SOLICITORS' PRACTICE

Evening Post, Volume CXI, Issue 66, 19 March 1931, Page 15

SOLICITORS' PRACTICE

; IRREGULARITIES ALLEGED ,:j ACXIOTi,B\I .:LAW ; > SOCIETY;;

, itction.'was taken'in the CoiirtofiApipeaf yesterday afternoon, by the New, Zealand. 'Law Society' agains't;'/two; Auckland barristers and solicitors, Roil-: aid Gray Maspn'arid Charles Ellis.;Wad-; dingham,' against : whom "were ./alleged ■contain' irregularities/iii .■'; their, jprofes-'. sional praeticel. ■: _■/..:* ;■•■■. ','■;■•■,: '-tr ■■/ ■ '-■ ■ The LCou^rt reserved' decision "on.;'th,e.| question/of "penalty;/and.'thisi' morning, the/ ,:: .Chief ~S Justice: ■■'.(Sir: /^Michael Myers); saicLthat the..Court' wds'vunfini.ihbusly- of-' thelv.opiiuoii" : that/thpfe'-'was only ■-.ono;courseVto:adopt, a'ndvthat1/was to: make;,an..,ofder'. striking ■ t|ie practitioners iff -both rolls^thG^.rpirofj.barris"-' tors aid the:..roll.of;solicitors;'/./;:; / ;. • The' practitioners./;, were ordered; to .pay,;£ls;lsß'cWs'^of.!;tnß/^ow./Ze'%la4d Law Society and 'disbursementsj'; including tho special, audit fee, incurred: .by/the;> Auckland '. District ' Law- • So'-. ciety. ..;•;.'■■; './-,.■ ■''/■ ,y///;- ■■.■'' yl'r'^'---i\ /The .pbsitibny sajd ; yon, Haast,whb, with Mr. A. Tree, appeared for the New Zealand Law\Societyj\:was that the practitioners had not kept a separate 'trustjjaccount of their.'clients' moneys (amounting in effect to' misap-' propriation;.of- their.:.clients'-.moneys;,;, that they, had .in,ide {fictitious: entries."tb. misle.ad ..the /auditors;" thnti there . Ka# : been shQrtages.in the trust account''and cheques dishonoured; .on nujnerous' occasions;.and that: tlioy had faitedtb,have the/trust account .audited.'' There t^as ho:./dispute whatever'!'atiput the facis set. 'out' iii.t he., affidavit;•'} th,ey ; wcre \ admitted by.;.the .practitioners.'.. '•' In •. ;.ref qronce to ■ the;: ptescnt position of the practitioners ihyestigation showed that there were ixoyf^ no. ■ ■..;■ -Ho, wished also;to nientipu .tliat' the -auditor upppint'ed.by;.theAu C kland.Law:Sbcibty to:'make an.exaininatibn. had becn'..given every asistance: by both, partners. :;-The Auckland Law /Society ; had 'Jbben "put to .thq expense of £45 3s 'for a'; special audit fee, and counsel asked i that' the Court: in dealing with the1, practitioners" should order that amount tor be .paid. .. ;■' ■. ■•. ■. /' .'

.Mr. Singer, of Auckland, who .appeared for the practitioners, said that they had not deliberately, failed tb: have their. trust account audited. ■•■Mason arid Waddingham had been in practice, since the,-end of the Avar, and it appeared that it .-was- 'only 'latterly through muddle and incompetence•'■in bookkqeping, the services of their bookkeeper having; been ■ dispensed '- with, that they had fallen-into the .deficiencies in their practice. It- appeared that never at any time had .there been any .great shortage, and that the partners had the resources with! which they could have made good any deficiency. He., asked, the Court to deal leniently with the practitioners and not to strike thenvoff the .rolls. . : ■ . :■■ ■.'■'-