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[2014] VCAT 24
Victorian Civil and Administrative Tribunal
2014-01-14
Original judgment source is linked above.
Legal Profession Act 2004 ─ professional misconduct ─ solicitor failing to pass on monies received on trust on behalf of his clients ─ failing to take action required in the interests of his client ─ falsely claiming an entitlement to practise ─ tax offences ─ making false statutory declarations ─ failing to respond to statutory requests for information from the Legal Services Commissioner - penalty - recommendation to the Supreme Court that practitioner be removed from the local roll.
Legal Services Commissioner v Telehus (Legal Practice) [2014] VCAT 24
I was charged with failing to lodge income tax returns 2005/6/7. At the time I pleaded guilty, I had lodged returns - all returns showed an operating loss. No financial gain was made. No dishonesty was involved in my failure to lodge i/t returns. My failure to lodge was a direct consequence of maintaining a full-time practice whilst being a full-time carer for my aged mother. [I was my mother's full time carer for 8 years] I should have sought assistance but failed to do so. I fully understand the need to ask for help. (My mother passed away 7/1/10)
7 In relation to applications to strike a practitioner off, Warren CJ relevantly said in Legal Services Board v McGrath[9]:
An exercise of the Court's discretion to remove a practitioner from the Roll is made by reference to a number of long standing principles.[2] ... Such a decision will only be made when the Court is satisfied at the time of the hearing[4] that the practitioner in question is shown 'not to be a fit and proper person to be a legal practitioner'[5] or is shown not to be a 'fit and proper person to be entrusted with the important duties and grave responsibilities which belong to a solicitor'[6] and will likely remain so for the indefinite future.[7] The person or entity bringing such an application bears the onus of satisfying the court of the requisite degree of indefinite unfitness on the balance of probabilities.[8] As was set out in Briginshaw v Briginshaw,[9] that standard is not a fixed or simple one, but depends upon the matters before the court. Whilst the onus of proof is a civil one, the Court approaches the making of such decisions with caution[10] and 'meticulous care',[11] and with a great appreciation for 'the possibly disastrous consequences of disbarment to the individual concerned'.[12]
...After a person has been so admitted, the courts implicitly hold him or her out to be a person who is fit to hold that office. When it is brought to the court's attention that the person's conduct or situation gives cause to challenge the continuation of that position, the courts must reconsider his or her suitability to practise. That principle was explained by Lopes LJ in Re Weare:[9]
To my mind the question which the Court in cases like this ought always to put to itself is this, is the Court, having regard to the circumstances brought before it, any longer justified in holding out the solicitor in question as a fit and proper person to be entrusted with the important duties and grave responsibilities which belong to a solicitor? That appears to me to be the question which the Court always has to answer when a matter of this kind comes before it.[10]
Such reconsideration is seen to be the court's positive responsibility. So, in Southern Law Society v Westbrook,[11] O'Connor J said:
The Supreme Court in admitting a solicitor to the roll incurs very great responsibility to the public. Having admitted him, it incurs an equally serious responsibility in keeping him on the roll if once the attention of the Court has been called to conduct on his part which shows that he is not a fit and proper person to remain there.[12]
[16] It will be obvious to everyone why the courts are concerned to ensure that only fit and proper persons are admitted to and continue in practice as officers of the court. Legal practitioners have heavy responsibilities and particular privileges which must be properly exercised in the interests of justice and of maintaining public confidence in the legal profession. The importance of this point was emphasised by Doyle CJ and Stanley J in Legal Practitioners Conduct Board v Clisby [13]
It is of the utmost importance that public confidence in the legal profession be maintained. Legal practitioners play an integral part in the administration of justice. The obligations which accompany a practitioner's position are commensurate with the responsibility involved. The duties of legal practitioners include a duty to uphold the law, a duty to the Court, a duty to clients and a more general duty to members of the public. The Court and the public demand high standards from practitioners. This is reflected in the legislative processes that regulate the admission of practitioners and govern their conduct.
[19] In Hughes & Vale Pty Ltd v New South Wales [No 2],[20] Dixon CJ, McTiernan and Webb JJ said the standard of being a 'fit and proper' person to practise involved three things: 'honesty, knowledge and ability'[21]. In McGrath, Warren CJ said the concept of 'fit and proper' required 'technical and moral aptitude sufficient to meet the demands of the role in question'.[22] Her Honour went on to adopt the analysis of Walters J in Sobey v Commercial and Private Agents Board.[23] Speaking in an analogous context, his Honour said the concept of 'fit and proper' required the person to be
possessed of a requisite knowledge of the duties and responsibilities devolving upon him as the holder of the particular licence ... but also ... of sufficient moral integrity and rectitude of character as to permit him to be safely accredited to the public, without further inquiry, as a person to be entrusted with the sort of work which the licence entails.[24]
[20] The conduct or circumstances which may establish that a person is no longer a fit and proper person to be on the roll of practitioners are not closed. Judgments of the High Court have repeatedly stressed the need to consider 'the whole position'[25]...
[74] The rule is an important one and should be applied, where applicable, in disciplinary proceedings. First, as Brennan J noted in Ryan, it allows for a sentence on one count to stand where a conviction for another count is quashed. Secondly, it is easier to assess whether a penalty is manifestly excessive or inadequate when each sentence is clearly pronounced on each count. Thirdly, by sentencing for separate offences, the court makes it clear to the public what the penalty for each offence is, thus assisting in the process of general deterrence. Finally, as in this case, adherence to this rule prevents conduct from one charge being used as an aggravating factor in assessing the penalty for another charge.
[75] However, this rule may not apply in all disciplinary proceedings. There are some cases[20], where the charged conduct is constituted by a course of behaviour as opposed to a set of separate events. In these circumstances where the facts of the case are so inextricably interwoven as to make it difficult to meet a clear standard of prescription, a global penalty may be applied. In this case, the Tribunal's failure to set out separate penalties for each charged conduct is an error and its discretion has thus miscarried. Further, the Tribunal's use of the conduct the subject of Charge 3 as an aggravating factor constituted double punishment and was also an error.
FACTORS RELEVANT TO DETERMINATION OF PENALTY IN THIS CASE
Failed to provide a full written explanation and failed to produce trust ledgers relating to a complaint by his client, Mr Mackay (in breach of s 4.4.11(1)(a) of the Act).
Ordered to produce the material by 16 November 2007
Failed to produce files in relation to two complaints by his client Mr Prestipino, and to provide a full written explanation (in breach of s 4.4.11(1)(a) of the Act).
Ordered to produce the information by 16 November 2007.
Failed to provide documents and information relating to a complaint by his client Mr Greg Stewart (in breach of s 4.4.11(1)(a) of the Act).
Ordered to produce the documents and information by 30 May 2008.
Failed to comply with the above two orders of VCAT dated 26 October 2007 to produce information (in breach of s 4.4.4(f) of the Act).
No practising certificate may be issued until 1 January 2009 (or 1 September 2008 if the orders of 26 October 2007 were complied with).
[1] Legal Services Commissioner v Telehus. (Legal Practice) [2013] VCAT 2185
[3] Hanabry v Legal Ombudsman [1998] VSCA 142.
[4] Quinn v Law Institute of Victoria Limited [2007] VSCA 122 at [30].
[5] Law Institute of Victoria v Brott [2008] VCAT 1998 per Ross J.
[9] [2010] VSC 266 at [9]. The case references footnoted in that passage are as follows:
[2] Ex parte Brounsall [1778] EngR 95; (1778) 2 Cowp 829; 98 ER 1385 ('Brounsall').
[4] A Solicitor v Council of the Law Society of New South Wales [2004] HCA 1; (2004) 216 CLR 253, 268 ('A Solicitor').
[6] Re Weare (1893) 2 QB 439, 448. See also Southern Law Society v Westbrook [1910] HCA 31; (1910) 10 CLR 609, 612.
[7] Stanoevski v The Council of the Law Society of New South Wales [2008] NSWCA 93, [54] ('Stanoevski').
[8] The Prothonotary of the Supreme Court of New South Wales v Sukkar [2007] NSWCA 341 (Unreported, Hodgson, Tobias and Basten JJA, 29 November 2007) [9]-[16].
[10] Legal Services Board v Bourozikas [2009] VSC 382, [15]. See also, Ziems v Prothonotary of the Supreme Court of New South Wales [1957] HCA 46; (1957) 97 CLR 279 ('Ziems'). 288, and A Solicitor, 268.
[14] [2012] VSC 632. The case references footnoted in that passage are as follows:
[11] [1910] HCA 31; (1910) 10 CLR 609 ('Westbrook').
[13] [2012] SASCFC 43 (1 May 2012) (Doyle CJ, Anderson and Stanley JJ).
[20] Here, the Court of Appal sated in a footnote: 'See Burgess [2013] VSCA 142, where Nettle and Neave JJA sentenced the appellant globally.'
[21] I gather this was modelled on the orders made in legal Services Commissioner v Rushford [2012] VCAT 780. For the sake of consistency, I record that I regard Mr Telehus' conduct overall as more serious than Mr Rushford's.
[22] [2008] VCAT 1998 at [48] - [51].
[23] Legal Services Commissioner v Moore [2010] VCAT 742 at [44].
[25] See New South Wales Bar Association v Cummins [2001] NSWCA 284; (2001) 52 NSWLR 279.
[26] [2008] VCAT 1998 at [50].
[27] Legal Services Board v McGrath [2010] VSC 266 at 10.
Legal Services Commissioner
Telehus
(2004) 216 CLR 253
(1910) 10 CLR 609
(1938) 60 CLR 336
(1957) 97 CLR 279
(1982) 149 CLR 1
(2001) 52 NSWLR 279