Neil Sands
A Waikato law firm director who employed a solicitor despite knowing the new hire was suspended from practising has been censured and fined $10,000, with a disciplinary tribunal describing his actions as “foolish” and “reckless”.
Peter Jefferies, director of Hamilton-based Jefferies Law, was also ordered to pay an additional $15,173 to cover costs associated with the case, which involved him employing solicitor Benjamin Wong.
At the time, Wong was subject to an interim suspension order for deceiving a client and forging court documents (he was eventually struck off for misconduct).
The Lawyers & Conveyancers Disciplinary Tribunal said in written decision that Jeffries knew Wong’s family and had previously employed him at his firm. He also felt Wong had been “upfront” about his misconduct.
“[Jefferies] took the generous but foolish step of employing him without consent,” it said “Mr Jefferies thought that he was managing the situation within lawful bounds, but he failed to check and failed to seek consent. He now realises his error and admits the charge of misconduct by unauthorised employment of a suspended lawyer.”
The tribunal said that while Jefferies believed he had taken steps to ensure Wong had no direct contact with clients, he had clearly placed the suspended lawyer in a position where he was providing regulated service, “recklessly” failing to check what protocols might apply in the circumstances.
Record suggests ‘laxity’
The tribunal said suspending a lawyer was done to protect the public and Jefferies had a duty to comply with s 7 (2)(a) of the Lawyers & Conveyancers Act 2006, which bans law firms from hiring solicitors or barristers who are suspended.
“We do not condone disobedience, even where the practitioner thinks they have been careful. Deterrence is an important guiding principle in our response,” it said.
The tribunal added: “We are sceptical about the assertion that Mr Wong attended to all his tasks from home over a period of seven weeks and that the tasks described were the extent of his activities. Without listing the tasks exhaustively, they included opening new files; helping to set up a new trust accounting system; updating on various property matters; and briefing on complicated estate files.
In determining Jefferies’ penalty, the tribunal also considered his disciplinary record, which includes three cases of trust account “shortcomings”, one of which attracted censure and a $10,000 fine.
“The resultant profile suggests laxity on Mr Jefferies’ part,” it said, handing down another $10,000 fine and censure.
“Mr Jefferies, you admit the charge of employing a lawyer who was suspended, without consent,” the censure reads. “This action, however unwitting, is a flagrant breach of your professional obligations under the Lawyers & Conveyancers Act.
“Suspension of a practitioner is a grave matter, undertaken to protect the public and to maintain confidence in the provision of legal services. You have failed to uphold the rule of law. Your breach is disappointing and unacceptable. This censure remains a constant record of this failure on your part.”
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