Prominent Nelson lawyer Nigel McFadden faces new investigations into accusations of deceit and conflict of interest after the High Court rejected his bid to block reopening of the case.
In a recently released decision, Justice France granted the reopening of a district law society investigation into complaints against Mr McFadden first
made 3-1/2 years ago by Nelson millionaire Michael Talley and his wife, Lorraine.
Mr McFadden, who is also chairman of the Nelson/Marlborough District Health Board, admitted a conflict of interest during an earlier investigation, but denied deceiving the Talleys.
The initial investigation was carried out by Wellington District Law Society who decided not to lay disciplinary charges against Mr McFadden.
The re-investigation, likely to be conducted by the Canterbury District Law Society, may consider more recent complaints against Mr McFadden and whether a full public disciplinary hearing was warranted, the National Business Review reported today.
Possible punishment for a guilty finding against Mr McFadden include censure, a fine, restrictions on his practice or being struck off.
Justice France said in her decision that the absence of Mr McFadden's recent complaint history when the Talley case was being considered was "an important omission".
She said the investigation committee should have had Mr McFadden's recent complaints history.
"In some cases the public interest will outweigh those of a practitioner," she said.
The Talleys originally claimed Mr McFadden had not disclosed a conflict of interest in relation to a land rezoning and subdivision project.
Mr McFadden was asked by the Talleys to object rezoning of land opposite their property at Kina, near Motueka, but he did not tell them of his trustee position on the Kina Trust, which owned some of the land.
- NZPA
