In 2012, Perkins Zhawari and his wife Lilian Zhawari (complainants) provided their immovable property (Lot 2 of Stand 91M Bellevue Township, Bulawayo) as security for a credit facility extended by National Foods Limited to Celgrim Bakeries (Private) Limited. The complainants signed a Power of Attorney on 6 November 2012 appointing Manokore & Partners (the respondent's firm) to act as their attorney whenever the debt fell due and remained unpaid. The respondent's firm was also the legal practitioners for National Foods Limited. When Celgrim Bakeries failed to pay the debt (acknowledged at US$10,520.53), the respondent, acting for National Foods Limited, sold the complainants' immovable property to Grace Nyoni for $35,000 in 2014 without obtaining the complainants' consent or a court order. After deducting the debt owed to National Foods, legal fees, and arrear utility bills, a balance of $6,802.54 was due to the complainants, but the respondent remitted this amount to National Foods Limited instead. The complainants lodged a complaint with the Law Society on 20 June 2016, alleging unprofessional conduct.
1. The respondent's name be deleted from the Register of Legal Practitioners, Notaries Public and Conveyancers. 2. The respondent is ordered to pay the expenses incurred by the applicant in connection with these proceedings.
A legal practitioner commits unprofessional, dishonourable and unworthy conduct warranting deregistration where: (1) The practitioner represents two parties with conflicting or potentially conflicting interests, particularly where one party is the practitioner's established client and litigation between the parties is foreseeable; (2) The practitioner sells a client's immovable property without valid legal authority (whether through a valid power of attorney or court order) and without the client's informed consent; (3) The practitioner remits funds held in trust for a client to a third party (even the creditor) without the client's authorization; and (4) The practitioner acts with gross negligence, defined as conduct constituting a marked departure from the standards by which responsible and competent legal practitioners habitually govern themselves. Such conduct goes to the heart of legal practice and justifies the most serious sanction of deregistration, particularly where aggravated by lack of contrition and failure to appreciate the wrongfulness of the conduct.
The Tribunal made several important observations: (1) On the purpose of disciplinary proceedings: They are to protect public confidence in the administration of justice, safeguard the collective interest in professional standards, punish the errant practitioner, and deter similar conduct by others. The proceedings determine fitness to practice, not civil liability. (2) On delays in disciplinary proceedings: While not the respondent's fault, delays are less mitigatory where the respondent shows no contrition. (3) On the purpose of trust accounts: The Tribunal noted the respondent fundamentally misunderstood that trust accounts exist to protect clients' money with "absolute conviction" of safety, and that only the client (not the creditor whose debt has been paid) can give instructions regarding balance funds. (4) On character references: References are "unhelpful and meaningless" unless they demonstrate knowledge of the specific wrongdoings and address the personality traits or character defects that gave rise to the misconduct. (5) On professional responsibility: The respondent should have proceeded against the actual debtor (Celgrim Bakeries) which had provided a liquid acknowledgment of debt and offered movable assets, rather than eagerly selling the sureties' immovable property. (6) The Tribunal observed that a legal practitioner who lacks basic understanding of the Tribunal's functions "has no expectation and right to remain on the register."
This case reinforces fundamental ethical principles for legal practitioners in Zimbabwe and Southern Africa: (1) It confirms the absolute prohibition against acting for parties with conflicting interests, particularly where litigation between them is foreseeable. (2) It establishes that selling a client's property without valid consent or a court order, even purportedly under a power of attorney, constitutes gross professional misconduct. (3) It emphasizes that disciplinary proceedings are sui generis and can proceed parallel to civil litigation, serving different purposes (fitness to practice versus civil liability). (4) It clarifies that the Law Society's opinion on appropriate sanctions should be given significant weight by disciplinary tribunals. (5) It demonstrates that lack of contrition and failure to understand the seriousness of transgressions are significant aggravating factors. (6) The case illustrates that gross negligence in professional conduct, even without direct theft of trust funds, can warrant the most serious sanction of deregistration where it involves abuse of client trust and bypassing legal processes. (7) It confirms that character references are of limited value in mitigation unless they specifically address the misconduct in question.