An experienced partner who drew on client funds to try to save his firm from financial ruin has been struck off the roll.
Mark Grenville Davies, admitted in 1985, made improper withdrawals from five client matter ledgers to the office account as his firm, Bennett Richmond Solicitors, neared its £85,000 overdraft limit.
Davies referred himself to the Solicitors Regulation Authority in 2023. The regulator subsequently intervened to close down the firm and investigated its accounts. The Solicitors Disciplinary Tribunal heard that Davies admitted to the investigator that he had been improperly billing on client matters to stave off financial pressures.
Transfers were made on five probate matters for a total of £13,740, which Davies had not replaced. It was further discovered that he had previously failed to notify executors of the firm’s costs on four other probate matters and had overcharged two estates by more than £9,000 each. The solicitor had admitted that, in general, when he prepared invoices, there was a large amount of ‘guesswork’ in calculating the amount, but that he had known that some invoices could not be justified by the work that had been done.
The tribunal heard that Davies had been a partner at the County Durham firm for 20 years but had been left to run the business alone when his co-partner died in 2019. He was the firm’s sole manager and compliance officer.
Davies told the tribunal he had never had any disciplinary or regulatory issue in more than 40 years as a solicitor. He had suffered a stroke in early 2022 and his health had suffered since then.
From a peak of five partners, the partnership had dwindled to one and Davies had unsuccessfully tried to dispose of the firm. He said he was not suited to being either a sole practitioner or a compliance officer but was left holding both roles.
In terms of motivation, Davies, said he was trying to preserve a firm that had been a presence in the town of Consett for more than 100 years and which had a long-serving and loyal staff. He felt obligations to these employees and to long-standing clients and was trying to keep the firm going in the face of financial reality. He had no personal financial gain from any of his actions and now felt deep shame and remorse that would be with him for life.
Davies made an agreed outcome with the SRA to be struck off. It was further agreed that due to his financial situation he should make no contribution to costs. This outcome was rubber-stamped by the tribunal, which accepted that Davies had been motivated to avoid breaching the firm’s overdraft facility.
