Professional Conduct and Ethics of Solicitors: A Case Study Analysis

This essay presents a case study involving a solicitor, Mr. Gordon, and his clients, Katy and Matt, who sought to purchase a restaurant. The essay analyzes Mr. Gordon's actions in relation to his professional conduct and ethical obligations. It outlines the problems Katy and Matt faced, including staff departures, financial inconsistencies, and undisclosed information about restrictive covenants and a local redevelopment plan. The essay examines the legal advice Mr. Gordon provided, highlighting breaches of the solicitor's code of conduct, such as failing to disclose his relationship with the previous owner and the unfavorable loan terms. The essay discusses the relevant code of conduct principles and the potential for a negligence claim against Mr. Gordon. The conclusion emphasizes Katy and Matt's legal right to take action against Mr. Gordon, citing his failure to fulfill his duties, responsibilities, professional ethics, and code of conduct.

ESSAY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
Overview of case.........................................................................................................................2
Related problems and issues........................................................................................................3
Legal advice in regard to case.....................................................................................................4
CONCLUSION................................................................................................................................5
REFERNCES...................................................................................................................................6
1

INTRODUCTION
Acting and working in professional way and adopting methods which are correct and
applicable at time when they are dealing with their clients, customers, supervisors and
management. Solicitors are those who are member of professional and legal association who are
dealing with matters related to drawing of wills, conveyancing and others. In this essay legal
provisions and rules regarding solicitor is studied including what are professional ethics and code
of conduct.
MAIN BODY
Overview of case
In the given case which includes Katy and Matt who decided to open a restaurant into
their local area in this regard they opted to purchase one of the leading and reputed restaurant of
their area. Katy who was working as nurse in nearby nursery was having about £300000 which
she received from one of her aunt1. While on other hand Matt was working as Chef in various
other restaurant and both of them wished to run their own business. According to long running
history and good reputation among customers of restaurant it was valued at £350000 for the
further legal advice they both recruited local Solicitor Mr Gordon who was senior partner in
Martindale’s.
Katy and Matt discussed all their aims and their financial condition to Mr Gordon who
was also having good knowledge in commercial transactions and he was recommended to them
by their friend. As the business was valued at £350000 so they need to take commercial loan of
about £50000 one of the financial company which was also recommended by Mr Gordon only.
But the solicitor did not included on terms and conditions of loan agreement and both of them
signed the agreement without going through it. Katy and Matt were asked about their financial
statements of 3 years and P&L account of the current year which they did not able to understand
and consulted Mr Gordon. He also did not made them both understand about financial condition
of restaurant and its profits or loss after this they signed the agreement and purchased the
restaurant within 1 month.
1 MacKinnon, F.B., 2017. Contingent Fees for Legal Services: Professional Economics and Responsibilities.
Routledge.
2

Related problems and issues
After they began their restaurant started facing issues and problems regarding various
legal, management and other areas. Towards the 1 week only their staff began to leave restaurant
including 2 of their Chefs and then they started to work for the previous owner of restaurant who
opened his own just 2 miles away. One of the friend of Katy and Matt who was also professional
accountant checked their financial statements and found many serious inconsistencies that
solicitor must be taking out and showing it to them both. Moreover solicitor did not included or
informed to Katy and Matt about restrictive covenant which is imposing constraint from the use
of land over specified limited area so that the adjoining land could be preserved. So this could be
done to prevent the old owner to open his own restaurant over about 5-10 miles which was not
included or informed by Mr Gordon.
After all these discoveries Katy and Matt began to know that Mr Gordon was very close
friend to the previous owner of restaurant and he had also invested into that competing
restaurant2. This competition was very much immense that Katy and Matt’s restaurant all
customers were going to that competitive firm and they began to make loss since the time they
purchased it. then they decided to sell the business to other with view to sell both of them
consulted local firm named Chartered Surveyors and Estate Agents so that they could be value
the firm at lasted price. After all valuation of business was around £200000 it was included that
area one which restaurant was build up was of local authority redevelopment and some of the
properties like that of restaurant and there was compulsory order to purchase them all. All these
stated things and points must be advised and included by their solicitor which was not done by
Mr Gordon.
After all these things which went wrong with Katy and Matt they decided to bring out
claim for negligence against Mr Gordon they stated that if they were knowing about friendship
of solicitor and previous owner then they never would be taking his advice. There were various
points which they were not knowing like that of re development of that particular area, were
unaware of restrictive covenant. Moreover their loan agreement which was not very well stated
or explained by Mr Gordon was having interest rate of about 25% for over 5 years and difficult
early repayment clause.
2 Jensen, T., Sandström, J. and Helin, S., 2015. One code to rule them all: Management control and individual
responsibility in contexts. Business and Professional Ethics Journal. 34(2). pp.259-290.
3

Legal advice in regard to case
The code of conduct of solicitor was included from 1st July 2007 which is applying within
England and Wales for practice to provide overview of solicitors and their role to be played. This
code was then replaced by rules of professional conduct in Solicitor Practice Rules of 19993. All
those who are involved with providing legal advice should be following all duties which are
included as per their role and obligation. There are certain principles which are included to as
rules and duties of solicitor like that of
 Upholding all rules and correct management of justice
 Acting in integral way
 Acting according to best interest of each client or customer
 Complying with legal and regulatory rights and duties
 Protecting interest, money and assets of clients
There are many code of conduct which Mr Gordon needed to follow while he was did not
focused or included while doing or performing his role and duty. This code of conduct will be
including 5 sections and all of them were laying down how solicitor need to perform which must
be in set way4. The chapter 1 will be client care which provides that there must be correct
standard of service which solicitor will be giving to individual. This will be including that
solicitor should be giving correct advice to all their clients with full information so that client is
able to take decision. Their service must be as per proper standards so that client is been able to
include understanding expectations and responsibility of solicitor. Then in other chapter 2 which
is including equality and diversity which means that client must be getting all equal right to get
opportunity. It should be duty of solicitor to provide protection to client in unlawful
discrimination on bases of age, gender or any other.
This will be including that all client is getting adequate requirement like they are been
treated in equal level like they are to treat fairly and respecting value of client within workplace.
Other than this it is also duty of solicitor that they are properly which is laid down in chapter 3
this is including critical public protection as well. These kind of conflict could arise at time when
client or solicitors views are not matching or they are involved into any kind of interest issues.
As per the professional ethics which will be including recognising of all difficult situation like
3 Boon, A., 2014. The ethics and conduct of lawyers in England and Wales. Bloomsbury Publishing.
4 Hardy, M.C., 2016. Drafting an effective ethical code of conduct for professional societies: A practical guide.
Administrative Sciences. 6(4). p.16.
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that of making choice so as to sustained by the code of conduct5. These ethics will be including
that they must be committed towards their acting with all form of honesty and integrity so that
moral could be recognised.
In the above case it was important on part of Mr Gordon that he should be clearly
mentioning all vital points to Katy and Matt so that they were not kept at loss of any kind. It was
very essential duty of solicitor who was appointed by both of them to provide them with proper
and correct information regarding their agreements including like that of6:
 Telling about his and the previous owners friendship so that Katy and Matt would not be
choosing him in any way out and also about his investment into competitive firm.
 Informing about loan agreements and interest of loan which was 25% for 5 years
 Discussing the issue of local re-development plan of government so that they would not
be buying the restaurant
 Proper information about restrictive covenant to prevent owner of restaurant from
carrying on same business within at least 5-10 miles
All these points and information were important to be noted and stated by Mr Gordon so
that Katy and Matt must not be opting Mr Gordon as solicitor for their firm7. They are now
having legal right to take correct actions of negligence against him. Mr Gordon was not able to
comply with his rights, duties, responsibilities, professional ethics and code of conduct. These
things created issue relating to working and operating his duties as solicitor to Katy and Matt.
CONCLUSION
From the above essay could be concluded that Katy and Matt are having legal right to
take actions against Mr Gordon as he was not able to inform them about various essential points.
They would be claiming against Mr Gordon in compliance solicitor code of conduct and
professional ethics and his duty to work in professional way.
5 SRA Code of Conduct 2011. 2018. [Online]. Accessed through:
<https://www.sra.org.uk/solicitors/handbook/code/content.page >.
6 Davies, P.W., 2016. Current issues in business ethics. Routledge.
7 Shapiro, J.P. and Stefkovich, J.A., 2016. Ethical leadership and decision making in education: Applying theoretical
perspectives to complex dilemmas. Routledge.
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REFERNCES
Books and Journals:
Boon, A., 2014. The ethics and conduct of lawyers in England and Wales. Bloomsbury
Publishing.
Davies, P.W., 2016. Current issues in business ethics. Routledge.
Hardy, M.C., 2016. Drafting an effective ethical code of conduct for professional societies: A
practical guide. Administrative Sciences, 6(4), p.16.
Jensen, T., Sandström, J. and Helin, S., 2015. One code to rule them all: Management control
and individual responsibility in contexts. Business and Professional Ethics Journal, 34(2),
pp.259-290.
MacKinnon, F.B., 2017. Contingent Fees for Legal Services: Professional Economics and
Responsibilities. Routledge.
Shapiro, J.P. and Stefkovich, J.A., 2016. Ethical leadership and decision making in education:
Applying theoretical perspectives to complex dilemmas. Routledge.
Online:
SRA Code of Conduct 2011. 2018. [Online]. Accessed through:
<https://www.sra.org.uk/solicitors/handbook/code/content.page >.
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