Solicitor with ‘nowhere to turn’ used client funds to pay domestic and professional debts

A solicitor took money belonging to one client to pay back another because he claimed his financial and family problems left him with “nowhere to turn”, the High Court has heard.

Rody Kelly Corrigan, formerly practising as Rody Kelly Corrigan Solicitors at Glass House, Coke Street, Smithfield, Dublin, was suspended from the roll of solicitors for 12 months by the president of the High Court, Mr Justice David Barniville, for what the judge said was admitted dishonesty and misconduct.

The judge said the investigation began in July 2019 following a complaint from one of Mr Kelly Corrigan’s clients who had engaged him to act in the purchase of an apartment in Dublin.

Although the client provided the balance of the purchase price to the solicitor to close the sale, the monies paid over to the vendor’s solicitors were €50,000 less than the sum due.

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Deficit

Mr Kelly Corrigan immediately admitted to the society’s investigator that there was a deficit in his client account. The deficit, which totalled €64,742, had arisen when he took €17,500 from a settlement of a case for another client to pay his mounting debts related to professional indemnity insurance, professional and domestic expenses.

He repaid the €17,500 to the client by taking money from the account of the other client who was buying the apartment. He also admitted wrongfully withholding €7,380 due to a senior counsel.

The court heard the client got a personal loan to close the apartment purchase and was later paid €58,466 from the Law Society’s compensation fund.

Mr Kelly Corrigan later reimbursed the society from the sale of his father’s home. The debt to the senior counsel was also repaid by him. He told the investigator he had significant arrears on his mortgage, was the sole earner in his family and his wife had been diagnosed with a life-limiting serious neurodegenerative disease.

‘Nowhere to turn’

He said they had five children, one of whom has increased care needs because of a birth condition. He explained that with his mounting debts, he had “nowhere to turn” and as a result started taking funds from one client to reimburse another.

The regulation of practice committee recommended an inquiry by the Solicitors’ Disciplinary Tribunal, which found him guilty of misconduct by misappropriating the monies. The tribunal did not recommend strike-off but recommended certain conditions on him, primarily that he could not practice as a sole practitioner and should have no access to client monies.

Throughout the process, the solicitor expressed his remorse and shame and pleaded to be given an opportunity to return to practice, the judge said.

The society, however, recommended his strike off to the High Court to discourage other solicitors from such conduct and to maintain the reputation of the profession.

Fine margin

Mr Justice Barniville said that in all the circumstances of the case, and notwithstanding the undoubtedly very serious misconduct involved, he was just about persuaded, by a fine margin, that a strike-off would not be a proportionate sanction in this case.

However, the sanctions recommended by the tribunal would fall short of what was required and he said a 12-month suspension, along with conditions should he return to practice, should be imposed.

The case is to be re-entered by the society if there is any breach of the conditions or repeat dishonesty. Mr Kelly Corrigan must also pay €3,554 for the costs of the society’s application to the court, and €1,152 towards the tribunal’s costs.