Description

Professional Ethics & Practice

1. George received the sum of Kshs.5,000,000/ from his client to hold as a stakeholder in a conveyancing transaction. He promptly applies the money to offset legal fees owed to him by the client. The police are considering criminal action against George. George’s defense is that he applied the money received from his client to settle outstanding fees in some 50 litigation files where his client owes him about Kshs.10,000,000/=. He seeks your advice on:
   1. Whether or not he has violated any ethical or legal prohibitions. (6 marks)
   2. Assuming he has violated any ethical or legal prohibitions, what sanctions he could face if he was charged before the disciplinary tribunal. (6 marks)
   3. Whether or not the criminal case against him is sustainable in law and if so, what are the possible criminal penalties (3 marks)