2005: No. 02 July-August
Surrey, BC
Called to the bar: February 12, 1985
Discipline hearing: August 24, 2004
Panel: David A. Zacks, QC, as a single-Bencher panel by consent
Report issued: August 27, 2004 (indexed as 2004 LSBC 29)
Counsel: Todd R. Follett for the Law Society and Jerome D. Ziskrout for Mr. Smith
Mr. Smith had a shortage in his trust account from December 2001 to October 2002. The shortage resulted from paying a disbursement in excess of funds held for a client following a recording error in his accounting records.
Mr. Smith failed to immediately eliminate the trust shortage or to report that shortage to the Law Society as required by Rule 3-66. Mr. Smith also failed to maintain the accounting records necessary to enable the Law Society to properly evaluate the circumstances surrounding trust shortages, contrary to Rule 3-60(c)(ii).
For several months in 2002 Mr. Smith failed to prepare monthly trust reconciliations in a timely fashion, contrary to Rule 3-65(4).
The hearing panel found and Mr. Smith admitted that he had breached the Law Society Rules.
The panel noted that Mr. Smith had paid little attention to the administrative side of his practice. He had no dishonest intent, and no client had suffered in these circumstances. Moreover, he had taken corrective measures to prevent a reoccurrence. The panel agreed to a joint submission of counsel on penalty and ordered that Mr. Smith: