A law firm director has been struck off after he misled clients in three personal injury cases by suggesting their failed claims had been successful.
David William McDermott, director of Merseyside-based Michael W Halsall Solicitors Ltd, admitted making statements on three client matters, between 2015 and 2020, which ‘were apt to lead’ clients to believe their personal injury claims had succeeded when he knew or ought to have known they had failed. He admitted his conduct was dishonest.
The Solicitors Disciplinary Tribunal judgment said McDermott accepted he would be struck off.
McDermott, admitted in December 1994, denied that he, on three client matters without proper valuation, paid money to clients after their claims had failed. This allegation was dismissed after the tribunal found the Solicitors Regulation Authority had not properly pleaded the allegation.
McDermott, who no longer has a practising certificate, was appointed director of Michael W Halsall in 2013. He was suspended from the firm and then resigned in 2021. The firm closed, according to SRA records, in August 2024.
One of the PI claims failed due to ‘defective service of court documents in 2015’. Despite the failure of the claim, McDermott continued to communicate with the client as if the claim was ongoing and successful.
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Protective proceedings, on behalf of another client, were issued but no further action was taken ‘therefore the client’s case would have failed against the defendant for want of prosecution’.
‘[McDermott] continued to communicate with [the client] as if the claim was proceeding, including discussing a valuation of the claim in July 2018, suggesting a settlement range of £3,750 to £3,800’, the judgment said.
Part 7 proceedings, on behalf of a third client, were issued but later struck out due to a failure to book representation for the case management conference following a court order’. McDermott ‘continued to communicate with [the client] as if the claim was ongoing, including discussing quantum', the judgment said. This included suggesting a settlement figure of £17,000 and later confirming an agreement for a 'balancing compensatory payment of £12,500.00'.
The tribunal was ‘satisfied’ McDermott’s admissions were ‘properly made’ adding: ‘Ordinary decent people would regard it as dishonest for a solicitor to knowingly make untruthful statements to their clients in order to conceal negligence.’
In mitigation, Geoffrey Willaims, for McDermott said McDermott ‘was, and remains a man of principle’. He added: ‘He had self-reported and he accepted his misconduct. This had been a sad fall from grace for a talented and experienced solicitor who had represented many people in the appropriate way and within the rules over many years.’
No client suffered financial loss.
The SDT judgment said: ‘The misconduct was too serious for no order, a reprimand, conditions of practice, a fine or suspension. The only sanction which could be imposed was for the respondent to be struck off the Roll, nothing less would restore the public’s confidence in the profession.’
McDermott was also ordered to pay £5,715 costs.
