For the purpose of this rule, “member” means a member of the society, a former member of the society, a professional law corporation and a former professional law corporation.
(Adopted: Rule 13.01, Summer Term Convocation, June 10, 2005)
13.02 The assurance fund (the “fund”) established by benchers by resolution dated the 4th day of April, A.D., 1983 is continued and is subject, with respect to any claim made against it after the date of coming into force of this rule, to the provisions of this rule.
13.03 The amount of the fund shall be fixed from time to time by resolution of Benchers, and such annual assessment shall be made by Benchers on the members of the society as shall be required to maintain the fund at the amount so fixed. The amount of the fund shall be reviewed by Benchers not less than once every two years.
13.04 (1) A person who claims a pecuniary loss because of the misappropriation or conversion by a member practicing in the province of Newfoundland and Labrador of money or other property entrusted to or received by the member in the course of the practice of law may apply for compensation from the fund by delivering a written application in an approved form to the executive director. If money or other property is received by a member with whom there is no solicitor and client relationship or otherwise not in the course of the practice of law, any misappropriation or conversion of money or other property shall not entitle a person to claim from the fund. Money or property entrusted to or received by a member as a trustee shall be deemed not to be entrusted to or received in the course of the practice of law.
(2) Every application for payment from the fund shall be filed as soon as practicable after the loss in respect of which the application is made first came to knowledge of the claimant, but in no event more than 2 years after the person seeking compensation became aware of the facts giving rise to the application.
(3) Notwithstanding rule 13.04(2), an application shall not be taken after the expiration of ten years from the date of
(4) Notwithstanding rules 13.04(2) and 13.04(3) where at the time the right to bring an application arises a person is under disability the time within which to bring an application is postponed for as long as that person is under disability.
(5) To be eligible to make a claim against the fund the applicant must establish that he or she
(Amended: Rule 13.04(5d), Fall Term Convocation, October 3, 2014)
(6) An application for reimbursement from the fund shall include the following information:
(7) The executive director shall notify the member concerned in writing and refer an application delivered pursuant to rule 13.04(1) to the insurance committee for review and investigation.
(Amended: Rule 13.04(7), Fall Term Convocation, October 15, 2007)
13.05 (1) The Insurance Committee shall consider the application and may make such inquiry as it in its discretion deems necessary, or advisable including the holding of a hearing, and shall consider any available information, documents or other evidence for the purpose of
(2) The Insurance Committee may postpone its investigation of a claim pending
(3) At the conclusion of its inquiry, the Insurance Committee shall report its findings and recommendations, with reasons, to the Benchers with respect to each application.
(Amended: Rule 13.05, Fall Term Convocation, October 15, 2007)
13.06 (1) Following receipt of the Insurance Committee recommendations under rule 13.05(3), Benchers may, in its sole and absolute discretion, and on terms it thinks fit
(Amended: Rule 13.05, Fall Term Convocation, October 15, 2007)
(2) In deciding the amount of compensation, if any, payable from the fund under rule 13.06(1), Benchers shall have regard to all relevant factors, including the following:
(3) In considering an application under this part, Benchers may in its sole discretion hear the applicant or any other person, including the concerned member, respecting any facts or issues with which it is concerned and shall decide the procedure to be used.
(4) As a pre-condition to payment, Benchers may require the applicant to obtain and/or assign to the society part or all of a civil judgment or criminal code compensation order made against the member, or any other person reasonably perceived to be liable for the loss, respecting money or other property claimed by the applicant.
13.07 (1) Subject to 13.07(3), payment of grants from the fund shall be limited to:
In this rule, the term claims year refers to the period from July 1st to the following June 30th.
Once an occurrence has been reported to the fund, all claims arising from that occurrence are assigned to the claims years in which the occurrence was first reported.
Occurrence means the misappropriation or wrongful conversion by a member of money, securities or property entrusted to or received by a member in the member’s capacity as a lawyer.
(Amended: Rule 13.07 (1a,b,c), Fall Term Convocation, October 3, 2014)
(2) Benchers may authorize payment out of the fund for expenses incurred
(3) Benchers may in their sole and absolute discretion authorize grants from the fund in excess of the limits set out herein.
(Adopted: Rule 13.07(3), Fall Term Convocation, October 3, 2014)
13.08 Where Benchers pay money out to the fund, Benchers may order that the member, on account of whose misappropriation or conversion the money is paid out, repay to the society all or part of that amount and fix the date by which the repayment shall be completed.
13.09 Any claim from a client arising from the misappropriation or conversion of money or property by a member engaged in the practice of law outside the province shall be processed in accordance with the interjurisdictional practice protocol of the federation of law societies of Canada.
(Adopted Rule XIII, Fall Term Convocation, October 1, 2001; Amended Rule XIII, Summer Term Convocation June 10, 2005)