The appellant lawyer, acting as an executor, advanced an unsecured loan from estate assets to an employee to placate a client.
The Law Society Hearing Panel found this to be conduct unbecoming a lawyer and a breach of fiduciary duty.
The Appeal Panel affirmed the decision.
On appeal to the Divisional Court, the appellant argued the panels failed to properly apply the prudent investor test under section 27 of the Trustee Act.
The court dismissed the appeal, finding the standard of review was reasonableness and the panels correctly concluded the investment was imprudent as it was motivated by personal interests rather than an overall investment strategy.