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The Legal Contribution Trust

Addressing the Court

The Legal Contribution Trust administers the Solicitors’ Guarantee Fund (Fidelity Fund under section 222 of Legal Profession Uniform Law (WA)). The Fidelity Fund is a source of compensation to persons who suffer pecuniary loss due to defaults by law practices arising from dishonest acts or omissions of associates of the practice relating to trust money or trust property.

 

The Fidelity Fund is a fund of last resort. Prospective claimants should first take steps to recover their loss from all other available sources before lodging a claim. A claim may be reduced by an amount that (in the opinion of the Legal Contribution Trust) is likely to be paid to or received by them from other sources.

What we do

What is pecuniary loss?

Pecuniary loss is either:

  • the amount of trust money or value of trust property that was not paid or delivered; or

  • the amount of money that a person loses as a result of a fraudulent dealing.

All of the following requirements must be satisfied for a default to be proven:

  1. ​A failure by a law practice to pay or deliver trust money or trust property or a fraudulent dealing with trust property.

  2. The trust money or trust property must have been received by the relevant law practice (or an associate of the law practice) in the course of legal practice.

  3. The law practice’s failure to pay or deliver trust money or trust property, or the fraudulent dealing with trust property, must have arisen from an act or omission of an associate that involved fraud or other dishonesty.

What are the requirements for a default?

Who may make a claim?

Any person (whether real or corporate) who has suffered a loss because of a default or a fraudulent dealing with trust property, by a law practice, may make a claim on the Fidelity Fund by completing an approved form which can be obtained by emailing lct@lawsocietywa.asn.au.

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Further information on making a claim can be found in the Information Brochure

The Legal Contribution Trust may advertise in the West Australian or on the ‘Current Notices’ page if a final date has been set for receipt of Fidelity Fund claims against a law practice.

 

Claims must be received by the Legal Contribution Trust no later than the final date fixed in the advertisement. A late claim will only be considered if the Trust allows further time.

Advertisement for Claims

What are the time limits for making a claim?

Claims must be lodged by the later of: 

(a) if the Legal Contribution Trust has not advertised a final date for receipt of Fidelity Fund claims against a law practice - within 6 months after a person becomes aware of the default; or 

(b) if the Legal Contribution Trust has advertised a final date for receipt of Fidelity Fund claims against a law practice - by 5 pm on the final date; or 

(c) if the Legal Contribution Trust allows a further period of time for making a claim - within that period .

Claims are investigated pursuant to the Legal Profession Uniform Law (WA).

A claim may be determined by the Trustees wholly or partly allowing it or disallowing it. A claim against the Fidelity Fund must be determined independently, at
arm's length from the legal profession.

Further information on the determination of claims is provided in the Fidelity Authority Statement and Information Brochure.

Investigation of claims

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