Tribunal halts Donnellan’s practice after 105 new cases taken while the firm was uninsured.
Solicitor Terence Donnellan has been suspended after a disciplinary tribunal found he opened 105 new client cases while his firm was effectively without insurance.
The Solicitors Disciplinary Tribunal (SDT) said Donnellan’s misconduct between October 2019 and January 2020 represented “shambolic” management that risked damaging public confidence in the legal profession.
Donnellan, who ran The Walkers Partnership as a sole practitioner, admitted failing to notify the Solicitors Regulation Authority (SRA) when his practice first entered an extended policy period, and later when it entered a cessation period. Despite this, he went on to accept 105 new instructions — 48 before 25 November 2019 and 57 afterwards — at a time when the firm had no valid indemnity cover.
The tribunal said his conduct breached multiple rules and principles under both the 2011 and 2019 regulatory regimes. It added that Donnellan also failed to ensure an orderly closure of the firm, leaving clients unprotected and the compensation fund to step in.
Embed from Getty ImagesIn total, the SRA received 28 complaints from clients affected by the collapse of the practice. Although the SRA’s Compensation Fund later paid out to cover losses, the tribunal stressed that many individuals had endured unnecessary stress and uncertainty.
Donnellan, who has more than 30 years’ experience as a solicitor, admitted all allegations. He told the tribunal that poor health, personal circumstances, and practical difficulties — including lack of internet access until December 2022 — had hindered his engagement in proceedings. His cooperation once contact was restored, along with his full admissions and expressions of remorse, were accepted in mitigation.
The tribunal acknowledged his previously unblemished regulatory history, as well as evidence of genuine insight and remorse. It accepted that the misconduct was not planned but reactive, yet concluded that the decision to open 105 cases during the cessation period was a serious lapse of professional judgment.
In assessing sanction, the panel considered the harm caused to public confidence and the scale of the breaches. It ruled that a reprimand or fine would not suffice, given the volume of cases and the failure to close the firm properly. A suspension was necessary to uphold standards and deter others.
Although the tribunal initially viewed six months as proportionate, it reduced the term to three months in recognition of Donnellan’s health issues and the heavy personal toll caused by the firm’s collapse.
Additional restrictions will remain in place indefinitely. Donnellan will not be permitted to act as a manager, owner, or compliance officer in any authorised firm once the suspension ends. These conditions may only be lifted through a successful application to the tribunal.
The SDT stressed that there was no allegation of dishonesty or lack of integrity. The misconduct, it said, arose from poor management rather than intent, but the effect was still damaging to clients and the wider profession.
No order for costs was made because of Donnellan’s financial situation.
Delivering the decision, tribunal chair R Nicholas said the suspension struck the right balance between acknowledging Donnellan’s mitigation and addressing the significant harm caused.
The order took effect from 1 February 2023.