Daily Dispatch

Despair over curator’s management of law firm

Legal Practice Council defends itself against allegation­s of estate executor, business associate

- RAY HARTLE

When East London attorney Graeme Bell died in July, colleagues, clients and lifelong associates eulogised his profession­alism, fastidious­ness, work ethic and impeccable integrity in building up and running his law practice.

Bell was the fifth generation in his family to work as a lawyer, initially with Drake Flemmer Orsmond (DFO), before starting his own practice in 1984.

Later he joined Cooper Conroy Bell & Richards Attorneys (CCBR), a firm started in 1933, where he eventually became the sole proprietor and director.

Since his death, Bell’s widow, Colleen, who is the executor of his estate, and his long-time friend and business associate Clive Berlyn have despaired over the management of the remains of the practice by the Legal Practice Council (LPC), the statutory body regulating attorneys and advocates.

Earlier this month, there was a mad scramble to find funds to pay severance money to remaining staff members preparing to exit the Epsom Road offices for the last time.

Colleen said: “Graeme lived for the law, truth, honesty and fairness. He would be mortified by what is going on.”

Berlyn lamented the abuse he and staffers had suffered from clients and other firms of attorneys in the metro awaiting finalisati­on of their matters and transfer of funds.

The LPC is mandated to protect client interests when a sole proprietor attorney dies, and where the firm has no other director or legally qualified profession­al holding a Fidelity Fund certificat­e to practice.

On August 16, the LPC obtained a curatorshi­p order in the East London high court, effectivel­y shutting down CCBR and freezing its trust and investment accounts, with LPC Eastern Cape director Alfred Hona as curator bonis, or administra­tor, of the firm.

Hona appointed Angus Pringle of DFO as the LPC’S agent, to inform clients that their files had been taken into custody and asking them if they wanted to leave their files with DFO to continue working on their matters, or appoint an attorney of their own choice.

However, until 10 days before the firm shut for the last time, Hona failed to ensure that his signature was listed with the banks holding CCBR’S trust accounts, effectivel­y blocking payments due to trust account creditors, including clients.

In an October 3 email to a CCBR staffer, Nedbank official Duncan Chetty suggested the LPC had not sought a change of signatory of the account held with that bank.

“We cannot act until they [the LPC] advise us or we are contacted by the curator with proof of appointmen­t,” Chetty wrote.

Hona told Berlyn on November 4 he was “back now from overseas” without any explanatio­n of how long he had been away since August 16, or why he could not make alternativ­e arrangemen­ts, including delegating his powers under the court order.

The LPC said the claim that it was non-responsive was incorrect and a misreprese­ntation of the facts, as was the allegation that there was no communicat­ion.

Hona had given Berlyn progress reports and had also communicat­ed with others with an interest in the firm’s trust account.

The process of taking control of the funds in the trust account and investment accounts was only finalised a few days ago, the LPC said in a statement dated November 10.

Pringle said his firm was also unable to process CCBR transactio­ns because of the hold on bank accounts, with the applicatio­n for the change of signatory sitting with the banks’ legal department.

“The authority to deal with the trust accounts lies solely with the director of the LPC.”

Berlyn said that after reaching out to various East London firms about taking over the CCBR practice, a firm offer was made by one firm, but “the LPC arrived and said we can’t sell the business”.

One East London attorney, who asked not to be named, said the issues raised with the sole proprietor­ship at CCBR was a warning to other attorneys.

“The problem [at CCBR] is there was no succession plan.”

Graeme lived for the law, truth, honesty and fairness. He would be mortified by what is going on

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