Lawyer struck off, told to refund clients

Hastings lawyer David Porteous, who turned in his practicing certificate last month amid an inquiry into the use of a family's trust fund, has now been struck off the roll of barristers and solicitors and ordered to refund a total of $34,455 to two other clients who had been over-charged.

The Lawyers and Conveyancers Disciplinary Tribunal also ordered Porteous to pay $10,000 as a contribution to the New Zealand Law Society costs for proceedings in which he pleaded guilty to three charges of misconduct and two of unsatisfactory conduct.

Society president Kathryn Beck, of Auckland, said the proceedings leading to this week's decision were referred to the tribunal by a standards committee in December last year, relating to activity between 2010 and 2012, and including a client who had used the services of Mr Porteous since 2005.

They do not relate to separate concerns raised by Hastings man over so far unsuccessful attempts to retrieve funds from a family trust operated through the Porteous law firm which closed five weeks ago.

The society has also had other complaints.

Two of the misconduct charges involved what the society said was unacceptable billing and file management practices in respect of two clients.

The unsatisfactory conduct charges involved rendering fees to the same two clients that were deemed to be not fair and reasonable.

The third misconduct charge related to a different client and involved a breach of trust account regulations by deducting dormant balances.

The tribunal ordered Mr Porteous to reduce his fees and refund the two clients $22,500 and $11,955 respectively.

Ms Beck said the Lawyers and Conveyancers Act (Trust Account) Regulations 2008 set strict rules for the handling of clients' trust accounts "which must be followed".

Rules of Conduct and Client Care set guidelines to ensure many factors are taken into account in determining a reasonable fee in return for any service provided by a lawyer to a client, she said.

"A lawyer must not charge a client more than what is fair and reasonable," she said.

"To determine this, certain factors are taken into account such as time and labour, the importance, urgency and complexity of the work, the experience of the lawyer as well as whether it is fixed or conditional," Ms Beck said.

Mr Porteous, aged 63, and a lawyer in Hawke's Bay for 32 years, handed in his legal practicing certificate early last month amid inquiries into other matters.