LAWYERS IN TROUBLE

Gisborne Times, Volume LXXII, Issue 11628, 30 September 1931, Page 4

LAWYERS IN TROUBLE

MIXED TRUST AND PERSONAL FUNDS

PRACTITIONER PLEADS IGNORANCE.

(Press Association!

WELLINGTON, Sept. 29. The Court of Appeal (Sir M. Myers, Mr. Justice Reed, Mr. Justice Ostler and Air. Justice Smith) heard nn application by (he. Novv Zealand Law Society for an order .striking William Fallon, of Auckland, 'barrister and solpeitor. off the rolls of barristers and solicitors- of the Dominion. Mr. Meek,, who with Mr. Free, appeared ior the .Law Society, sakl the grounds of the application wer*» that Fallon had mixed his trust and personal funds in one account and drawn on that account for private purposes amounts in excess of what he was entitled to draw. The- alleged irregularities complained of took place between 1923 and 1931, whilst Fallon was in partnership with one Mason. Mason, however, had been entirely ignorant of what was taking place and bad, foo his part, been scrupulously careful as do the amounts which he drew from the trust account.

Air. L. _P. Leary, who appeared for the practitioner, said the system of banking and book-keeping which led to thg confusion had been instituted twenty years ago by a public accountant, not- by Fallon, who knew nothing of book-keeping. The difficulty had arisen out of the fact that! Fallon relied on his accountant, who had always told him that the trust account was square and who, out of a mistaken sense of loyalty.' had falsified the books, and forged an auditors certificate. At nq time was. th« solicitor aware that he was overdrawing the amount due to him in tho trust account. The amount of the deficiency m the trust account, had been made good by the two partners. He asked that the practitioner be not struck on, hut that some more lenient punishment be given, him. The Court, reserved decision.

ECHO OF THE -QUAKE

solicitor held to 11AA F BEEN - NEGLIGENT.

STERNLY RETRIAf \NDFD

(Press Association s 4\ ET.-LIXETON, Sopr. £9. Tlie adjourned hearing of the charRes. brought hi" tho Now Zealand Law Society against WaKer Hislop, barrister and solicitor, of Napier, came before the Court of Appeal.’ The case bad neon adjourned since Jul v last: to ontdlo the practitioner to’ place, further facts before the Court tw r ’ TTi°’ ro '" taf P,B the facts, said that, at Hie end or last year, Hfelon received a cheque in repayment of a mortgage m favor of a ladv client.nf“n d x . ho bbequ© o n Decefnlior in’ 1V 1 lia r me only a small balance Mini rUS * aecount - Although furP by him on behalf of clients, no further banking wbfcl dOTle r U i aft6r tho earthquake,’ vhu.b, ou February 3, destroyed. hi« office and with it tho strongroom and contents. The .solicitor’s credit at the, bank was then found to be substantially reduced, although the amour® ot the mortgage moneys had nor been ~ ov f r to the ladv client The solicitor s explanation w,-;. s that tho moneys had been paid out or tho trust account against monevs wlncfe ho had received on behalf of clients, hui which he had been too l.usv it» bank. At the hme of the earthqnake, he alleged that he bad Pot'O odd m Ins strongroom and that it had been lost m tlie fire. Mr. Frc« mont TT’ i Smco Last adjournmGut. .Hi slop apDeared to liaro %. statement that money* had been received m respect of which payments had been made, * n that the positiou was different from when rhe case wa s last before the Court" S M M. .Myers, pi delivering judgment, said that it was particularly tertunate for Hislop that the Court ifent P f VIOUS iT an adjournft v $ lum to bring further particulars before . it. The practitioner had been guilty G f very orave negligence. The money lost’ in the. earthqiiake belonged to clients an<3 Ins duty was to have banked it promptly. Fie had not only bee® grplty of carelessness, but had committed a broach 0 f the Law practitioners Act. As ho had been virtually .suspepvled from practice «ino» February lie would be. sternlw reprimanded bv tbo Court, and erdor# cdtop.iv the Law (society’s costs Mr. Hay appeared for Hislop.