'Gross abuse of vulnerable client': Scathing disciplinary decision involving B.C. lawyer
A B.C. lawyer committed "egregious" misconduct that amounted to "a gross abuse of his vulnerable client" that left her "destitute," according to a scathing disciplinary decision issued by a law society tribunal.
The decision, posted online by Monday, followed a 16-day hearing in 2021 that found Peter Darren Steven Hart committed misconduct when handling a family law case in 2013.
The client came to Hart seeking spousal support after the breakdown of her marriage. Once a high-earning mining executive, the tribunal heard that the marriage had taken a devastating toll on her mental health.
"In the years leading up to their separation, she became unable to work, suffered a mental breakdown, attempted suicide and was involuntarily hospitalized," according to the 2021 hearing documents.
When she sought out Hart, she was still "under psychiatric care" and although her former spouse had assets valued between $15 million and $17 million, she was "financially destitute."
Hart was found to have committed three separate types of misconduct, which the tribunal summarized as "exploiting a vulnerable client for his own benefit" while providing "an abysmal quality of service."
'ABSURDLY UNFAIR AN UNJUST' RETAINER
At the 2021 hearing, the tribunal found that Hart had pressured the client into an arrangement where he would receive 20 per cent of any financial settlement he negotiated instead of paying an hourly fee.
"The file was a straightforward family matter in which the client was certain to receive a large settlement. No special skill or service was required or provided. (Hart) provided minimal work," the tribunal found.
Once that was arranged, Hart never met with the client, never brought an application for spousal support, negotiated a settlement without consulting her, and ultimately misappropriated roughly $900,000 once that settlement was paid, according to the 2021 hearing documents.
Hart used a chunk of that money to take his entire staff on a trip to Las Vegas, the 2022 decision says.
In 2018, the client sought a review of Hart's fees. According to the tribunal's decision, that review found the service Hart provided led to the client getting "her worst-case result had the matter proceeded to trial."
While Hart had pocketed $1,020,000 – which the tribunal notes was far more than he was entitled to even under the "absurdly unfair and unjust" payment arrangement – the review found the appropriate fee would have been $125,000.
Hart was ordered to pay back the difference of $895,000.
"He has only provided a little over $18,000 – less money than he spent taking his entire office on a holiday in Las Vegas," the 2022 disciplinary decision reads.
'CAVALIER' DISREGARD FOR CLIENT'S VULNERABILITY
In addition to his financial misdeeds, Hart was found to have breached his duty to provide service "at least equal to that which would be expected of a competent lawyer in a similar circumstance."
The failures on that front included not taking any notes, not taking the client's instructions, acting in a way that directly contradicted the client's wishes, not giving her the information she needed to make decisions, and making settlement offers without her knowledge or consent, the law tribunal said.
All of this, the tribunal found, was a "gross culpable neglect of his duties" to the client – particularly given her vulnerability.
"Common sense requires a lawyer working with a mentally ill client to take extra care to ensure the client has a good understanding of the case, the lawyer’s advice and has provided clear instructions," the 2021 decision reads.
"Unfortunately, in this case, the Respondent appeared to view the client’s mental illness as a reason to act without instructions and put his own interests ahead of the client’s."
FAILURE TO 'ACT WITH HONESTY AND INTEGRITY'
The tribunal found Hart was "deliberately dishonest" in several instances. These included telling the client into thinking she would still be able to pursue spousal support after negotiating a settlement that explicitly ruled out that option, lying about why he cancelled a scheduled mediation session, and misleading her about how much she could expect from a settlement, it said.
"More than failing to act without honesty, candour and integrity, the Respondent purposely deceived the Client for his own profit," the 2021 decision says.
IMPACT ON CLIENT
The 2022 disciplinary decision outlines some of the ongoing fallout for the client, who hired Hart as a lawyer almost a decade ago.
"She is financially destitute. What should have been an adequate divorce settlement to ensure her future financial security was decimated (Hart)," the decision reads, adding the ongoing litigation to try and recover her money, as well as the disciplinary proceedings, have prolonged her suffering and undermined her attempt to heal.
"The client has suffered irreparable emotional and financial harm that she will never recover from."
CONSEQUENCES FOR LAWYER
The penalty recommended is disbarment. However, the tribunal notes that Hart has been prohibited from practising law since 2021 as a penalty for his misconduct in another case.
Still, the tribunal said it is the only fitting consequence for the "deliberate and calculated abuse of a mentally ill client for the (lawyer's) own financial benefit." The need to condemn and prevent similar misconduct was also emphasized, as was the way in which Hart's actions had "dishonoured" the legal profession.
Hart did not attend the hearing where the decision on disciplinary action was handed down.
He has also been ordered to pay the law society's costs, which total $60,840.
CTVNews.ca Top Stories
How quietly promised law changes in the 2024 federal budget could impact your day-to-day life
The 2024 federal budget released last week includes numerous big spending promises that have garnered headlines. But, tucked into the 416-page document are also series of smaller items, such as promising to amend the law regarding infant formula and to force banks to label government rebates, that you may have missed.
Which foods have the most plastics? You may be surprised
'How much plastic will you have for dinner, sir? And you, ma'am?' While that may seem like a line from a satirical skit on Saturday Night Live, research is showing it's much too close to reality.
opinion I've been a criminal attorney for decades. Here's what I think about the case against Trump
Joey Jackson, a criminal defence attorney and a legal analyst for CNN, outlines what he thinks about the criminal case against Donald Trump in the 'hush money trial.'
$3.8M home in B.C.'s Okanagan has steel shell for extra wildfire protection
A home in B.C.'s Okanagan that features a weathering steel shell designed to provide some protection against wildfires has been listed for sale at $3.8 million.
Diver pinned under water by an alligator figured he had choice. Lose his arm or lose his life
An alligator attacked a diver on April 15 as he surfaced from his dive, nearly out of air. His tank emptied with the gator's jaws crushing the arm he put up in defence.
Psychologist becomes first person in Peru to die by euthanasia after fighting in court for years
A Peruvian psychologist who suffered from an incurable disease that weakened her muscles and had her confined to her bed for several years, died by euthanasia, her lawyer said Monday, becoming the first person in the country to obtain the right to die with medical assistance.
Mystery surrounds giant custom Canucks jerseys worn by Lions Gate Bridge statues
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
Celebrity designer sentenced to 18 months in prison for smuggling crocodile handbags
A leading fashion designer whose accessories were used by celebrities from Britney Spears to the cast of the 'Sex and the City' TV series was sentenced Monday to 18 months in prison after pleading guilty in Miami federal court on charges of smuggling crocodile handbags from her native Colombia.
Wildfire leads to evacuation order issued for northeast Alberta community
An evacuation order was issued on Monday afternoon for homes in the area of Cold Lake First Nation.