442   Determination of claims

(1)  The Law Society Council must determine a claim by wholly or partly allowing or disallowing it.

(2)  The Law Society Council must disallow a claim to the extent that the claim does not relate to a default for which the Fidelity Fund is liable.

(3)  The Law Society Council may wholly or partly disallow a claim, or reduce a claim, to the extent that:

(a)  the claimant knowingly assisted in or contributed towards, or was a party or accessory to, the act or omission giving rise to the claim, or

(b)  the negligence of the claimant contributed to the loss, or

(c)  the conduct of the transaction with the law practice in relation to which the claim is made was illegal, and the claimant knew or ought reasonably to have known of that illegality, or

(d)  proper and usual records were not brought into existence during the conduct of the transaction, or were destroyed, and the claimant knew or ought reasonably to have known that records of that kind would not be kept or would be destroyed, or

(e)  the claimant has unreasonably refused to disclose information or documents to or co-operate with:

(i)  the Law Society Council, or

(ii)  any other authority (including, for example, an investigative or prosecuting authority),

      in the investigation of the claim.

(4)  Subsections (2) and (3) do not limit the Law Society Council’s power to disallow a claim on any other ground.

(5)  Without limiting subsection (2) or (3), the Law Society Council may reduce the amount otherwise payable on a claim to the extent the Council considers appropriate:

(a)  if satisfied that the claimant assisted in or contributed towards, or was a party or accessory to, the act or omission giving rise to the claim, or

(b)  if satisfied that the claimant unreasonably failed to mitigate losses arising from the act or omission giving rise to the claim, or

(c)  if satisfied that the claimant has unreasonably hindered the investigation of the claim.

(6)  If the amount of a claim does not exceed $2,500 or such other amount as may be prescribed by the regulations, the Law Society Council may allow the claim after waiving compliance with such of the provisions of this Part as it thinks fit.

(7)  The Law Society Council must, in allowing a claim, specify the amount payable.