A solicitor has been disciplined by the Solicitors Regulation Authority (SRA) after breaching a professional undertaking, resulting in a significant financial penalty.
Consultant solicitor Godwin Ehujor, from the South London firm Clapham Law, was fined nearly £3,500 by the SRA. This penalty constitutes a third of his annual income, highlighting the seriousness of the breach.
The issue arose during a property transaction, where Mr. Ehujor acted for a client intending to sell the property. Another law firm, referred to as Firm B, was representing the client’s wife in this matter. Mr. Ehujor provided Firm B with an undertaking that Clapham Law would retain the net proceeds of the sale until the parties reached an agreement on their respective shares. In the absence of such an agreement, the matter was to be resolved through court or arbitration.
However, the transaction, completed promptly, led to complications as there was no resolution by December 2020. Consequently, Mr. Ehujor’s client initiated legal proceedings to declare their entitlement to the proceeds.
During a case management conference in May 2022, it was revealed that legal fees had been inappropriately paid from the net proceeds. This disclosure prompted the court to request evidence, which showed sixteen payments totalling £37,500 had been made, covering various fees and costs, including payments to the firm and counsel.
The SRA found that Mr. Ehujor’s actions demonstrated a reckless disregard for regulatory obligations and risked harming the involved parties. The conduct was deemed to lack integrity, undermining public trust, and constituting a breach of the rules surrounding professional undertakings.
Furthermore, Mr. Ehujor was described as lacking insight or remorse for his actions, which contributed to the severity of the disciplinary action. The penalty was calculated as 32% of his annual gross income, totalling £3,478, alongside an order to pay £1,350 in costs.
This case underscores the critical nature of adhering to professional undertakings in legal practice and the consequences of failing to do so. The SRA’s actions reflect the importance of maintaining public trust and regulatory compliance.
