Sims v Craig Bell & Bond - [1991] 3 NZLR 535

Law practitioners — Practitioner and client — Fiduciary relationship — Breach of duty by solicitor — Informal partnership between staff solicitor and firm's client — Staff solicitor arranged advance through firm for client and used proceeds to credit account of another person to whom he owed money — No written authorities to justify transactions — No informed consent given by client — Whether staff solicitor had authority to use proceeds — Whether relationship between staff solicitor and client gave rise to a conflict of interest — Whether firm in a fiduciary relationship with client — Whether responsibilities of such relationship ever modified — Law Practitioners Act 1982, s 89(1) - Solicitors Audit Regulations 1969, regs 26 and 27 - Solicitors Trust Account Rules 1969, rr 6 and 7.

Equity — Fiduciary relationship — Informal partnership between staff solicitor and client — Staff solicitor continued to perform legal work for client — Whether relationship between staff solicitor and client gave rise to a conflict of interest — Whether firm in a fiduciary relationship with client and, if so, whether responsibilities of such relationship ever modified.