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No. 10272-2009

IN THE MATTER OF NATHANIEL BERTRAND FELTON, solicitor

- AND -

IN THE MATTER OF THE SOLICITORS ACT 1974

______________________________________________

Mr J P Davies (in the chair)

Mr K W DuncanLady Bonham Carter

Date of Hearing: 17th December 2009

______________________________________________

FINDINGS

of the Solicitors Disciplinary Tribunal

Constituted under the Solicitors Act 1974

______________________________________________

An application was duly made on behalf of the Solicitors Regulation Authority ("SRA") by

Jayne Willetts, solicitor advocate and partner of Townshends LLP, Cornwall House, 31

Lionel Street, Birmingham, B3 1AP on 3rd June 2009 that Nathaniel Bertrand Felton of 27

Station Road, Barnet, Hertfordshire, EN5 1PW, a solicitor, might be required to answer the

allegations contained in the statement which accompanied the application and such Order

might be made as the Tribunal should think right.

The allegations against the Respondent were that:

1. In allowing the name of his firm to be listed on the Bar Council's Withdrawal of

Credit Scheme on 5th December 2008 for non-payment of Counsel's fees, he had

behaved in a way that is likely to diminish the trust the public places in him or the

profession contrary to Rule 1.06 of the Solicitors Code of Conduct 2007.

2. He failed to deal with the SRA in an open, prompt or cooperative manner or at all in

relation to a complaint by the Bar Council contrary to Rule 20.03 of the Solicitors

Code of Conduct 2007.

3. He failed to account to a client, Mr S, for interest from 11th June 2003 to 31st October2003 in breach of Rule 24 Solicitors Accounts Rules 1998.

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4. He failed to deal with the SRA in an open, prompt or cooperative manner or at all in

relation to a complaint on behalf of Mr S contrary to Rule 20.03 of the Solicitors

Code of Conduct 2007.

The application was heard at the Court Room, 3rd Floor, Gate House, 1 Farringdon Street,

London, EC4M 7NS on 17th

December 2009 when Jayne Willetts appeared as the Applicantand the Respondent appeared in person.

The evidence before the Tribunal included the admissions of the Respondent and a number of

documents handed in by the Respondent.

At the conclusion of the hearing the Tribunal made the following Order:

The Tribunal Orders that the Respondent, Nathaniel Bertrand Felton of 27 Station Road,

Barnet, Hertfordshire, EN5 1PW, solicitor, do pay a fine of 5,000.00, such penalty to be

forfeit to Her Majesty the Queen, and it further Orders that he do pay the costs of and

incidental to this application and enquiry fixed in the sum of 4,886.00.

The Tribunal further Orders that unless the Respondent pays the outstanding Counsels fees

in the sum of 4,353.75, as detailed in the schedule provided by the Bar Council with their

letter dated 16th December 2008, by 1st March 2010, and he provides satisfactory evidence of

having done so to the Solicitors Regulation Authority by the same date, the respondent will

be suspended from practice from 2nd March 2010 indefinitely.

The facts are set out in paragraphs 1 - 7 hereunder:

1. The Respondent, born in 1967, was admitted as a solicitor in 1997 and held a current

practising certificate. He practised on his own account as Nathaniel Felton Solicitors,

27 Station Road, Barnett, Hertfordshire, EN5 1PW.

Allegation 1

2. In December 2008 the Bar Council informed the SRA that the Respondent's firm had

failed to pay Counsel's fees and that a Withdrawal of Credit Direction had been made

against the firm on 5th December 2008. A schedule of outstanding fees provided by

the Bar Council dated 16th December 2008 showed outstanding fee notes from 2nd

May 2003 to 2nd April 2007 in the total sum of 4,353.75. These fees remain

outstanding.

Allegation 2

3. The SRA wrote to the Respondent on 9th and 27th January 2009 and on 5th February

2009 seeking his explanation regarding the Withdrawal of Credit Direction. No

response was received.

Allegation 3

4. Mr S was appointed executor for his late aunt, Mrs N. The Respondent's firm dealt

with the administration of the estate from June 2003. The matter was dealt with byMr B.

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5. The probate file for the estate of Mrs N was transferred from Mr B's former firm to

Nathaniel F Elton Solicitors together with estate monies of 294,738.29 on 11th June

2003. Mr B and the Respondent went into partnership together on 1st November 2003

as Felton Bird Solicitors. The estate monies were transferred to Felton Bird Solicitors

on 31st

October 2003.

6. Mr B's partnership with the Respondent terminated in June 2004 and the probate file

was transferred to Mr B's new firm together with the estate monies. The Respondent

failed to account to his client for interest on estate monies from 11 th June 2003 to 31st

October 2003 in the sum of 1,747.21. An Adjudicator directed on 2nd December

2008 that this be paid with compensation of 400.

Allegation 4

7. The SRA wrote to the Respondent on 14th October 2008 seeking his explanation on

the complaint made by Mr S. The Respondent replied on 28th October 2008 statingthat the interest on the estate monies had been transferred to the new firm of Felton

Bird Solicitors and that he would obtain bank statements to evidence this. These

statements were apparently sent by the Respondent to the SRA by post but were not

received. The Respondent did not reply to further letters requesting the missing

statements.

The Submissions of the Applicant

8. The Applicant confirmed that all the allegations had been admitted. Interest had now

been paid in relation to the estate of Mrs N; however Counsel's fees still remained

outstanding.

9. The Applicant confirmed that the Respondent had admitted the allegations at the

earliest opportunity and had cooperated with the authority throughout. However,

whilst each allegation individually did not appear to be serious, there was a course of

unacceptable conduct exhibited by the Respondent.

10. The Applicant made an application for her costs which had been agreed with the

Respondent in the sum of 4,886.

The Submissions of the Respondent

11. The Respondent confirmed the allegations were all admitted. He had in fact appeared

before the Tribunal on 25th October 2007 and referred to the facts on that occasion as

background to the matters before the Tribunal today.

12. The Respondent provided the Tribunal with copies of the bank statements for Felton

Bird Solicitors which were all addressed to Mr B, who had left the practice by then.

He had acted on the probate of the late Mrs N and the Respondent had only become

involved when the estate moneys were transferred to Felton Bird Solicitors. The

Respondent had been unable to ascertain from Mr B whether the moneys were paid

into a designated client account. The Respondent only did immigration work and didnot hold significant funds on client account whereas Mr B was a specialist in

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conveyancing, probate and matrimonial law so most of the funds in client account

belonged to his clients. The interest had now been paid to Mr S and was paid

promptly as soon as the complaint was made. Mr B had not provided the Respondent

with the cheque books, statements or contact details of the bank manager, or indeed

the files and ledgers in order for the Respondent to check the position.

13. Counsel's fees were still outstanding and the Respondent confirmed he intended to

discharge these within the next two months. The Respondent now ensured that

clients' paid Counsel's fees in advance and that Counsel was paid in advance of work

done. The Respondent would be able to pay three of Counsel's outstanding fees

within the next week and the remainder would be paid after the Christmas break.

14. Regarding the failure to cooperate with the SRA, the Respondent had received a letter

from the SRA regarding the estate of Mrs N on 24th December 2008 who had given

him ten days within which to reply. The Respondent's offices had been closed over

the Christmas break and that was the only letter he had failed to reply to. However,

he had written to the SRA on 24th November 2008 and his letter had set out theposition to them. There was no protracted failure on the part of the Respondent to

reply to the SRA and it was unfair to allege he had been uncooperative. He had

simply failed to communicate for about two and a half months and there was a quick

resolution of the matter.

15. Regarding the correspondence with the SRA concerning the fees due to Counsel, the

SRA had written to the Respondent on 9th and 27th January 2009 and 5th February

2009 which was over a relatively short period. At the same time the Respondent was

the subject of a practice monitoring visit from the PSU at the SRA and was in good

and open communication with them. Indeed, his firm had received a clean bill of

health in March 2009. The Respondent felt at the time that he was being hit by

three/four different SRA Officers from different departments and he requested one co-

ordinating Officer to deal with all matters. The Respondent emphasised that late

communication had taken place rather than no communication. The Respondent had

been told by the SRA that one co-ordinating Officer could not be allocated as the

SRA did not work in that manner.

16. The Respondent had attended a course on the Solicitors Code of Conduct and had also

attended training regarding the Solicitors Accounts Rules. He had invested 10,000

in a new computerised accounts system and indeed had been given an unqualified

Accountant's Report.

17. The Respondent was a sole practitioner employing three staff and due to increasing

regulatory requirements, he regularly worked six and a quarter days per week. He

provided the Tribunal with details of his income from his practice. The Respondent

had underlying health issues and referred the Tribunal to letters from his doctors

giving details of these issues. He was now receiving treatment. The Respondent

asked the Tribunal not to remove his ability to practice as this would be

disproportionate in the circumstances. He had been in some communication with the

S RA, although he accepted it was not over these issues. The SRA had been in his

firm, they had taken a good look around and were happy with what they saw. The

Respondent had felt harassed by the SRA at the time, he was working long hours in

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bad health and simply switched off for those three months. He accepted the errors he

had made and intended to resolve all matters.

18. He accepted his professional relationship with Mr B had ended acrimoniously and

there were still lingering issues. He had realised that he would not be able to resolve

matters with Mr B and had accordingly made the decision to pay all of Counsel'soutstanding fees himself.

The Findings of the Tribunal

19. The Tribunal listened carefully to both parties and considered all the documents

before it.

20. The Tribunal found all of the allegations to have been substantiated, indeed they were

admitted by the Respondent.

21. This was the second time in two years that the Respondent had appeared before theTribunal and the Tribunal viewed the allegations very seriously. The Tribunal

accepted that these allegations had arisen from the same period as the allegations

referred to in the previous appearance, when the Respondent had been in partnership

with Mr B and which resulted in both of them appearing before the Tribunal. The

Tribunal accepted that during this period and subsequently the Respondent had

suffered ill health and had provided medical evidence to confirm this.

22. Since then the Respondent's practice had been visited by the Forensic Investigation

Unit of the SRA and the Practice Standards Unit both of which were satisfied with the

day to day running of the practice. The Respondent had also provided unqualified

Accountant's Reports. He had complied with the Adjudication Order which was the

basis of one of the allegations, and he had also paid outstanding interest on client

funds. The fine imposed at the previous hearing and the Applicant's costs from that

application had also been paid in full.

23. Nevertheless, the Tribunal was concerned about the substantial and outstanding

Counsel's fees and was frankly at a loss to understand why they were still unpaid after

such a lengthy period of time, especially when the majority of those fees related to a

period when the Respondent practised as a sole practitioner. The Respondent had not

provided any proper explanation for the delay in payment of these fees and the

Tribunal was satisfied that his conduct had brought the profession into disrepute aswell as damaging his own reputation.

24. The Tribunal viewed the combined allegations very seriously and Ordered the

Respondent be fined 5,000. The Tribunal further Ordered that if the Respondent did

not pay the outstanding Counsel's fees by 1st March 2010, he should be suspended

from practice from 2nd March 2010 on an indefinite basis. The Tribunal also Ordered

costs as agreed in the sum of 4,886.00.

25. The Tribunal Ordered that the Respondent, Nathaniel Bertrand Felton of 27 Station

Road, Barnet, Hertfordshire, EN5 1PW, solicitor, do pay a fine of 5,000.00, such

penalty to be forfeit to Her Majesty the Queen, and it further Ordered that he do pay

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the costs of and incidental to this application and enquiry fixed in the sum of

4,886.00.

The Tribunal further Ordered that unless the Respondent pays the outstanding

Counsels fees in the sum of 4,353.75, as detailed in the schedule provided by the

Bar Council with their letter dated 16th

December 2008, by 1st

March 2010, and heprovides satisfactory evidence of having done so to the Solicitors Regulation

Authority by the same date, the Respondent will be suspended from practice from 2nd

March 2010 indefinitely.

Dated this 15th day of April 2010

on behalf of the Tribunal

J P DaviesChairman