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Home / New Zealand

Disorganised lawyer fined and suspended after 'train wreck' case leads to client's bankruptcy

Jeremy Wilkinson
By Jeremy Wilkinson
Open Justice multimedia journalist, Palmerston North·NZ Herald·
27 Oct, 2022 05:00 AM4 mins to read

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What should have been a simple process to get a client's classic car back turned into a legal nightmare. Photo / 123rf

What should have been a simple process to get a client's classic car back turned into a legal nightmare. Photo / 123rf

A lawyer has been suspended for a year after his "woeful" conduct caused his friend and client to spiral into a $15,000 debt and bankruptcy.

Stephen Potter's reprimand began with an attempt to help his friend with the legal logistics of retrieving a classic car from a garage that wouldn't give him access to the vehicle.

What followed was a series of bungled court hearings that eventually landed Potter before the Lawyers and Conveyancers Disciplinary Tribunal.

According to its decision released today, Potter was disorganised, failed to turn up to court hearings and neglected to file the relevant documents.

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It's not the first time Potter has been before the tribunal, having been temporarily banned from practising in 2014 after failing to cooperate with the Law Society, and again in 2018.

It was during this time that he tried to help a friend with a relationship property dispute, getting around his effective suspension by preparing the documents so the man could then represent himself.

His friend had been storing his classic car at a lock-up garage and when the company that owned the garage wouldn't let him in, the man went to Potter who advised him to send them an invoice and then enforce it if they didn't pay.

On Potter's advice the man then filed liquidation proceedings against the company and lost, leaving him owing almost $9000 in court costs.

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The company then took the man to court for failure to pay those costs.

But Potter's mate made another claim against the company for unjust enrichment of $26,000 plus interest, which it defended.

Potter prepared documents but they lacked an affidavit. He also didn't show up to the hearing which cost the client $4000.

The company then filed bankruptcy proceedings against the man for his failure to pay the costs.

Ultimately the man applied to set aside the bankruptcy notice but the court dismissed this and he was ordered to pay a further $2000.

The remaining court cases were struck out or dismissed and the man was then declared bankrupt by the High Court.

Potter also faced other charges in relation to his failure to withdraw from representing a client in a family court case, failing to hand over the documents to the new lawyer, and for his handling of an employment dispute.

At a hearing held earlier this month, the tribunal found Potter guilty of unsatisfactory conduct and misconduct. He was suspended from practising for 12 months.

"Mr Potter lacked support or guidance from a mentor, and he failed to recognise and observe professional boundaries," the decision stated.

"What started as helping a friend out became something of a train wreck."

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The findings said that even some of the submissions made to the tribunal by Potter, who is currently studying for a Master's degree in law, were disorganised.

"If he cannot marshall material in this forum, where his own interests are at stake, we wonder how he can manage it for clients," it said.

It noted this was his third appearance before the tribunal with the first two arising from "foolish defaults" for which he still owes the Law Society more than $20,000.

"A third appearance before the tribunal when a practitioner still presents as disorganised and with no evidence to support his representations is concerning."

The tribunal said it wanted to manage Potter's return to law in a manner that was safe for the public but warned if he were to return on similar charges then he could be struck off from practising altogether.

He was also ordered to pay more than $30,000 in costs, $5000 of which was a refund to his client.

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