Stephen Warne on professional negligence, regulation and discipline around the world

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Entries from November 2007

A little fine for ignoring the Bureau de Spank

November 29th, 2007 · No Comments

A decision of Senior Member Howell on 31 August 2007 has only just hit the screens: Legal Services Commissioner v IDE [2007] VCAT 2244.  A solicitor of 32 years' standing let a file fester in the too hard basket for too long and then 'buried his head in the sand' when the Bureau sent over [...]

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Tags: Discipline · mental illness

Solicitor gets away with fees of $83,000 after estimating at $2,500 and never updating

November 28th, 2007 · No Comments

Ok, ok, that's a bit of an exaggeration, but the solicitor did put out a costs agreement and fee disclosure document which contained no estimate other than $2,500, and did charge $111,000, which was reduced on an assessment — a NSW privatised version of taxation — and did not provide any re-estimates before putting out [...]

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Tags: Professional fees and disbursements · Taxations · costs disclosure defaults

NSW judge refuses to admit affidavit adopting contents of another's affidavit

November 28th, 2007 · No Comments

I provided my 25 handy hints on affidavits earlier. Two of them were:

it is undesirable for one deponent to refer to another’s affidavit and effectively incorporate it by reference; much better to reiterate the whole story in the second witness’s own words;
a few inconsistencies between affidavits enhance their credibility rather than detract from it [...]

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Tags: Uncategorized

Appeal succeeds in Lawcover indemnity dispute with entrepeneurial solicitor

November 28th, 2007 · No Comments

I posted about Swart v Carr here and here.  It is a decision about whether a solicitor's liability for certain entrepeneurial activities undertaken by him 'was incurred "in connection with" "the business of practising as a solicitor".  The trial judge answered affirmatively.  Now Justice Palmer's decision has been reversed by the New South Wales Court [...]

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Tags: Insurance

Director of company counterclaiming for negligence in professional fees claim pays costs personally

November 28th, 2007 · No Comments

In Chantrey Vellacott v The Convergence Group PLC [2007] EWHC 1774 (Ch) chartered accountants sued their former client for a quarter of a million pounds sterling in fees. They were met with one of those absurd counterclaims which such suits often generate, for negligence, claiming 115 million pounds sterling in damages. The defendant and [...]

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Tags: Professional fees and disbursements

Yet another corporate counsel privilege case; the US position.

November 28th, 2007 · 1 Comment

Even though legal professional privilege, duties of confidentiality, and other evidentiary privileges are something I try to keep up with, and though I have just advised a litigation funder on the subject, I would be challenged by an urgent brief to argue the privilege of a communication between in-house counsel and a staff member [...]

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Tags: Ethics · duties of confidentiality · legal professional privilege

Auditors' liability for failure to 'blow whistle' on fraud

November 24th, 2007 · No Comments

English firm CMS Cameron McKenna has published a case note on Case Stone & Rolls Limited (in liquidation) v. Moore Stephens (a firm) [2007] EWHC 1826 (Comm). It is a decision which considers the rule ex turpi causa non oritur actio in the context of a professional liability claim, in this case to a claim [...]

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Tags: Negligence · defences

Misconduct constituted by ignoring the Bureau

November 23rd, 2007 · No Comments

In the last post, a solicitor ignored the Bureau de Spank for 3 months, a default explicable by personal circumstances and depression during the relevant period.  In Legal Services Commissioner v JEH [2007] VCAT 2181 (27 September 2007), a Warragul solicitor ignored the Commissioner for almost 6 months. The reasons are broad-brush in their approach [...]

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Tags: Discipline · Misconduct · Unsatisfactory conduct

How to distinguish between unsatisfactory professional conduct and professional misconduct under the new Act

November 23rd, 2007 · No Comments

The definitions of the greater and lesser disciplinary offences under the Legal Practice Act, 1996 and the new Legal Profession Act, 2004 are different.  Under the old act, the one was distinguished from the other by the absence or presence or wilful contravention of norms, or recklessness as to whether conduct would contravene norms. No [...]

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Tags: Discipline · Misconduct · Unsatisfactory conduct · mental illness

Rule against charging for storing old client files

November 22nd, 2007 · 1 Comment

Update, 15 January 2008: Senior Member Howell decided costs and penalty on 17 December 2007: [2007] VCAT 2465.  The Commissioner sought an injunction to restrain the solicitor from repeating the conduct.  Unnecessary, said Mr Howell, who refused to make any such order.  Now that the solicitor has had the law clarified, as he was entitled [...]

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Tags: Unsatisfactory conduct · Vic Solis' Conduct Rules