Strike-off for solicitor who used client money to keep firm afloat


SDT: Flagrant disregard of duties

A sole practitioner who used client money to pay his law firm’s business costs, including the salaries of several family members who worked for him, has been struck off by the Solicitors Disciplinary Tribunal (SDT).

The tribunal also found that Martin Darren Rounthwaite lied to another law firm about an interim payment of £72,000, failing to disclose that he had received the money and “falsely asserted that funds could not be released to settle costs as fictitious negotiations were ongoing”.

The solicitor “misused client monies for personal and other professional purposes” and “flagrantly disregarded” his duty to protect it.

Mr Rounthwaite, admitted in 1999, practised from April 2003 until February 2020 as a sole practitioner through Pro-Law Network, and was the firm’s COLP. Jill Rounthwaite, who was not a solicitor, was the COFA.

Mr Rounthwaite took over a personal injury claim from Spencer Solicitors Ltd (SSL) in March 2013, having signed an undertaking to preserve a lien in respect of SSL’s costs and disbursements.

The solicitor told SSL, when the case concluded in December 2015, that he had instructed a costs draftsman. SSL accepted an offer in settlement of its costs of £16,700.

Mr Rounthwaite told SSL in May 2017 that costs were being negotiated and he had applied for a detail assessment, a position he maintained until December 2018, after which SSL no longer received any further communication from him.

Having received no money, SSL found out in May 2019 through the defendant insurer that “as far as they were aware, the matter was settled in May 2017 and they had no knowledge of the matter going to a detailed assessment”.

In fact, Mr Rounthwaite had received a £72,000 payment on account of costs in March 2016 and settled the claim for a further £5,000 in May 2017.

The SDT said Mr Rounthwaite “essentially received £72,000 in client monies and not only failed to disclose that fact” but “falsely asserted that funds could not be released to settle costs as fictitious negotiations were ongoing which was likely to result in detailed assessment – none of which was true”.

The solicitor admitted to the Solicitors Regulation Authority (SRA) in 2022 that the information he provided to SSL was “inaccurate”; he accepted he should have checked the position before writing to SSL, admitted that he failed to pay SSL and accepted that he failed to discharge his undertaking.

Mr Rounthwaite, who did not engage with the tribunal proceedings “in any meaningful manner”, was found to have acted dishonestly.

He was also found, on various dates between August 2016 and September 2019, having received money from clients for costs and disbursements, failed to pay suppliers or pay the money into client account.

One medical expert agency obtained two county court judgments against Pro-Law Network worth nearly £25,000, while two barristers’ chambers, Chancery Lane Chambers and Liverpool City Law, were also left out of pocket, along with various other expert witness, costs and marketing providers.

The SDT said “the paper trail demonstrates the movement of client monies”, which went into the office account to pay bills, overheads and multiple salaries “to members of his family in his employ”, rather than being used to pay disbursements, with any surplus going to client account.

In summer 2019, the solicitor intended to enter into an individual voluntary arrangement, owing £225,075 to 15 creditors. But the arrangement was rejected and the following month the SRA was told that Mr Rounthwaite intended to close his law firm.

The solicitor was declared bankrupt in September 2019. The SRA closed the firm in February 2020.

The solicitor was further found to have failed to notify the SRA that his firm was in serious financial difficulties and to close it in an orderly way, despite being asked by the SRA to do so in writing seven times.

Mr Rounthwaite submitted no mitigation. He was struck off and ordered to pay costs of £39,460.




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