A pillar of the Central Hawke's Bay community has resigned from a Waipukurau law firm amid accusations from a client of financial impropriety.
Former Central Hawke's Bay mayor Hugh Hamilton, a partner and director of law firm DAC Legal (Davidson Armstrong & Campbell), stepped down on June 30, said the firm's director, John Campbell.
In a statement sent to clients, Mr Campbell said Mr Hamilton's "personal financial difficulties had begun to affect his professional judgment", yet was quick to claim that trust account funds had not been affected.
"We are in the process of reviewing Hugh's current files and are assigning them to other lawyers in the firm," he said.
"Our review of the trust account has not revealed any anomalies."
But director of Hawke's Bay company Mertzon Forestry Ltd, George Matthews, said his company had recently lost money through dealings with Mr Hamilton. He told Hawke's Bay Today he had since engaged lawyers, and "the gloves are off". While continuing to trade, he said his company was "not letting a little-town lawyer walk over us". "We have contracts to honour and we are honourable people."
Mr Hamilton was the first mayor of Central Hawke's Bay District Council from 1989-95 after it was formed from the amalgamation of smaller councils.
He was previously a member of the Waipukurau District Council and a past-president of the Waipukurau Rotary Club.
Mr Campbell said he did "not anticipate any problems" following a Law Society audit, which he expected to be done in due course.
Mr Hamilton refused to comment last night.
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