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Home / Business / Economy / Employment

Sasha Borissenko: Santa’s 2023 naughty list of lawyers

Sasha Borissenko
By Sasha Borissenko
NZ Herald·
24 Dec, 2023 02:00 AM4 mins to read

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It’s been a year of cracking down on legal creeping, ensuring lawyers do what they’re told, and reminding people not to dip into the client trust account. Photo / Alex Cairns

It’s been a year of cracking down on legal creeping, ensuring lawyers do what they’re told, and reminding people not to dip into the client trust account. Photo / Alex Cairns

Sasha Borissenko
Opinion by Sasha Borissenko
Freelance journalist who has reported extensively on the law industry
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OPINION

It was the best of times, it was the worst of times for some of the lawyers in this country who suffered the wrath of the New Zealand Lawyers and Conveyancers Disciplinary Tribunal this year.

To start, it’s a tale as old as time. Wayne Revell, Alwyn O’Connor and Takena Stirling were struck off for misappropriating or misusing client funds.

Auckland lawyer Lizandra Bailey was fined $15,000 and censured in December after failing to recognise and appropriately manage conflicts while acting for two clients.

“This is a cautionary tale about a competent lawyer who got enmeshed in the nightmare web of client conflict”, the decision read in a very Dickensian fashion.

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“It was a grim tale, leading inexorably to regrets and self-doubt. A common tale, it starts so easily. Both parties want the same outcome, so what could go wrong? In this case, it went wrong and got worse. And worse.”

Despite extensive experience, no prior disciplinary history and an excellent reputation, Bailey failed to obtain informed consent to act for a client involving a franchising agreement.

She continued to act where there was a more than negligible risk of two of her clients conflicting, and by intervening in the proceedings, it’s of little surprise one client benefited greatly over the other.

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There was no personal benefit, but the tribunal noted it needed to make an example of the case for the better guidance of lawyers and the safety of their clients.

Auckland lawyer Philip Sheat was suspended for six months, censured and ordered to pay compensation and costs for inflating his fees by $19,500 and failing to send said invoices to his client in November.

“[Sheat] cannot avoid the inference that he deliberately concealed his incremental depletion of his client’s capital by withholding the invoices. We regard this as cynical and self-serving. As a seasoned lawyer, he knew he should account to his client. He had no authority to deduct his fees and simply helped himself,” the decision read.

Palmerston North’s Jeremy McGuire was suspended from practising for four months, censured and ordered to pay costs and $3000 each to clients in October for “thumbing his nose” at the disciplinary institutions of his profession.

Essentially, two standards committees ordered McGuire to pay money to two clients and, disagreeing with those orders, the lawyer refused and pursued a personal and legal mission to to avoid payment.

A long-time naughty-corner resident, McGuire has had nine unsatisfactory conduct findings against him.

“This paints a picture of a practitioner who needs to take stock of himself and his professional practice,” the tribunal said. McGuire has since appealed the tribunal decision; go figure.

Auckland lawyer Marie Devoy and Papakura’s Robert John Burton, Gisborne’s Edward Alexander Hunt and Neshia Holdaway were either suspended or struck off (in the case of Holdaway) for failing to comply with standards committee orders.

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Auckland lawyer Murray Tingey was fined $15,000 and censured for charges relating to “inexcusable and reprehensible conduct” towards a colleague, Ms X, with whom he was in an intermittent personal relationship.

“Your actions contributed to a significant and, temporarily at least, detrimental career move by Ms X - that was grossly unfair to her,” the censure described.

“You failed to manage your behaviour in a manner expected of a member of the legal profession. In doing so, you let yourself and your profession down.”

In his defence, Grant Illingworth KC said enormous damage was done to Tingey’s reputation by inaccurate news reporting that Ms X was a “junior colleague”.

Throughout the hearing, the tribunal found there was no power imbalance and his conduct was not predatory, the decision read.

Tingey lost his partnership status, accrued legal costs of $500,000, had to undergo a three-year investigation, was vilified and lost friends and colleagues, his lawyer argued.

Finally, Christchurch’s Richard Dean Palmer was suspended for 18 months, censured and ordered to pay costs, as well as $10,000 in compensation, for three charges of sexual harassment in April.

Although the tribunal recognised Palmer’s otherwise positive contributions to the profession, Palmer’s trivialising his conduct by describing it as “silly”, “unwise” and “misguided” didn’t align well with the impact on the women involved, the decision read.

The moral of the story? It’s been a year of cracking down on legal creeping, ensuring lawyers do what they’re told, and reminding people not to dip into the ol’ client trust account.

Any blurring of ethical lines can be best dealt with by a good pair of above-board glasses from the optometrist. Meri Kirihimete everyone!

Sasha Borissenko is a freelance journalist who has reported extensively on the legal industry.

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