Ministry of Justice

Review / Committee found unsatisfactory conduct/ trust and relationship property matters / complaint lawyer failed to explain trustee duties and provide competent advice, failed to inform trustee they had been removed as a trustee, and acted for more than one client / provided advice to both husband and wife / Lawyers and Conveyancers Act 2006, section 12(a) / HELD / review of liability determination / lawyer must be proactive in offering advice or ensuring independent advice / lawyers can owe fiduciary duties to non-clients / no evidence lawyer provided wife with advice regarding significance of family home being owned by a trust (taking it outside of relationship property pool) or of power of appointment and removal of trustees and the associated risks if marriage ended / breach of fiduciary duty / Committee’s decision confirmed but modified to include further unsatisfactory finding conduct pursuant to section 12(c) for rule breaches related to fiduciary duties / section 211(1)(a)

Complaint / Committee determined to take no further action on complaint / breaches of franchise agreement / complaint lawyers’ advice was negligent and that fees were excessive and no estimate was provided/ fee complaint / Auckland Standards Committee No 3 v Castles [2013] NZLCDT 53 / Lawyers and Conveyancers Act (Lawyers: Conduct and Client Care) Rules 2008, rule 3 / rule 9 / rule 9.1 / rule 9.4 / HELD / complainant defaulted on various obligations when instructing lawyers / no right or wrong approach to litigation strategy / test for unsatisfactory conduct involves competence and diligence / no evidence of professional standards issue regarding advice / complainant did not request an estimate / although Committee did not appoint a costs assessor, it would have been reasonable for lawyers to consider an uplift in the circumstances of the retainer / this mitigates complaint that fees rendered were excessive / Committee’s decision confirmed / section 211(1)(a)

Complaint / Committee declined to take further action on complaint / settlement of estate dispute / complaint lawyer did not act competently preparing complaintant’s mother’s will to protect family property from claims / Davis v Mancer [2015] NZHC 3005 / SY v LT LCRO 1/2018 (December 2019) / JR v ST LCRO 57/2015 (December 2016) / Family Protection Act 1955 / Lawyers and Conveyancers Act 2006, section 351 / Lawyers and Conveyancers Act (Lawyers: Conduct and Client Care) Rules 2008, rule 3 / HELD / certain conduct occurred more than six years before 1 August 2008, no jurisdiction / non-clients are owed limited duties / no evidence produced that lawyer failed to advise complainant’s mother to protect her property from relationship property/family protection claims / allegations of negligence must be tested in civil courts / Committee’s decision modified to record that any further action on the complaint is unnecessary or inappropriate / Committee’s decision otherwise confirmed / section 2…

Complaint / Committee declined to take further action on complaint / responsibility for invoices regarding mortgage defaults / complaint lawyer falsely asserted complainant was in default of mortgage, and issued two invoices complainant was not responsible for / Lawyers and Conveyancers Act 2006, section 12(a) / HELD / lawyer relied on client’s advice as to the facts when issuing one erroneous invoice / mistake quickly acknowledged, isolated error / no breach of section 12(a) / liability for other invoice currently before the courts / no evidence of breach of professional standards / Committee’s decision confirmed / section 211(1)(a)

Review / Committee declined to take further action on complaint / sale and purchase of commercial property / complaint lawyer breached undertaking / delay in providing lease documents / Auckland Standards Committee 3 v W [2011] 3 NZLR 117 (HC) / W v Auckland Standards Committee 3 [2012] NZCA 401 / Lawyers and Conveyancers Act (Lawyers: Conduct and Client Care) Rules 2008, rule 10.3 / HELD / undertaking said lease documents would be provided on completion of settlement / lawyer did not search files in response to inquiries / provided documents 5 weeks later / breach of rule 10.3 / Committee’s decision reversed / $1,000 fine and costs ordered / section 211(1)(a)

Review / Committee declined to take further action on complaint / trust dispute / complaint lawyer had a conflict of interest and did not adequately administer trust/ Lawyers and Conveyancers (Lawyers: Conduct and Client Care) Rules 2008, rule 8.7.1 / HELD / complainant consented to lawyer acting for trust/ no evidence of disclosure of client information that would adversely affect complainant / complainant may apply to High Court to compel lawyer to perform trustee duties / Committee’s decision confirmed / section 211(1)(a)

Jurisdiction / Committee found unsatisfactory conduct / whether application lodged out of time / Lawyers and Conveyancers Act 2006, section 198 / Epidemic Preparedness Act 2006, schedule 2 / D v T LCRO 36/2009 (27 March 2009) / LCRO 190/2017 (6 November 2017) / KX v WA LCRO 84/2012 (30 April 2012) / 30 working day time limit / discretion to extend time limit / whether LCRO a tribunal / HELD / no reason to extend time limit / application for review lodged out of time / LCRO has no jurisdiction to consider application

Date of decision: 9 June 2020

Complaint / Committee declined to take further action on complaint / professional discipline proceedings / complaint lawyer lied to Standards Committee and LCRO in earlier complaint / HELD / no evidence of professional standards issue / Committee’s decision confirmed / section 211(1)(a)

Complaint / Committee declined to take further action on complaint / Family Court proceedings / complaint lawyer instructed self-represented litigant to communicate directly with their client in breach of protection order / Lawyers and Conveyancers Act (Lawyers: Conduct and Client Care) Rules 2008, rule 12 / rule 12.1 / Burgess v Tait [2014] NZHC 2408 / Chapman v Legal Complaints Review Officer [2015] NZHC 1500 / HELD / lawyer volunteered to pass on emails to the client in court, then withdrew that offer later / either insincere, or discourteous and unprofessional to cease forwarding emails and advise to deal with lawyer’s client directly, without prior discussion with complainant and notification to the court / as complainant unrepresented, should have informed her of her right to take legal advice / by finest margin, no adverse finding made / Committee’s decision confirmed / section 211(1)(a)

Complaint / Committee declined to take further action on complaint / Family Court proceedings / complaint lawyer suborned perjury / HELD / no evidence of professional standards issue / complaint discloses no reasonable cause of action / application for review struck out / section 205(1)(a)

Complaint / Committee declined to take further action on complaint / advice to trustees and construction contract dispute / complaint lawyers did not act competently or protect the trust’s interests, did not complete matters in a timely way, and improperly terminated retainer / Construction Contracts Act 2002 / HELD / basis of complaint and disciplinary process is to maintain professional standards, not loss recovery / client requested lawyers establish a trust, and lawyers provided competent advice on the trust / lawyers were only consulted intermittently throughout development project, and without enough time to issue a payment schedule / litigation strategy pursued to establish a basis for settlement / trust partially succeeded in construction contract dispute / lawyers did not lack competence or diligence / lawyer terminated retainer appropriately due to conflict of interest between trustee company and other trustees / Committee’s decision confirmed / section 211(1)(a)