Ministry of Justice

Liability / two charges of misconduct / practitioner convicted of offence which reflects on fitness to practise or tends to bring profession into disrepute / made thirteen irregular transfers of money from trust account to practice account / allowed trust account balance to drop below sum he was obligated to retain pending completion of work / Lawyers and Conveyancers Act 2006, section 110 / section 112 / Trust Account Regulations 2008, reg 6 / reg 9 / reg 11 / reg 12 / HELD / practitioner admitted first charge / convicted for evading income tax for ten years / transferring trust monies while confused about what sums he was entitled to was not proper practice / retention funds remained client’s property pending settlement and must be retained wholly in trust account / practitioner’s actions were wilful as he knew trust monies must be held for client but intentionally transferred them to practice account for personal use / charges proven / parties to file penalty submissions

Liability / criminal sentencing proceedings / practitioner falsely stated on invoice the cost of a drug assessment report / when client was assigned a new lawyer, destroyed the report and failed to inform new lawyer or court that report was completed / filed misleading memorandum stating report not complete / Conduct and Client Care Rules 2008, rule 3.1 / rule 5.1 / HELD / practitioner deliberately lied to client / used misleading communication about cost of report for own pecuniary interests when client was vulnerable / deleting report not a proper way to deal with client’s information / could have alerted new lawyer about report / continued to owe legal and fiduciary duties to client until relieved of role by new lawyer / client denied litigation advantage of the report at critical point / filing of memorandum not misleading as it was correct at time of filing / first two charges proven at level of misconduct / third charge dismissed / parties to file penalty submissions

Liability / three charges of misconduct for failure to comply with section 147 notice in relation to four clients / practitioner failed to inform clients or give effect to instructions in a timely manner / clients instructed new lawyers and lodged complaints / Standards Committee required practitioner to provide documents in relation to clients’ files and gave multiple extensions and reminders / Lawyers and Conveyancers Act 2006, section 147 / HELD / common theme between charges is practitioner’s lack of engagement with her governing body / Committee’s requests for practitioner to provide information were reasonable / practitioners have basic professional obligation to co-operate with Law Society and provide accurate information / practitioner’s failures to respond to Committee were inexcusably tardy / practitioner’s responses were only partial / despite COVID-19 restrictions, ample time was given to comply with requests / misconduct found / parties to file penalty submissions

Liability / two charges of misconduct / practitioner mocked LCRO’s order to apologise / tardy estate distribution / funds left on interest-bearing deposit for years after earlier prompt by disciplinary system / Conduct and Client Care Rules 2008, rule 2.3 / rule 2.10 / rule 3 / rule 10 / rule 12 / HELD / apology not compliant with order / practitioner pretended to perform an apology / no acknowledgement of wrongdoing / purposely drafted apology letter to mock order, insult LCRO, convey no remorse and designed to withhold vindication to complainant / conduct disgraceful or dishonourable / practitioner held special responsibility and power as sole executor / seven-year delay in distributing final sum, even after prompt from earlier complaint, unacceptable / both misconduct charges proved / permanent name suppression for complainants and clients / parties to file penalty submissions

Liability / two charges of misconduct / practitioner acted on two loan agreements where he provided funds to a client, acting for both parties / contravened trust accounting regulations / Conduct and Client Care Rules 2008, rule 5.4 / rule 5.4.3 / rule 6.1 / HELD / reckless disregard of rules against acting in conflict of interest or duties / misconduct charge proved / trust account errors regarded as breach simpliciter / negligence not established / practitioner not the only lawyer responsible for trust account / unsatisfactory conduct found / parties to file penalty submissions

Liability and penalty / divorce proceedings / practitioner arranged sale and buy-back of her relationship property / misled Family Court by not disclosing her beneficial interest in the property, after declaring she had no interest in it other than as tenant / misconduct or conduct unbecoming of a barrister / Law Practitioners Act 1982, section 112(1)(a) / section 112(1)(b) / Lawyers and Conveyancers Act 2006, section 7(1)(a) / HELD / Tribunal found conduct unbecoming of a barrister / misleading a court by omitting information considered serious / mitigating factor that practitioner had personal and psychological factors surrounding conduct / acknowledged wrongdoing / conduct historic / acted in personal capacity / conduct at less serious level of spectrum / Tribunal ordered $5,000 fine / practitioner to pay $5,000 of Standards Committee’s costs and 50 per cent of Tribunal’s costs

Liability / practitioner lodged notice of claim against property for vendor client in direct conflict with vendor’s sister who was one of the purchasers and also a client of practitioner’s firm / property sold at reserve price then on-sold by purchasers for profit / practitioner prepared amended enduring power of attorney for vendor certifying self as independent / misconduct, negligence or unsatisfactory conduct / Conduct and Client Care Rules 2008, rule 3 / rule 5 / rule 5.1 / rule 5.2 / rule 5.3 / rule 6.1 / HELD / web of conflict of interests discernible / client not asked to get independent advice or sent away as required / practitioner did not heed warning of undue influence of client by sister / ought to have ensured vendor fully understood sister’s intentions / not properly independent when power of attorney amended / intended to protect client but failed to appreciate red flags and risks to her / negligence proved (section 241(c)) / parties to file penalty submissions

Penalty / misconduct for breach of fiduciary duties / failure to maintain adequate records in managing parents’ estates and affairs / failure to account / HELD / practitioner’s level of misconduct relatively serious / mitigating features include references, only having one complaint upheld over 35 years and deteriorating health / misconduct not falling within regulated services not a mitigating feature / no lesser standard for private business dealings / aggravating features include ongoing failure to account and no remorse, insight or apology / practitioner’s misconduct not isolated as misapplication of estate funds occurred across multiple transactions and many years / practitioner’s deteriorating health and lack of judgment and understanding of basic legal principles relevant to fitness to practise / Tribunal unable to find path for practitioner to be brought back to safe practice / Tribunal ordered practitioner be struck off  

Liability and penalty / first charge of misleading clients and avoiding communication on botched conveyancing matter / second charge of avoiding resolution of LINZ queries about three e-dealing certifications / third charge of failing to be frank to Law Society when declaring he was fit and proper by disclosing only one fine but not others / Lawyers and Conveyancers Act 2006, section 4(a) / Conduct and Client Care Rules 2008, rule 2 / rule 3 / rule 10 / rule 11 / HELD / conduct occurred while providing regulated services / first two charges proved as misconduct / third charge proved as unsatisfactory conduct / previous complaints upheld show practitioner’s practise as unreliable, insufficiently concerned about clients, unresponsive and unhelpful / lacks essential attributes of honesty, trustworthiness and integrity / not fit and proper / Tribunal ordered practitioner be struck off and pay $2,327.60 compensation / practitioner to pay Standards Committee’s and Tribunal’s costs  

Penalty / practitioner admitted one charge of unsatisfactory conduct / signed solicitor’s certificate when working as consultant, and sent engagement letters that failed to include information on name of firm acting, practitioner’s position in the practice, and exclusions of practice’s indemnity insurance / HELD / investigation against practitioner was over-zealous, offensive and inappropriate at times / practitioner committed minor infractions of rules / no harm came or was likely to come / practitioner should be restored to position practitioner would have been in had the matter been dealt with appropriately / censure or significant contribution to costs not proportionate responses / Tribunal ordered practitioner to pay $1,000 fine / practitioner to pay small contribution to Standards Committee’s costs ($1,000) / permanent name suppression granted

Charges / no case to answer / practitioner charged concerning five elderly clients / Hall v Wellington Standards Committee (No. 2) [2013] NZAR 743 (HC) / Lawyers and Conveyancers Act 2006, section 240A / HELD / necessary for Tribunal to determine whether evidence sufficient to establish charge / basis for misconduct charges not established / no evidential foundation for overcharging / satisfied client competent to give instructions / no jurisdictional impediment to Tribunal hearing remaining unsatisfactory conduct charges / Tribunal may strike out charges that do not justify disciplinary sanction / no disciplinary sanction required / no reasonable basis to find against practitioner on fee complaint / particulars alleging wrong-doing with Powers of Attorney disclose no reasonable cause of action / minor infractions might arise in any busy practice without alarm / all charges dismissed / Standards Committee must pay Tribunal costs / costs between parties reserved

Liability / misconduct in managing parents’ estates and affairs / conduct unconnected with the provision of regulated services / breaches of fiduciary duties (including profiting), failure to maintain adequate records, failure to account / whether fit and proper person or suited to practice as a lawyer / HELD / practitioner owed fiduciary duties administering estates and affairs / reckless in handling father’s estate, caused losses to estate / has never produced mother’s will / made unsecured loans to herself and sister, who were both financial risks / brother received no share of father’s estate / previous misconduct finding for not complying with s 147 notice / has not produced records to demonstrate distributions / under a duty to account / failed to have proper regard to siblings’ interests / failed to recognise extent she imperiled mother’s position and hampered brother’s ability to obtain residuary share / s 7(1)(b)(ii) test met / charges proven

Liability / duty to complete retainer / fees payment and security for fees / advice regarding legal aid, litigation risk and whether fees may exceed recovery / Lawyers and Conveyancers Act (Lawyers: Conduct and Client Care) Rules 2008, rule 4.2 / rule 9.5 / rule 11 / HELD / lawyers terminated retainer 4 weeks before JSC / not entitled to terminate, fees deferred and 7 day notice to pay arbitrary, left client stranded / did not fulfil fiduciary duties on termination  / s 7(1)(a)(ii) test met / client signed deed acknowledging debt, providing security, did not receive legal advice or explanation about effect / demand for payment and threatening interactions reprehensible / s 7(1)(a)(i) test met / failed to advise about possibility of legal aid and that fees may exceed recovery / should suggest client may be eligible for legal aid and refer to further resources / failed to re-evaluate litigation prospects once estate diminished / unsatisfactory conduct found s 12(a) / charges proved