1964_SOLICITORS_(PROFESSIONAL_INDEMNITY)_RULES — Page 17

1989 Ed.]

Solicitors (Professional Indemnity) Rules

[CAP. 159

M 17

[Subsidiary]

2.

for wrongful termination or any other alleged breach or any other relief in respect of any contract for supply to, or use by, the Practice or any member thereof of services, materials, equipment or other goods,

(ix) in respect of any undertaking given by any indemnified or on his behalf (whether in his own name or in the name of the Practice) to any person in connection with the provision of finance, property, assistance or other advantage whatsoever to or for the benefit of him or any other indemnified or of his or any other indemnified's spouse or children or of any business firm, company, enterprise, association or venture owned or controlled by him or any other indemnified in a beneficial capacity whether alone or in concert with others, except to the extent that he shall establish that any such undertaking was given by him or on his behalf without him knowing that the undertaking was or was likely to be connected with the provision of any such finance, property, assistance or other advantage.

Determination of limit of Indemnity

(1) The Indemnity covers that part of the indemnified's loss that exceeds the deductibles referred to in subparagraph (2) up to a sum not exceeding the difference between such deductibles and $5,000,000 in respect of any one claim.

(2) The deductibles for the purpose of subparagraph (1) are—

(a) where the indemnified is a sole practitioner at the relevant date, the first $30,000 in respect of any one claim;

(b) where the indemnified is a partnership, in respect of any claim against that partnership or its predecessors in business, the first $20,000 of any one claim multiplied by the number of principals in the firm at the relevant date;

(c) in addition to sub-subparagraph (a) or (b), $15,000 of any one claim multiplied by the number of assistant solicitors and consultants in the firm at the relevant date.

(3) Notwithstanding subparagraph (2), the aggregate of the amounts set out in subparagraph (2)(a) or (b) and (c) in respect of any firm shall not exceed the first $200,000 of any one claim.

3.

Extent of former solicitors Indemnity

(1) (a) Where a former solicitor ceased to be a solicitor in Practice in Hong Kong on or before 30 September 1986, he shall be provided with Indemnity for that part of his loss which exceeds the relevant amount set out in sub-subparagraph (b) up to but not exceeding the relevant amount set out in sub-subparagraph (c) in respect of any one claim.

(b) Such former solicitor shall not be provided with Indemnity by the Company in respect of—

(i) the first $20,000 of any one claim where he was in Practice as a sole practitioner at the date when he ceased to be a solicitor in Practice in Hong Kong;

(ii) the first $10,000 of any one claim where he was in Practice as a partner at the date when he ceased to be a solicitor in Practice in Hong Kong;

(iii) the first $5,000 of any one claim where he was in Practice as an assistant solicitor or consultant at the date when he ceased to be a solicitor in Practice in Hong Kong.

(c) The Indemnity under sub-subparagraph (a) shall not in respect of any one claim exceed the difference between the relevant amount set out in sub-subparagraph (b) and $5,000,000 or any of the following amounts, whichever is the smaller—

(i) if such former solicitor was in Practice as a sole practitioner immediately before he ceased to be a solicitor in Practice in Hong Kong, $550,000;

(ii) if such former solicitor was in Practice as a sole practitioner immediately before he ceased to be a solicitor in Practice in Hong Kong and one or more assistant solicitors or consultants were employed in the Practice, $550,000 plus an amount of $200,000 multiplied by the largest number of assistant solicitors and consultants employed at any one time in that Practice within the 12 months preceding the date on which the sole practitioner ceased to be a solicitor in Practice in Hong Kong;