Lawyer justifies $184,000 estate fee

An Auckland solicitor who charged $184,000 to administer a $350,000 estate told police he only charged for his time and attendance, as all lawyers would.

The 52-year-old, who has interim name suppression, has pleaded not guilty to criminal breach of trust in administering the estate of Leonard Hoare, who died in June 1994.

The main asset of the estate was a house in Piha. Mr Hoare's widow, Velda, was bequeathed a life interest in the house and his five sons, from a previous marriage, were to inherit whatever was left when she died.

The solicitor was executor and sole trustee of the estate.

When the property was sold in 1997 for $347,500, Mrs Hoare moved to Picton and bought a house for $212,000.

The balance of the money was supposed to be left in a bank account to gain interest, but the Crown alleges the solicitor used it to pay his fees.

The Crown also says he took out a mortgage on the Picton property to pay fees and a further $32,000 spent by him on consulting other lawyers about how to administer the trust.

In a statement handed up to Judge Roderick Joyce, QC, the solicitor told police that charges for administering the estate rose as problems between Mrs Hoare and the five sons developed.

He said Mr Hoare had told him he would have trouble with the sons, who resented his second marriage.

"When issues and problems arose this was billed out at my usual charge-out rate, never anything added, sometimes small deductions," his statement said.

The solicitor said the sons' lawyer, Brian Kennedy, was questioning everything he did and he sought the advice of two other lawyers on how to manage the trust.

The man claimed that because he worked by himself, without partners, he had no one to ask for advice and so had to pay for it.

"Yes, I was conscious all the time of the money and the mounting bills, absolutely," the statement said.

The matter was eventually taken to the Auckland District Law Society for a cost review and he was ordered to pay back $8300.

The society said many of the fees would not have been incurred had it not been for the sons and the actions of their lawyer.

One of the lawyers who gave the solicitor advice, Stephen Piggin, told defence counsel Paul Davison QC that he advised the defendant to accept the Law Society's cost review.

"It wasn't a small fee, which is one reason I advised him to consent to the review," Mr Piggin said.

"It was a considerable amount of money in laypersons' terms anyway."

He told the court he did not believe the solicitor needed the services of two lawyers to advise him on how to administer the trust.

Mr Piggin said he gave evidence at the Law Society review that the fees were fair.

"It was for him to arrange to pay the fees. I wasn't aware where the money was coming from."