Peter Merrell Kilty

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

Peter Merrell Kilty, a sole practitioner solicitor, was found to have deliberately made improper transfers of clients' money from client to office account to fund his practice during financial difficulties between 2002 and 2004, creating a cash shortage exceeding £100,000. He issued bills that could not be justified and were not delivered to clients. Although he admitted the facts he denied dishonesty, but the Tribunal found dishonesty proven applying the Twinsectra test, rejecting his medical mitigation as insufficiently supported. He was struck off the Roll and ordered to pay costs of £5,112.04.

Duties found breached:

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

Aggravating factors:

• Deliberate misappropriation of client monies over a two-year period (2002-2004)
• Cash shortage in excess of £100,000 which he was unable to replace
• Issued bills that could not be justified and were not delivered to clients (e.g. £22,000 billed for 2.5 hours' work in W Deceased matter)
• Significant claims on the Compensation Fund in excess of £96,700 borne by the profession

Mitigating factors:

• Suffered from mental ill-health and made a suicide attempt during the period
• Cooperated with the interveners and admitted the facts
• Apologised for distress caused to clients
• No evidence of excessive lifestyle; funds used to prop up the practice