A suburban sole practitioner who charged excessive legal fees in the administration of two estates, and breached his fiduciary duty to one of those estates, has been ordered to pay compensation and repay the overcharged costs.
Glenroy solicitor, Mr Frank Horvat, pleaded guilty to two charges of professional misconduct, one charge of common law misconduct and one of unsatisfactory professional conduct brought by the Legal Services Commissioner following his improper handling of two estate matters.
The Commissioner brought the two charges of professional misconduct against Mr Horvat for charging legal costs well beyond those which were appropriate for the type and amount of work done in the administration of two deceased estates.
Mr Horvat failed to obtain a sworn valuation on a property from one of the estates, and then sold that property to his daughter. The sale thereby returned a lesser amount than could have been obtained if the property had gone to auction.
Mr Horvat also failed to inform one client in writing when preparing a will that he had included a provision entitling him to charge legal costs for the administration of the estate.
In pleading guilty to the charges, Mr Horvat gave the Victorian Civil and Administrative Tribunal an undertaking that he would not seek or accept any future appointment as an executor of a deceased estate, with the exception of that of a family member.
VCAT reprimanded Mr Horvat on all four charges, ordered him to pay fines totalling $15,000 to the Legal Services Board and to pay $15,000 of the Commissioner’s costs incurred in bringing the matter to VCAT. Mr Horvat was also ordered to repay $32,000 in overcharged costs to one estate, and to pay $21,000 in overcharged costs and $25,000 in compensation to a second estate for the improper sale of a property.
Mr Horvat was also ordered to complete three additional units of continuing professional development in the area of legal costs in addition to his normal CPD obligations.
For further information see the VCAT decision.