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Act Repealed Latest version as at 29 April 1993 (as enacted) | 1993 No 20

Law Practitioners Amendment Act 1993

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Act Repealed Latest version as at 29 April 1993 (as enacted) | 1993 No 20

Law Practitioners Amendment Act 1993

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1 Short Title

This Act may be cited as the Law Practitioners Amendment Act 1993, and shall be read together with and deemed part of the Law Practitioners Act 1982 (hereinafter referred to as the principal Act).

2 Change of name of District Law Society

The principal Act is hereby amended by inserting, after section 21, the following section:

“21a

“(1)

A District Law Society may, with the prior consent of the Council of the New Zealand Law Society, change its name by passing a resolution at a general meeting changing the society’s name to such new name as is specified in the resolution.

“(2)

Where a resolution to which subsection (1) of this section applies is passed, the District Law Society snail, as soon as possible, publish a copy of that resolution in the Gazette.

“(3)

On such publication, the resolution shall have effect to change the name of the District Law Society as from the date of publication or such later date as may be specified in the resolution.

“(4)

A change of name by a District Law Society under this section shall not affect any rights or obligations of the society or any of its members, or render defective any legal proceedings by or against the society, and any legal proceedings that might have been continued or commenced against it by its former name may be continued or commenced against it by its new name.”

3 Separate fee for claims after 30 April 1993

Section 165 of the principal Act (as substituted by section 2 of the Law Practitioners Amendment Act 1988) is hereby amended by inserting, after subsection (1), the following subsection:

“(1a)

The Council may fix separate fees for the purposes of this Part of this Act to meet expenditure authorised by section 161 of this Act with reference to any claims against the fund received or anticipated to be received after the 30th day of April 1993 or any other matters arising after that date.”

4 New sections substituted

The principal Act is hereby amended by repealing section 167 (as substituted by section 3 of the Law Practitioners Amendment Act 1988), and substituting the following sections:

“167 Solicitors may be required to pay levy

“(1)

If at any time—

“(a)

The fund is not sufficient, or, in the opinion of the Council having regard to any prospective claims or liabilities likely to be received or incurred, may not be sufficient, to satisfy the liabilities of the New Zealand Law Society in relation to the fund or to meet any payment authorised by section 161 of this Act; and

“(b)

The Minister of Justice has approved both the imposition of a levy under this section and the amount of that levy,—

the Council may by resolution impose on every solicitor to whom this Part of this Act applies, for payment into the fund, a levy of that amount.

“(2)

The amount of every such levy shall become payable on a date or dates and in a manner to be fixed by the Council.

“(3)

In the exercise of its powers under subsection (1) of this section the Council may, subject to the provisions of that subsection, impose separate levies in respect of:

“(a)

Any claims against the fund received before the 1st day of May 1993; and

“(b)

Any claims against the fund received or anticipated to be received after the 30th day of April 1993 or any other matters arising after that date.

“167a Practitioners not liable for more than $5,000 for claims incurred after 30 April 1993

Notwithstanding anything in section 165(1a) or section 167(1) of this Act, and without otherwise affecting the discretion of the Council as to the amount of any fees and levies, where by reason of any claims or liabilities received or incurred or anticipated to be received or incurred at any time after the 30th day of April 1993 or in respect of any other matters arising after that date, the Council imposes one or more levies, the total amount payable in any one year, being a period commencing on the 1st day of February and ending on the following 31st day of January, by every solicitor to whom this Part of this Act applies in respect of any such levies, together with any fees fixed under section 165(1a) of this Act for that year, shall not exceed $5,000.”

5 New sections inserted

The principal Act is hereby amended by inserting, after section 169, the following sections:

“169a No reimbursement of money instructed to be invested

“(1)

The fund shall not be applied in reimbursing any person for any loss relating to money which a solicitor has been instructed after the 30th day of April 1993 to invest on behalf of that person.

“(2)

Subject to subsection (3) of this section, for the purposes of this section a solicitor is instructed to invest money where a person—

“(a)

Who entrusts money to the solicitor; or

“(b)

For whom the solicitor holds money,—

instructs the solicitor to invest all or some of the money in a specified investment or in an investment of the solicitor’s choice.

“(3)

A solicitor is not instructed to invest money only because that solicitor is instructed by a person—

“(a)

To pay the money into an account with a bank in New Zealand:

“(b)

To apply money on behalf of that person to give effect to a loan agreement where that person, being the lender,—

“(i)

Specifies the borrower to whom the money is to be lent; and

“(ii)

Has not been introduced to the borrower by the solicitor for the purpose of making that loan, other than, where that person is a financial institution within the meaning of the Reserve Bank of New Zealand Act 1989, by an application for loan finance; and

“(iii)

The solicitor has not made or participated in the decision to approve the making of the loan other than by advising in respect of the terms and conditions of the loan agreement:

“(c)

To apply money to give effect to any term of a conveyance to which that person is a party, other than a conveyance which is or gives effect to a loan agreement that does not come within the terms of paragraph (b) of this subsection.

“(4)

Nothing in this section or in section 169b of this Act shall apply to money which a solicitor is authorised to invest in any case where the only authority for investing the money is given or is capable of being given by the solicitor pursuant to a power under—

“(a)

The Protection of Personal and Property Rights Act 1988:

“(b)

A trust arising out of a deceased estate:

“(c)

A trust created by a court order:

“(d)

A trust for the benefit of one or more persons suffering from physical or mental disability.

“(5)

In this section a reference to a solicitor includes a reference to—

“(a)

Any partner, employee, or agent of the solicitor:

“(b)

Any nominee of the solicitor:

“(c)

Any company registered under the Companies Act 1955 (including a solicitors nominee company but not including a company which is a party to a listing agreement with a stock exchange) of which the solicitor is a director within the meaning of that Act, or of which the principal financial benefit or effective control is directly or indirectly vested in the solicitor or any spouse, or child, or children of the solicitor:

“(d)

Any other incorporated or unincorporated body (other than a body that is a party to a listing agreement with a stock exchange) in relation to which the solicitor occupies a position comparable to that of a director within the meaning of the Companies Act 1955, or of which the principal financial benefit or effective control is directly or indirectly vested in the solicitor or any spouse, or child, or children of the solicitor.

“(6)

In this section ‘conveyance’ means—

“(a)

A deed or agreement in writing—

“(i)

For the sale and purchase of, or relating to, any interest in land or buildings, including a company lease within the meaning of section 2 of the Resource Management Act 1991:

“(ii)

For the granting, in relation to any land or buildings, of a lease, tenancy, or licence to occupy, or for the sale and purchase or transfer or assignment of any such lease, tenancy, or licence:

“(iii)

For the sale and purchase of a business (including its shares and securities) and for any leases, licences, or rights connected with the business:

“(iv)

For the sale and purchase or lease of chattels, either separately or as part of an agreement to which subparagraph (i) or subparagraph (ii) or subparagraph (iii) of this paragraph applies:

“(b)

Any other assignment or settlement by deed.

“169b Transitional provisions relating to liability for investment

“(1)

Where any money has been invested or should have been invested by a solicitor in an investment in accordance with instructions given before the 1st day of May 1993, and is to be repaid to the person beneficially entitled to it on one or more dates after the 30th day of April 1993 specified in any agreement, whether with the borrower or the solicitor, the fund shall not be applied in reimbursing any person for any loss relating to that money caused by the theft of a solicitor to whom this Part of this Act applies, or by his or her employee or agent, committed at any time after the expiration of 90 days after the first date on which that money is due to be wholly repaid to the person beneficially entitled thereto.

“(2)

Where any money has been invested or should have been invested by a solicitor in accordance with instructions given before the 1st day of May 1993 in an investment under which—

“(a)

The person beneficially entitled to repayment of the money is to be repaid on demand being made by the lender or on the occurrence of an event which will not or may not occur on a date certain; or

“(b)

There is no due date for repayment,—

the fund shall not be applied in reimbursing any person for any loss relating to that money caused by the theft of a solicitor to whom this Part of this Act applies, or by an employee or agent of a solicitor, committed after the 30th day of April 1994.

“(3)

For the purposes of this section, money shall only be taken to be invested if it would also be taken to be invested for the purposes of section 169a of this Act.”

6 Provisions applicable if fund insufficient to satisfy claims

Section 174 of the principal Act is hereby amended by repealing subsection (2), and substituting the following subsections:

“(2)

If at any time the fund is not sufficient to provide for the satisfaction of all such judgments and claims, or for any other payments authorised by section 161 of this Act, such judgments, claims, or payments shall, to the extent to which they are not so satisfied, be charged against the future accumulations of the fund.

“(2a)

Notwithstanding subsection (2) or subsection (4) of this section, any monies paid into the fund arising from a separate fee fixed under section 165(1a) of this Act, or from any separate levy imposed under section 167(3) of this Act with reference to any claims against the fund received after the 30th day of April 1993, or any other matters arising after that date, shall only be applied in respect of such claims or matters, unless the Council, in exceptional circumstances, considers that another application authorised under section 161 of this Act is warranted.

“(2b)

Notwithstanding subsection (2) or subsection (4) of this section, any monies paid into the fund arising from a separate levy imposed under section 167(3) of this Act with reference to any claims against the fund received before the 1st day of May 1993, shall only be applied in respect of such claims, unless the Council, in exceptional circumstances, considers that another application authorised under section 161 of this Act is warranted.”

This Act is administered in the Department of Justice.
Act Repealed Latest version as at 29 April 1993 (as enacted)

Law Practitioners Amendment Act 1993

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