Arlene Ann Gaynor

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

The attorney, acting for vendors in a $8m property sale, failed to disclose to the purchasers' attorney the existence of a mareva injunction and caveats lodged by Garland Ferguson that prevented completion, and made express misrepresentations that her clients were in a position to close, inducing the purchasers to pay funds. She also improperly ignored her clients' termination of her retainer and called on an expired bank undertaking (CIBC $6.8m) when no longer authorised, and delayed refunding purchasers' money. The Panel found she made a 'misrepresentation/deception' upon her colleague, was 'not speaking the truth,' and failed to act with honesty and integrity, in breach of Canons VI(a) and I(b). Although the tribunal found her conduct dishonest in her dealings with her colleague, it noted the misconduct did not involve dishonesty in handling money, and imposed a six-month suspension rather than disbarment, plus restitution of interest ($55,220.25) and costs ($40,000).

Duties found breached:

• Uphold public trust in the profession
• Good faith and courtesy to colleagues

Aggravating factors:

• Displayed no remorse and attempted to justify her conduct to the end
• Failed to appreciate the gravity of her misconduct
• Long practice experience (since 1994) meant she ought to have known the required standards
• Wrongfully withheld refund for about six months after complaint laid, with no interest paid

Mitigating factors:

• No prior disciplinary record
• Misconduct did not involve dishonesty in the handling of client/purchaser money