A south England firm has kept itself out of the Solicitors Disciplinary Tribunal after admitting to acting for different parties with a conflict of interest in an estate matter.
The Solicitors Regulation Authority said that The Owen Kenny Partnership Limited, based in Chichester, had agreed to be fined £2,000 and to pay the same amount in costs. The SRA’s previous decision to refer the firm to the tribunal was overturned upon signature of the agreement.
The firm had been instructed by an individual referred to as Mr A in his capacity as personal representative of an estate belonging to Ms B, the beneficiaries of which were her four siblings.
The firm’s obligation was to act in the best interests of those beneficiaries, but the landscape changed when Ms B made a deathbed gift to Mr A valued at £550,000 – the vast majority of the estate. His claim had a serious and material impact on the other beneficiaries who stood to lose out, and the SRA said the firm should have been identified that a personal conflict of interest had arisen.
The firm’s solicitor sought counsel’s advice but considered this a ‘technical matter’ without spotting any conflict. Counsel subsequently stated that their advice was given to Mr A in his personal capacity as a ‘potential donee’ of the estate and did not explicitly refer to him as a personal representative. The advice was that the deathbed gift was valid.
Despite a different solicitor taking over conduct of the file and the possible risk of litigation from beneficiaries, the firm did not identify at any stage that there was a conflict of interest in acting for Mr A in his personal capacity and its instructions to act to administer the whole estate.
The firm admitted that by failing to assess the file independently and continuing to act for Mr A as a personal representative to the beneficiaries – even when he claimed his personal right over part of the estate – a conflict had arisen. This breached two SRA principles.
The SRA said it considered the mediation steps taken by the firm and the lack of any wilful decision to continue to act in the matter. A fine was deemed appropriate for the conduct admitted in order to maintain professional standards and public confidence.