A solicitor who wrongly advised 115 clients about the timing of their rent reviews has been fined £15,000 by a tribunal.

David Carter Hughes, of Manchester firm Bannister Preston, admitted giving incorrect advice over six years and reached an agreed outcome with the Solicitors Regulation Authority, which the Solicitors Disciplinary Tribunal rubber-stamped.

Hughes, who is now a partner, advised the clients that ground rent on leasehold properties they were buying would double every 25 years when in fact it would double every 10 years.

The firm received a complaint in 2019 from a client who said he had been wrongly advised on the terms of the lease and the cost implications. An internal investigation found that from 2008 to 2015 the firm used a precedent report on title in relation to Taylor Wimpey conveyancing matters.

Historically, the developer had operated a 25-year rent review but on this particular development it changed this to 10 years. As soon as the error was spotted the precedent report was updated.

The tribunal heard that the full extent of direct harm caused by Hughes was not known, but that 115 clients had been detrimentally impacted which in some cases had led to litigation. Claims were also made to insurers and to the solicitors compensation fund.

The tribunal found that Hughes knew or ought to have known that inattention to detail could result in a breach of his professional obligations and duties. However he had been open and frank with his firm, the SRA and the tribunal from the moment of the client’s complaint and showed genuine insight and acceptance of accountability.

Hughes admitted that clients should have received the correct advice but that he did not act deliberately to compromise their best interests. He explained that he had been in the process of improving client service through a more detailed report on title documents, but there had been a failure of systems and controls which led to the mistakes.

The tribunal considered Carter Hughes' misconduct ‘very serious’ and said it merited a £15,000 fine. Carter Hughes must also pay £13,350 in costs.

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