Attorney Misconduct in Jamaican Property Transactions: Breach of Fiduciary Duty and Client Fund Misuse

• Attorneys hold completion funds on trust and must apply them only for the authorised purpose.
• Misappropriation of client funds is professional misconduct and a criminal offence.
• The General Legal Council investigates and disciplines attorneys who breach their professional duties.
• Clients whose funds are misappropriated may claim against the attorney’s professional indemnity insurance.
• Complaints about attorney misconduct should be directed to the GLC at generallegalcouncil.org.

The attorney conducting a conveyancing transaction in Jamaica occupies a position of significant trust. Completion funds — the purchase price, mortgage advances, and other sums paid by the buyer through the conveyancing process — pass through the attorney’s client account and must be applied strictly in accordance with the client’s instructions and the terms of the conveyancing transaction. An attorney who uses client funds for any other purpose — to meet their own personal or business expenses, to service another client’s shortfall, or simply because the client funds are in their account and accessible — is breaching a trust. The damage to the client is immediate and potentially irreversible: if the funds are dissipated before the transaction completes, the buyer may lose both their deposit and their home, while still being liable for the purchase price.

The Role of the General Legal Council

The General Legal Council is the regulatory body responsible for the discipline of attorneys in Jamaica. The GLC has the power to investigate complaints about attorney conduct, hold disciplinary hearings, impose fines, suspend attorneys from practice, and in serious cases strike them off the roll entirely. Any client who believes their attorney has misappropriated funds or otherwise acted in breach of their professional duties can file a complaint with the GLC at generallegalcouncil.org. Where the attorney has committed a criminal offence — which the misappropriation of client funds almost certainly will — a parallel complaint to the JCF is appropriate. The GLC maintains the Attorneys’ Guarantee Fund, which provides limited compensation to clients whose attorneys have defaulted on their professional obligations, subject to the conditions and caps set out in the relevant legislation.

Protecting Yourself When Instructing an Attorney

Clients can take steps to reduce their exposure to attorney misconduct. Verifying that an attorney is on the roll of the GLC before instructing them is a basic protection. Asking an attorney to confirm in writing the terms on which they hold client funds, and requesting regular written updates on the status of funds paid, creates a documented record of the attorney’s obligations. For high-value transactions, using a well-established firm with a clear professional reputation reduces risk, as does obtaining a personal recommendation from a trusted source. Clients who have concerns about how their attorney is handling their funds should not hesitate to ask for an account of the funds and, if satisfactory answers are not forthcoming, to instruct a different attorney and to file a complaint with the GLC.

Follow Jamaica Homes on Youtube @jamaicahomes and Instagram @jamaica_homes and on Facebook @jamaicahomesnews Send us a message or email us at onlinefeedback@jamaica-homes.com or editor@jamaica-homes.com