SOLICITORS AND CLIENTS

Taranaki Daily News, 22 December 1930, Page 9

SOLICITORS AND CLIENTS

MISAPPROPRIATION OF FUNDS.

NEW MEANS OF PROTECTION.

Action taken by the Law Society and the legal profession as a whole to protect the public agatiist. any loss that might result from any individual practitioner going astray was outlined in the Supreme Court at Wellington by Mr. W.. X. ; Treadwell; Wanganui, who appeared for a solicitor who had pleaded guilty 'to charges of misappropriating clients’ money. . '■ Mr. Treadwell said there were hundreds practising the profession of the law in New Zealand. These men might be termed honourable in every sense of the word, and when the great number of solicitors practising was considered, the number that went astray was not very large. Unfortunately, when a solicitor did go astray the utmost publicity was given, to that fact, and the pro-; fession as a whole incurred odium and suffered. ■•/'’/ ’’//'/V,

The profession had, quite voluntarily, being doing everything possible to prevent these unfortunate embezzlements. Last year the profession had had. an Act passed with the sole object of protecting the public against any solicitor who might become dishonest, and a fund had been established with a limit of £lOO,OOO for’the purpose of paying out any claims of clients that might arise owing to any solicitor’s dishonesty. ' It was desirable that the' public should know, and the greatest publicity should be given to the fact that since the first day of January,' I'9Bo, the public was 'absolutely protected’ against ■’ defalcations, and any loss that arose consequent upon defalcations fell’ upon the profession itself. In addition to this, provision had been made that 'f . the actual contribution which each solicitor was required to make should prove insufficient, the Law Society > could' make a levy on solicitors to meet such deficiency. All that a client who had been defrauded now needed to do was to make his claim on the Law Society. The procedure for doing this was of the simplest nature, and it was not even necessary, to employ a. solicitor to make the claim. Prompt attention was at once given to the claim, and prompt payments made in all cases where moneys were payable. New Zealand<had led the way in many things,.and the New Zealand- practitioners had led the world in making this reform, and had done so quite voluntarily. In Australia and elsewhere the example set by the New Zealand practitioners was being followed, and no one now need feel any apprehension of losing money entrusted to a practitioner for investment or otherwise. ‘

. Mr. Treadwell said that, while the solicitors were doing their utmost to protect clients, the clients themselves might afford great assistance, and solicitors were entitled to expect such as- ; sistance. If any client had any doubts about the integrity of his solicitor oi’ about the conduct' of his business, all he had to do was to advise the District Law Society at.once, and steps would be taken without expense to the client, to see that the whole matter was at once looked into, an auditor being appointed to inspect the books and every possible step taken to protect the client. Counsel added that he made these remarks with His Honour’s permission, and in justice'and fairness to an honourable body of men who were doing their best to protect the public and themselves against any dishonesty on the part of any individual practitioner.