold the other money in trust for the New Zealand Law Society. They use it to pay back the fund and their costs. You get money from somewhere else for a loss. You also get or claim money from the Conveyancers' Fidelity Fund for that loss. You must hold the other money in trust for the New Zealand Society of Conveyancers. They use it to pay back the fund and their costs. If you recover money for a loss, you must use it to reimburse the fund and pay costs.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM367808.

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

Topics:

Money and consumer rights > Consumer protectionCrime and justice > Courts and legal help

326: Rights of subrogation, or

"When a fund pays for a lawyer's mistake, it can take action to get the money back"

328: Provisions applicable if fund insufficient to satisfy claims, or

"What happens if there's not enough money to pay all claims against the Fidelity Fund"

Part 10Fidelity Funds

327Money recovered by claimants to be held in trust if rights of subrogation apply

If a claimant against the Lawyers' Fidelity Fund recovers (other than from that fund) any amount by way of compensation for a loss in respect of which compensation (in whole or in part) is being claimed or has been claimed or received from that fund, the claimant must hold that amount in trust for the New Zealand Law Society for reimbursement of the fund and the costs incurred by that society.
If a claimant against the Conveyancing Practitioners' Fidelity Fund recovers (other than from that fund) any amount by way of compensation for a loss in respect of which compensation (in whole or in part) is being claimed or has been claimed or received from that fund, the claimant must hold that amount in trust for the New Zealand Society of Conveyancers for reimbursement of the fund and the costs incurred by that society.