sec.391External examiner guilty of neglect

### sec.391 External examiner guilty of neglect This section applies if— an external examiner is guilty of neglect in relation to an external examination of the trust records of a law practice and there has been a default in relation to the law practice; and the law society pays an amount from the fidelity fund to reimburse persons who suffered loss because of the default. The law society has an action for damages against the external examiner in relation to the external examination. The right of action is similar to the action for damages that the law practice, or any legal practitioner associate of the practice, would have had against the external examiner. If the default arises from or is constituted by an act or omission of the law practice, or 1 or more legal practitioner associates of the law practice, subsection (2) applies as if the default arises from or is constituted by an act or omission of a lay associate of the law practice. The amount of damages the law society may claim under this section must not be more than the total amount paid from the fidelity fund to reimburse all persons who suffered loss because of the default. (sec.391-ssec.1) This section applies if— an external examiner is guilty of neglect in relation to an external examination of the trust records of a law practice and there has been a default in relation to the law practice; and the law society pays an amount from the fidelity fund to reimburse persons who suffered loss because of the default. (sec.391-ssec.2) The law society has an action for damages against the external examiner in relation to the external examination. (sec.391-ssec.3) The right of action is similar to the action for damages that the law practice, or any legal practitioner associate of the practice, would have had against the external examiner. (sec.391-ssec.4) If the default arises from or is constituted by an act or omission of the law practice, or 1 or more legal practitioner associates of the law practice, subsection (2) applies as if the default arises from or is constituted by an act or omission of a lay associate of the law practice. (sec.391-ssec.5) The amount of damages the law society may claim under this section must not be more than the total amount paid from the fidelity fund to reimburse all persons who suffered loss because of the default. - (a) an external examiner is guilty of neglect in relation to an external examination of the trust records of a law practice and there has been a default in relation to the law practice; and - (b) the law society pays an amount from the fidelity fund to reimburse persons who suffered loss because of the default.