Ministry of Justice

Review / Committee declined to take further action / relationship property and estate matter / complaint opposing lawyers did not comply with the relevant rules when paying the legacies and charged unreasonable fees / Lawyers and Conveyancers Act (Lawyers: Conduct and Client Care) Rules 2008, rule 3.4 / rule 3.5 / Lawyers and Conveyancers Act 2006, section 351 /section 192(b) / Solicitors Trust Account Rules 1996, rule 5.8 / Trust Account Regulations 2008, regulation 12 / HELD / resolution proposed by the LCRO / no adverse finding against the lawyers / lawyers to make relevant payments to the applicants if proposal is accepted / application for review struck out / section 205(1)(a)

Complaint / Committee declined to take further action / relationship property dispute / complaint lawyers acted in a misleading manner, gave false information and breached professional obligations / Lawyers and Conveyancers Act (Lawyers: Conduct and Client Care) Rules 2008, rule 13.5.1 / rule 13.5.3 / Lawyers and Conveyancers Act (Lawyers: Complaints Service and Standards Committees) Regulations 2008, regulation 9 / HELD / Complaints Service did not forward a copy of complaints to lawyers as complaint followed Early Resolution Service process / parties agreed not to send complaint back for reconsideration / evidence does not support lawyer misleading LCRO / court controlling proceedings rejected argument that lawyer was in conflict, which answers r 13.5 complaint / using legitimate court process is not underhanded / LINZ satisfied lawyer entitled to use LandOnline licence / other concerns appropriately addressed in other forums / Committee’s decision confirmed / section 211(1)(a) 

Complaint / Committee declined to take further action / litigation / complaint opposing lawyer communicated directly with represented client / Lawyers and Conveyancers Act (Lawyers: Conduct and Client Care) Rules 2008, rule 10.2 / HELD / lawyer wrote directly to complainant about matters they were both represented and unrepresented in / one paragraph directed to represented matter / did not undermine principle behind r 10.2 / Committee considered this a technical breach of r 10.2 / breach does not require disciplinary response, complaint serves as a reminder of scrupulous adherence to rules / Committee’s decision confirmed / section 211(1)(a)

Review / Committee found unsatisfactory conduct / own-motion investigation following confidential report that on two occasions, lawyer inappropriately touched employees without consent / NZLS applied to review culpability determination / whether conduct should have been referred to LCDT / whether LCRO should lay charges / HELD / conduct occurred after work-related social event / constitutes conduct connected with regulated services / culpability inquiry should not generally consider external factors such as lawyer’s personal circumstances or matters unconnected with alleged breach / Committee incorrectly allowed unrelated mitigation issues to affect assessment of culpability / these factors more appropriately considered in penalty / Committee’s examination of whether force was used in incidents is incomplete / use of force requires careful and critical assessment / Committee directed to reconsider culpability for conduct without considering unrelated mitigation issues / section 209

Review / Committee found unsatisfactory conduct / estates and relationship property / complaint lawyer incorrectly advised about a settlement offer and advice was disclosed without consent to other side / lawyer sought to reverse remaining orders of $3,000 fine and requirement for further training / HELD / conduct unsatisfactory / no basis to interfere with order to pay client’s costs / fine appropriate as conduct fell short of competence public is entitled to expect of a reasonably competent lawyer / further training unnecessary / problems with conduct not directly related to estate administration issues / lengthy career / LCRO confident complaints process gave lawyer pause to reflect on issues / Committee had not yet decided on name publication / Committee to be informed of review / parties can seek review of publication decision without filing formal review application or paying filing fee / Committee’s decision on training reversed / Committee’s decision otherwise confirmed / secti…

Complaint / referral to Lawyers and Conveyancers Disciplinary Tribunal / own motion investigation / alleged sexual harassment and breach of alcohol policy / Lawyers and Conveyancers Act 2006, section 7 / section 12 / section 154 / section 158 / section 204 / Lawyers and Conveyancers Act (Lawyers: Conduct and Client Care) Rules 2008, rule 10 / HELD / no need to seek Committee’s reasons for referral / conduct was unsatisfactory and capable of misconduct finding / events captured by “regulated services” / even if not, covered by other provisions / covered by r 10 / comparison with prior Committee decision of no assistance / alcohol consumption could have compromised safety of clients, staff or others / conduct of a sexual nature could potentially be misconduct / visiting adult store with female clerks / inappropriate touching / “flirty” emails to more junior solicitor / facts of one instance disputed, appropriate for Tribunal to assess conduct / Committee’s decision confirmed / section 21…

Complaint / Committee found unsatisfactory conduct / censure and $10,000 fine / civil litigation / complaint lawyer failed to draft and file proceedings within appropriate time frame, allowing other party to advance Limitation Act defence / HELD / lawyer did not seriously challenge unsatisfactory conduct finding / contended penalties were unduly harsh / lawyer displayed casual indifference to obligation to advance and protect client’s interests / conduct at the high end of unsatisfactory but did not reach threshold for referral to Disciplinary Tribunal / censure was not unreasonable or disproportionate / lawyer failed to act on client’s instructions for a long time and was oblivious to requests for updates and explanations for delay / delay approached unconscionability / length of delay, lawyer’s indifference to advancing client’s case, and unconvincing explanations for conduct support argument for significant fine / Committee’s decision confirmed / section 211(1)(a)

Review / Committee declined to take further action / employment proceedings / complaint fees were excessive / lawyer provided final invoice late / lost data relating to client file / did not keep client properly informed about costs / allowed personal issues to dominate certain client communications / Privacy Act 2020, section 22, Information Privacy Principle 5 / Lawyers and Conveyancers Act (Lawyers: Conduct and Client Care) Rules 2008, rule 9.1 / rule 9.6 / HELD / LCRO could not determine whether lawyer managed document and email management systems efficiently / unreasonable delay in providing final invoice / personal issues did not excuse obligations to clients / Committee overlooked delay before COVID-19 lockdown / additional aggravating delay after Alert Level 2 restrictions began / fees fair and reasonable for work undertaken / Committee’s decision modified to find breach of rule 9.6 / Committee’s decision otherwise confirmed / section 211(1)(a)

Review / Committee found unsatisfactory conduct / residential property transfer / complaint lawyer acted for both parties in transaction, that complainant was unwell, that complainant had not signed transfer documents, that lawyer did not advise complainant of potential steps following discovery of forged signature, and that complainant incurred significant loss attempting to rectify matters / complainant unsatisfied with Standards Committee compensation order / Lawyers and Conveyancers Act 2006, section 156(1)(d) / HELD / despite lawyer’s actions and omissions, it cannot be established that complainant would not have proceeded with the transaction had those actions or omissions not taken place / inadequate evidence on complainant’s lack of capacity / appropriate to award compensation for impact of the transaction / Committee’s decision modified to impose $3,000 fine in addition to fine imposed by Standards Committee / Committee’s decision otherwise confirmed / section 211(1)(a)

Complaint / Committee declined to take further action / enduring powers of attorney (EPOA) / complaint lawyer witnessed person’s signature on EPOA and provided certificates without ascertaining whether person had appropriate mental capacity to understand the EPOA / Protection of Property and Personal Rights Act 1988, section 93B / Sandman v McKay [2019] 1 NZLR 519 (SC) / Lawyers and Conveyancers Act (Lawyers: Conduct and Client Care) Rules 2008, rule 2.5 / rule 2.6 / HELD / presumption under PPPRA means lawyer did not need to seek medical assessment of person prior to signing of the EPOA / no evidence supporting a view that lawyer’s certificates were not a true record of advice provided to person / no direct evidence that person’s statements were enough to put lawyer on notice that person lacked capacity to understand the effects and implication of the EPOA / Committee’s decision confirmed / section 211(1)(a)

Complaint / Committee found unsatisfactory conduct / property transaction / complaint lawyer continued to be involved in client’s family’s affairs, decision should be published, client should be compensated, and lawyer should be prohibited from involvement in matters / review application by lawyer challenging penalties and in response to complainant’s application / Lawyers and Conveyancers Act 2006, section 156(1)(i) / Wislang v Medical Council of New Zealand [2002] NZCA 39 / Daniels v Complaints Committee 2 of the Wellington District Law Society [2011] 3 NZLR 850 / Workington v Sheffield LCRO 55/2009 (26 August 2009) / J v NZ Psychologist Board HC Wellington AP 34/01 (11 July 2001) / HELD / LCRO cannot stop lawyer representing client or being involved with trusts / no evidence requiring further compensation / Committee fine modest for conduct breaches, but no reasons to interfere / anonymised publication serves public interest / Committee’s decision confirmed / section 211(1)(a)

Complaint / Committee declined to take further action / estate administration / complaint lawyers, as executors of the estate, failed to promptly invest proceeds from sale of property at appropriate interest rate, lawyers’ fees were excessive, lawyers failed to communicate with trustees over placement of sale funds and sale of property, and lawyers contributed to delay in settling sale of property / Lawyers and Conveyancers Act 2006, section 132 / section 111(1) / section 114 / Lawyers and Conveyancers Act (Lawyers: Conduct and Client Care) Rules 2008, rule 3 / HELD / lawyers’ decision not to invest sale proceeds in higher-interest account reasonably made and within their discretion / Committee’s decision confirmed / section 211(1)(a)