Lawyers’ fidelity fund overhauled

Press, 8 December 1988, Page 18

Lawyers’ fidelity fund overhauled

PA Wellington The Law Society has overhauled procedures for recovery from its fidelity fund after publicity about the Little case. These do not involve changes to the existing legislation because the society is awaiting the outcome of another case in Tauranga involving $1.5 million of misappropriated money. Earlier this year the television programme, “Fair Go,” investigated the difficulties a Waikato farming couple, Graham and Trish Little, were having in recovering an inheritance stolen from them in 1986 by their lawyer. They had been seeking compensation from the fund.

A special fund review committee was set up and the society’s executive director, Mr Alan Ritchie, said its recommendations had been accepted and would avoid repetition of

the Littles’ problems. A “friends panel" of lawyers would be set up which could help solicitors acting for fund claimants. The panel would help fund missing funds if required. Solicitors acting for claimants would be approached by the society and told to get matters done on time. Claimants would have each step of the recovery process explained to them.

The fund committee would ensure claims were properly made and pursued by solicitors acting for claimants.

Laypersons on the committee were being considered but as legislative change would be needed this would not now be implemented. Payment of interest to successful claimants on their lost money and recovery costs were being contemplated pending a Court of Appeal decision.