The Independent Legal Services Commission (ILSC) has dismissed a claim by the Arya Pratinidhi Sabha of Fiji (APS) seeking reimbursement of $20,000 from the Legal Practitioners Fidelity Fund.
The claim was made under section 23 of the Trust Accounts Act 1996 and related to a land sale transaction involving MC Lawyers.
The $20,000 in question was paid into MC Lawyers’ trust account as a deposit for a land sale that later collapsed due to litigation between APS and Amalgamated Telecom Holdings Ltd (ATL).
The funds remain unrecovered due to the firm’s receivership.
In his ruling, Commissioner Justice Daniel Goundar said the APS had failed to prove that the loss resulted from “stealing or fraudulent misappropriation” by a legal practitioner or their staff — a key requirement under the Act.
“The evidence does not establish the specific statutory wrong that activates section 23,” Justice Goundar said.
“While the trust account was overdrawn and records were deficient, there is no clear proof of theft or misappropriation.”
Justice Goundar emphasised that the Fidelity Fund serves as a last-resort mechanism, and claimants must first exhaust all other legal remedies.
“Allowing payments for claims not strictly within the statutory mandate risks unfair depletion of the fund and sets a precedent for imprudent claims,” he said.
The Commission therefore declined the claim, concluding that the loss, though unfortunate, did not arise from proven fraudulent or criminal conduct.
