Attorneys Fidelity Fund Board of Control v Claassens (A620/2011)
Attorneys Fidelity Fund Board of Control v Claassens (A620/2011) [2012] ZAWCHC 376 (4 December 2012)
The court held that the money paid by the respondent into Minnie's trust account was an investment within the meaning of section 47(1)(g) of the Attorneys Act, as the arrangement was designed to yield a profit through a high rate of interest. The provisions of section 47(5)(a), (b), and (c) must be read together, not disjunctively. On the facts, the respondent did not specify the borrower, and Minnie advised on the loan terms, bringing the transaction within the exclusionary scope of section 47(5)(c). Therefore, the Fidelity Fund is not liable to reimburse the respondent for the stolen funds.…
Source excerpt
- Attorneys Act Section 47
- Trust Account Liability
- Investment Vs Loan Scheme
- Fidelity Fund Exclusion