Two members of the same firm have been fined more than £30,000 in total after admitting to failings in dealing with clients on a property matter.
Zachariah Reynolds and Alexa Kordowicz were sanctioned by the Solicitors Regulation Authority after each admitted failing to obtain clear instructions from a couple and failing to provide a client care letter. Both had worked together at London firm Child & Child Ltd, which then became Allium Law, which has since closed and been acquired by Child & Child Law Ltd.
Reynolds had been a partner with Child & Child in 2018 when the firm was instructed in relation to a loan agreement secured against a property registered to the clients. Kordowicz was the recorded fee-earner but Reynolds was the matter partner and heavily involved.
The SRA said the client file showed a ‘clear lack on instructions’ and a failure to consider the risk of a conflict of interest existing on the matter. The transaction turned out not to have been in the clients’ best interests, despite the firm advising that the value of the property could have improved as a result of the matter.
Both solicitors admitted failing to act in the best interests of their clients by failing to adequately address or discuss with them the risks posed by the transaction.
Reynolds, who had no regulatory history, expressed regret and remorse, and explained that working practices have improved at his current firm. In the future, he resolved to ensure clear instructions and obtain written authority regarding who can provide instructions.
The SRA said Reynolds, a solicitor for 25 years, had direct control and responsibility for his conduct and was an experienced practitioner. His conduct had potential to cause significant harm and he demonstrated a ‘reckless disregard’ of the risks involved and his own regulatory obligations. He was fined £21,287 and agreed to pay £600 costs.
Kordowicz, who was five-years’ qualified at the time, also expressed regret and remorse, and had co-operated throughout the investigation. She put forward in mitigation she was working with a senior colleague and following their approach to possible conflicts of interest. She too had improved her working practices and would in future ensure there were clear instructions and written authority on who can provide instructions.
The SRA said Kordowicz had direct control and responsibility for her actions, but acknowledged she was working alongside a more senior and experienced colleague. She was fined £9,359 and agreed to pay £600 costs.
