Arlene Ann Gaynor

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

The Disciplinary Committee of the General Legal Council found attorney Arlene Gaynor (acting for vendors) guilty of professional misconduct on a complaint by the purchaser. She deliberately withheld crucial information from the purchaser's attorney (failing to disclose a Mareva injunction restraining the sale and caveats lodged against the title), represented that the vendors were in a position to close when a court order restrained transfer, called on the purchaser's bank undertaking after her services were terminated and the sale cancelled, and refused to pay over funds belonging to the purchaser. The Committee suspended her for 6 months from 1 July 2004, ordered restitution of $55,220.00 to the complainant, and fixed costs at $40,000.00. The Court of Appeal dismissed her appeal with costs. Although the Committee found she 'failed to act with honesty and integrity,' the decision framed the matter as professional misconduct/breach of Canon 1(b) and did not make an express finding of dishonesty (the standard discussed was 'dishonourable conduct' under Re Cooke).

Duties found breached:

• Uphold public trust in the profession
• No conflict between current clients
• No baseless or threatened misconduct report

Aggravating factors:

• Deliberate withholding of crucial information / telling only 'half-truths' to the purchaser's attorney
• Misrepresented that vendors could close when a court order restrained transfer
• Called on the bank undertaking after services terminated and sale cancelled, and after the undertaking had expired
• Refused to pay over funds belonging to the purchaser