Firm ref: 403148
Sol ref: 193537
Our ref: TRI/3250-2010
Regulatory settlement agreement
1. Mr Clive Gotley (Mr Gotley), sole principal of Gotleys of 2a Bath Street, Frome, Somerset BA11 1DG, until its closure on 30 September 2009, agrees to the following outcome of the investigation into his professional conduct and service under reference TRI/3316-2010 (REG/45656-2009 and REG/44374-2009), RDC/3268-2010, RDC/3779-2010, RDC/3319-2010, RDC/4073-2010, CDT/66956-2010, CDT/66182-2010, CDT/65406-2010, CDT/64269-2010, REG/51217-2010, REG/48187-2010, CRO/122998-2010. Mr Gotley is presently practising as an in-house solicitor.
Background
2. On 10 and 11 February 2009 the Practice Standards Unit (PSU) of the Solicitors Regulation Authority (SRA) carried out a monitoring visit to the firm.
3. The report identified various issues, including a failure to investigate old client account balances on completed matters. Mr Gotley was requested to provide to the SRA confirmation that each of the actions set out in the report would be carried out and to provide copies of any documentation requested. This included evidence that Mr Gotley had dealt with old client balances and returned the monies to clients.
4. Mr Gotley failed to respond and the subsequent investigation dealt with the failure of Mr Gotley to co-operate fully with the SRA in respect to matters relating to the PSU report and Mr Gotley's failure to deliver his accountant's report for the six month period ending 30 September 2009, in breach of the condition on his 2007/2008 practising certificate. The breaches identified were Rule 20.05(1) of the Solicitors Code of Conduct 2007 (SCC) and Rule 20.10 of the SCC.
5. A number of further matters have since been dealt with by the SRA which raise the following additional issues by Mr Gotley:
- 5.1 Failure to reply to correspondence from the Legal Complaints Service (LCS), in relation to a complaint under CRO/117828-2010, failure to comply with a decision to produce a file and failure to comply with the decision awarding compensation in the same matter; contrary to Rule 1.06 and 20.05 of the Solicitors Code of Conduct 2077 (SCC)
- 5.2 Failure to comply with the Adjudicator's decision to award his client compensation and failure to comply with associated directions under matter CRO/119083-2010 contrary to Rule 1.06 of the SCC.
- 5.3 Failure to comply with the Adjudicator's decision in relation to a complaint under matter CRO/114858-2010 and failure to respond contrary to Rule 1.06 and 20.05 of the SCC.
- 5.4 Failure to comply with the Adjudicator's decision arising from the service complaint under matter CRO/122108-2010 contrary to Rule 1.06 of the SCC.
- 5.5 Failure to comply with the Adjudicator's decision arising from the service complaint under matter CRO/122998-2010 contrary to Rule 1.06 of the SCC.
- 5.6 Failure to notify the SRA of practising arrangements and practising uncertificated in breach of S84 and S1 of the Solicitors Act 1974 and Rule 20.02 of the SCC.
- 5.7 Failure to comply with costs directions in 7 separate investigations totalling £6,082.22 contrary to Rule 1.06 of the SCC.
- 5.8 Failure to file an outstanding accountants report for period 1 October 2009 to 31 March 2009.
- 5.9 As a result of the above failures to co-operate with the SRA acted contrary to Rule 20.05 of the SCC.
Admission
6. Mr Gotley admits the breaches referred to in paragraphs 4 and 5 above.
Undertaking
7. Mr Gotley undertakes that within 6 months of the date of this agreement to:
- 7.1 Produce documentary evidence that he has dealt in full with any old client balances as detailed in paragraph 8.3 of the Practise Standards Report for 10/11 February 2009 by returning where possible monies to clients or if not possible by making an appropriate application to the SRA pursuant to Rule 22(1) (h) or in accordance with Rule 22(1) (ga) of the Solicitors' Account Rules 1998;
- 7.2 To deliver to the SRA all outstanding accountants' reports for periods 1 April 2009 to 30 September 2009 and 1 October 2009 to 31 March 2009 and any cease to hold/final accounts report and/or to have obtained any relevant waiver in relation to any or all of the account reports outstanding;
- 7.3. To provide documentary evidence that he has complied in full with all the outstanding directions (to include payments of compensation that are settled by Mr Gotley's insurers) under the Adjudicator's decisions detailed in paragraph 5 above.
- 7.4 To pay to the SRA the monies outstanding under the costs directions totalling £6,082.22.
8. Mr Gotley undertakes that he will not be a sole practitioner in the future.
Regulatory outcome
9. Mr Gotley accepts that the overall circumstances of his misconduct justify a referral to the SDT.
10. Mr Gotley submits that the issues arose out of business failings for which he was responsible but wishes to have the opportunity to rectify matters. On the basis that Mr Gotley complies in full with the undertakings given above Mr Gotley is severely reprimanded by the SRA for the breaches identified in 4 and 5 above.
11. Mr Gotley agrees to pay the costs of the SRA in the sum of £600 within 28 days of receipt of notification from the SRA.
12. This Regulatory Settlement Agreement will be published by the SRA and may be disclosed by the SRA as they see fit.
13. Mr Gotley agrees that he will not act in any way inconsistent with this agreement such as, for example, by denying the misconduct set out in his admission.
14. If the undertakings referred to in paragraphs 7 and 8 above are not complied with, or if Mr Gotley acts in any way inconsistent with this agreement, all issues may be referred for consideration or referral of his conduct to the SDT (or SRA internal decision) on the original facts and allegations and also on the basis that such failure to comply with this agreement may constitute a breach of Rules 1.2, 1.3 and 1.6 of the Solicitors' Code of Conduct 2007.
15. The date of this agreement is 09 January 2012.
Clive Gotley
Carol Westrop
Head of Legal Policy
Solicitors Regulation Authority