Peter Merrell Kilty

Findings — machine-extracted (anthropic-batch:claude-opus-4-8); verify against the decision

Peter Merrell Kilty, a sole practitioner, admitted the facts but denied dishonesty in relation to improper transfers of client monies to office account over the period February 2002 to February 2004, causing a cash shortage in excess of £100,000. He raised unjustified bills (including £22,000 billed for 2.5 hours' work and a £9,400 bill where the estimate was £500) and transferred those sums to office account without delivering bills to clients, to fund his practice during cashflow difficulties. The Tribunal, applying Twinsectra v Yardley, made an express finding of dishonesty, rejecting his medical evidence as insufficient to show he was not responsible for his actions. He was struck off the Roll and ordered to pay costs of £5,112.04. No fine was imposed.

Duties found breached:

• No improper use of client money
• Accounting records, reconciliation and reports
• No improper solicitation or touting

Aggravating factors:

• Misconduct occurred over a two-year period (early 2002 to early 2004), not isolated incidents
• Significant claims in excess of £96,700 made on the Compensation Fund with further claims pending
• Cash shortage in excess of £100,000 (£124,478.11) which he was unable to replace
• Bills grossly excessive and unjustified (e.g. £22,000 billed for 2.5 hours of work in W Deceased matter)

Mitigating factors:

• Respondent suffered from mental ill-health following intervention
• No evidence of an excessive lifestyle; money used to fund the practice
• Apologised for distress caused to clients
• Cooperated with the interveners