Lawyer struck off roll for misconduct

Press, 2 July 1986, Page 12

Lawyer struck off roll for misconduct

PA Wellington A prominent Rotorua lawyer, Mr Tirol Wi Rutene, has been struck off the roll of barristers and solicitors after admitting 64 charges of financial and professional misconduct Mr Warwick Gendall, representing Mr Wl Rutene, told the Law Society disciplinary tribunal that his client admitted all the charges. Mr ,C. J. Harding, for the Hamilton District Law Society, said that 10 of the charges involved . improper borrowing from clients. Mr Wl Rutene still owed his clients $21,129 in principal and interest at March 31 this year. Fifteen charges concerned arranging loans from one client to another without authority. These charges , involved more than $285,000 in clients’ funds. Another 16 charges related to loans arranged by Mr Wi Rutene from one client to another, in breach of the clients’ expressed authority. These involved a total of $209,000 In clients’ funds. Five charges involved misleading statements — three to the Law Society’s audit inspector and two to clients. Failing to keep proper trust account records was the basis for six more charges, and another 12 charges alleged negligence, incompetence or

misconduct over various amounts of money. Mr Harding said the total. amount unpaid at March 31 this year was $71,484 in principal and Interest. Mr Harding said the council of the Hamilton District Law Society had decided by a majority that it would be appropriate to have Mr Wl Rutene struck off. For Mr Wi Rutene, Mr Gendall said his client was a humble, sad, contrite man after 22 years in practice. He had too much concern for others and not enough for himself. Mr Gendall said there had been no misappropriation by Mr Wi Rutene himself, no client had complained, and his own borrowing had arisen from his special relationships with clients who were close friends. All the problems had arisen since 1979 and had grown as personal pressures on him grew and he allowed his cultural background and values to override his professional judgment. Since August last year, when Mr Wi Rutene had appeared before the Hamilton District Society, he had tried to clean up his practice, and when that failed had disposed of it to another firm and got a consultant to bring the mess down to $71,000. Mr Gendall said he had

been advised Mr Wi Rutene would personally pay back that money within six weeks. Chief District Court Judge Trapski and 11 Rotorua lawyers who had day-to-day contact over many years with Mr Wi Rutene had given references saying they believed he was fit a person to continue in practice as a lawyer. Since 1979, when Mr Wi Rutene had been earning $40,000 a year, his income had dropped to $lO,OOO a year, and to nothing in 1984. His office procedures had begun to fall apart and he had been forever “putting out the bushfires” after he took two newly qualified halfbrothers into his practice. Mr Gendall said striking off Mr Wi Rutene would go far beyond what he deserved. The tribunal chairman Mr Ted Thomas, Q.C., said the case was a a sad one and the tribunal reached its decision with some sorrow. However, the public interest element must prevail. Mr Wi Rutene had breached his duty of trust to his clients and the charges were serious and numerous. His conduct had fallen to a level that necessitated the most severe penalty. Mr Wi Rutene was also ordered to pay costs totalling $ll,OOO.