[2023] WASC 218
General information, not legal advice.
Supreme Court of WA
2023-06-20
Lundberg J
Original judgment source is linked above.
(a) his affidavit sworn on 1 April 2023 (which includes Attachments A1 to A10) (First Azad Affidavit);
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> (b) a letter sent by the plaintiff to the court dated 12 April 2023 (which is entitled 'Letter of explanation to the Chamber') (Azad Letter);
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> (c) his affidavit sworn on 12 April 2023 (marked 'Affidavit Verifying List of Documents') (Second Azad Affidavit); and
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> (d) his further affidavit sworn on 19 April 2023 (Third Azad Affidavit).
(a) the affidavit sworn by Patrick Connor McCarthy on 18 April 2023 (First McCarthy Affidavit);
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> (b) the affidavit sworn by Mr McCarthy on 1 May 2023 (Second McCarthy Affidavit); and
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> (c) a clarifying affidavit sworn by Charmaine Su Ting Kwok on 8 May 2023 (Kwok Affidavit).[4]
(a) First, to ensure the protection of confidential information that has been provided by the client to the lawyer in the course of the lawyer/client relationship.
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> (b) Second, to prevent a breach of a supposed fiduciary duty of loyalty owed by the lawyer to the former client notwithstanding the termination of the retainer (that is, in general terms, to intervene in cases of conflicts of interest).
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> (c) Third, when the court considers it necessary to do so in order to ensure the due administration of justice, and to control the conduct of practitioners as its officers.
(a) the court always has inherent jurisdiction to restrain solicitors from acting in a particular case as an incident of its inherent jurisdiction over its officers and to control its processes in aid of the administration of justice;
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> (b) the test to be applied is whether a fair‑minded, reasonably informed member of the public would conclude that the proper administration of justice requires that a lawyer should be prevented from acting, in the interest of the protection of the integrity of the judicial process and the due administration of justice, including the appearance of justice;
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> (c) the jurisdiction is exceptional and is to be exercised with caution;
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> (d) due weight should be given to the public interest in a litigant not being deprived of the lawyer of his or her choice without good cause; and
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> (e) the timing of the application may be relevant, in that the cost, inconvenience and impracticality of requiring lawyers to cease to act may provide a reason for refusing to grant relief.
The plaintiff approaches the law practice on Tuesday, 21 March 2023
Instructions are declined on Wednesday, 22 March 2023
Memorandum of appearance and Order 9A notice were then filed
Plaintiff offers to consent to the law practice acting
Findings as to the information imparted on 21 March 2023
(a) that proceedings for defamation had been commenced by the plaintiff and the matter was allocated to my chambers;
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> (b) that the defendant is a doctor with whom the plaintiff formerly practised;
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> (c) there is a reference to 'def J' accompanied by the words 'low threshold to s/aside', which I infer[16] is a reference to the possibility of the plaintiff obtaining default judgment against the defendant for failure to enter an appearance and the indication (presumably made by the legal practitioner) that the threshold to set aside a default judgment is low;
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> (d) there is a reference to no other lawyers being able to assist and Law Firm A is identified;
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> (e) there is a reference to 'other proceedings to commence against others'; and
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> (f) finally, the file note includes the words 'JS - list of party names for c. check No o/ docs Email', which I infer is a record that the legal practitioner indicated to the plaintiff he should provide a list of relevant party names for the purposes of a conflict check, that he should not provide any other documents to the law practice, and that the legal practitioner provided her email address to the plaintiff.
Later the same afternoon, I received a call from Ms Jasmine Sims, and we talked around 20 minutes. While she was already had some information about my Defamation case and general descriptions of my opponents, I did provide to her more detailed information around the totality of the existing legal disputes, including my related General Protection matter in front of the Honourable Justice Jackson at the Federal Court of Australia. I have also provided her with further written information including the precise information about any possible parties in my matters, so Steedman Stagg would have the opportunity to run 'a more complete conflict check' (A9). After obtaining those thorough information from me, including my planned litigation strategy against the various involved persons from the other party ....[17]
...Steedman Stagg had already been in possession of some sensitive information about my legal arguments and disputes in the upcoming proceedings.[18]
... as the mentioned firm is already in possession of sensitive information and action plans that I described to them, in relation to the steps that I wish to take in my legal path in the upcoming months.[19]
(a) the plaintiff had commenced a defamation action against the defendant, and was seeking legal representation in that proceeding;
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> (b) the defendant had not yet entered an appearance in the action, the plaintiff was considering whether to bring an application for default judgment, and the legal practitioner observed that the threshold for setting aside default judgment (if obtained) was low;
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> (c) the plaintiff was considering whether to initiate other proceedings against various other parties, including for defamation and for matters connected to a cancelled commercial deal; and
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> (d) the plaintiff described the other parties he wished to sue, most likely in general terms (which he later confirmed by the email sent to the law practice following the telephone call).
10.1 A solicitor and law practice must avoid conflicts between the duties owed to current and former clients.
10.2 A solicitor or law practice who or which is in possession of information which is confidential to a former client where that information might reasonably be concluded to be material to the matter of another client and detrimental to the interests of the former client if disclosed, must not act for the current client in that matter UNLESS -
10.2.1 the former client has given informed consent to the disclosure and use of that information, or
10.2.2 an effective information barrier has been established.
former client for the purposes of Rule 10.1, may include a person or entity that has previously instructed -
(a) the solicitor,
(b) the solicitor's current law practice,
(c) the solicitor's former law practice, while the solicitor was at the former law practice,
(d) the former law practice of a partner, co-director or employee of the solicitor, while the partner, co-director or employee was at the former law practice,
or, has provided confidential information to a solicitor, notwithstanding that the solicitor was not formally retained and did not render an account. (underlining added)
Is SSL's approach in my matter, using the provided information by me to them to chase my wealthy and influential opponents with the hope of having a part in their representation, an approach that the court of law wishes to promote, and the justice system would like to see it more often?
F. Disposition - protection of confidential information
(a) the plaintiff deposes that he had 'discussed the current matter with around 10-12 legal firms in Perth' up to 1 April 2023;[24]
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> (b) the plaintiff stated within a defamation concerns notice he issued to another person in December 2022 that he 'will definitely sue [the defendant] in the Supreme Court of WA for repulsive act of defamation of my character';[25]
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> (c) the plaintiff had sent a copy of the writ of summons in the current action to various third parties;[26]
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> (d) the plaintiff had already informed the present defendant of his desire to seek default judgment;[27]
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> (e) the plaintiff had sent a text message to a third person to notify them that he had commenced the current action;[28] and
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> (f) the plaintiff has already commenced proceedings in the Magistrates Court against the defendant with respect to the commercial deal between them.[29]
G. Disposition - due administration of justice Overview
(a) it is safe to conclude that the due administration of justice, including the appearance of justice, requires that solicitors treat conflict checking processes from members of the public with a proper degree of solemnity and importance;
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> (b) members of the public who are in need of legal representation are entitled to assume the information they provide to their prospective lawyers will be treated in this manner, and will not be provided to third parties beyond the law practice, unless they first give their consent to this course; and
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> (c) the interests of the administration of justice are not consonant with conduct which might discourage members of the public from actively seeking legal representation, perhaps out of apprehension or concern their legal affairs may be disseminated beyond the legal practitioner with whom they speak.
(a) the nature, circumstances and purpose of the enquiry made by the plaintiff (as a prospective client) to the law practice;
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> (b) whether the law practice's approach to an external party, without the plaintiff's consent, was foreign or extraneous to the purpose of the plaintiff's enquiry;
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> (c) the protective measures (if any) the law practice put in place to minimise any risks of disclosure of confidential information it received, or to address any administration of justice concerns;
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> (d) the administration of justice considerations arising where a legal practitioner acts against a party following a conflict checking process; and
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> (e) the public interest in permitting the defendant in this case to be represented by his chosen lawyers, and not to deprive him of that opportunity without good cause.
(a) the enquiry made by the plaintiff was limited in nature, and resulted in a prompt decision by the law practice that it could not act for him;
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> (b) the law practice made no representations or commitments to the plaintiff that it could represent his interests in the matter, and sought no extraneous information from the plaintiff other than sufficient information to undertake the conflict checking process;
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> (c) the communication with the insurer was not extraneous or foreign to the purposes of the plaintiff's enquiry in circumstances where medical practitioners were involved in the dispute and the law practice partner had a long‑standing history with that insurer, although it was noticeably undertaken without the plaintiff's consent; and
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> (d) the interests of the plaintiff must be balanced against the interests of the defendant in allowing him to be represented by a firm of his choice.
[1], [2], [2(a)], [2(b)], [2(c)], [3], [4], [5], [6], [7], [8], [9], [10], [11], [12], [16], [18], [19], [20], [20(a)]
These paragraphs are objected to by the defendant on several grounds, but all of the objections include the ground of relevance.
These paragraphs contain information which is irrelevant to the interlocutory application and merely provide a form of background narrative or explanation of the plaintiff's perceived duty to the court, the filing of certain court and other documents, and his desire to follow court process.
These paragraphs are insufficiently relevant to the interlocutory application and will be struck out on that basis.
The paragraphs are also, in some respects, little more than bare submissions without any proper foundation for the statements. Unless otherwise struck out on another basis, I will receive these paragraphs as merely submissions.
These rulings leave the following paragraphs as the remaining paragraphs of the affidavit:
[13], [14], [15], [17], [20(b)], [20(c)] and [21]
These paragraphs overlap with the above ground. These paragraphs are also challenged on the basis they contain scandalous allegations.
I consider parts of these paragraphs should be struck out on the basis they contain scandalous and irrelevant material.
As to [6], the words 'he again ignored his duty towards the court and' should be struck out on these grounds.
As to [7], the whole paragraph should be struck out on these grounds.
As to [11], the final sentence should be struck out on these grounds.
These paragraphs are objected to on the basis they are irrelevant to the interlocutory application, represents submissions and are also not responsive to the Kwok Affidavit (being the basis on which the affidavit was permitted to be filed).
These paragraphs contain material in the nature of submissions and are, in any event, not responsive to the matters dealt with in Ms Kwok's affidavit.
Each of these paragraphs should be struck out on these grounds, and I will receive the paragraphs as mere submissions.
I certify that the preceding paragraph(s) comprise the reasons for decision of the Supreme Court of Western Australia.
[1] Those earlier reasons specifically dealt with an application brought by the plaintiff, which was heard on 16 May 2023. That application sought to join an additional defendant to the proceedings and sought various restraints against that party.
[2] For convenience, in these reasons I will refer to the relevant law firm as the law practice, the relevant partner of the law firm as the law practice partner, and the relevant solicitor who dealt with the plaintiff as the legal practitioner.
[3] O 8 r 6(2) RSC has operation in circumstances where the solicitor for a party has died, become bankrupt or is unable to be found.
[4] This affidavit was filed in order to correct a misapprehension the defendant's solicitors were under that certain documents had been appended to the writ of summons as filed. The Kwok Affidavit thus attaches documents referred to in the defendant's submissions at [26.2] to [26.5], which were not in evidence at the hearing on 2 May 2023.
[5] First McCarthy Affidavit, Attachment PCM-1. I infer this was a typographical error and was intended to refer to an 'employment law matter'.
[7] First McCarthy Affidavit, Attachment PCM-2.
[8] First McCarthy Affidavit, Attachment PCM-4.
[11] The approach to MDA National is described in the Second McCarthy Affidavit as being part of the law practice's 'internal conflict check', but the use of the term 'internal' is a misnomer in this context.
[14] First McCarthy Affidavit, Attachment PCM-4.
[15] Second Azad Affidavit, Attachment 3.
[16] I draw this inference from the status of the proceedings and the fact the defendant had not entered an appearance at that stage, as a result of which the plaintiff had communicated with the court his desire to bring a default judgment application (Folio 7).
[17] First Azad Affidavit, page 7. The reference to A9 is to an attachment.
[21] Jones v Dunkel [1959] HCA 8; (1959) 101 CLR 298.
[22] Third Azad Affidavit, page 7, [16].
[23] Sent and Primelife Corporation Ltd v John Fairfax Publication Pty Ltd and Hills [2002] VSC 429 [69] (Nettle J).
[25] Kwok Affidavit, Attachment CSK-1, page 5.
[26] Kwok Affidavit, Attachment CSK-3, page 9.
[27] Kwok Affidavit, Attachment CSK-4, page 11.
[28] Kwok Affidavit, Attachment CSK-5, page 12.
[29] For example, see the letter from the plaintiff to the court and defendant dated 9 March 2023 (Folio 7).
1. These reasons concern an interlocutory application brought by the plaintiff seeking orders to restrain the law practice which presently acts for the defendant in this defamation action, from continuing to so act. The background to the action is set out in my earlier reasons: Souraki Azad
Jose [2023] WASC 160.[[1
(1999) 21 WAR 309
(2007) 34 WAR 379
(2005) 64 NSWLR 561
(1993) 42 FCR 307
(1959) 101 CLR 298