Bringing the profession into disrepute. Withdrawal of caveat placed by third parties

The following matter was a transitional complaint received before 1 August 2008. It was considered by an s357 Lawyers Standards Committee set up to carry out the duties and exercise the powers that a district disciplinary tribunal exercised under the Law Practitioners Act 1982. This summary was published in LawTalk 743.

A lawyer pleaded guilty to negligence or incompetence in his professional capacity of such a degree as to tend to bring the profession into disrepute. He had, when acting for clients in the sale of their farm through the Landonline system, withdrawn a caveat placed over the farm by third parties. The lawyer had no authority to act for the third parties, did not have their consent to withdraw the caveat and did not hold a Landonline Authority and Instruction from the third parties authorising him to withdraw the caveat. The Standards Committee found, that in withdrawing the caveat, the lawyer made certifications in Landonline that were false.

The Standards Committee commented that unauthorised actions of this kind imperil the e-dealing system. It emphasised the responsibility certified practitioners have to ensure that all relevant matters are in order before instruments are submitted and the Land Register altered. This is fundamental to the integrity of the system.

The lawyer was censured and ordered to pay $1,300 by way of penalty. He was also ordered to pay the New Zealand Law Society $12,000 in respect of the costs and expenses of the Standards Committee and the inquiry.

© New Zealand Law Society 2008