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[2020] WASC 237
Supreme Court of WA
2020-06-24
Hill J
Original judgment source is linked above.
The plaintiff's claim is for loss and damages suffered as a result of irreparable harm suffered as a direct consequence of the conduct of the Legal Practice Board and its Committees as established by the Legal Profession Act 2008 in that the Legal Practice Board and its Committees have acted in breach of its statutory duties, in abuse of its powers and have engaged in conduct that breached the professional and ethical standards of the public sector, the legal profession and contrary to the good administration of justice when the Legal Practice Board and its Committees dealt with those entities and persons associated to the plaintiff and on whom the plaintiff depended financially and personally.
Mr Khosa was admitted to practice law in Western Australia in 2000 and was later employed as a director of two legal practices. The applicant says that she was the consultant practice manager to the law practice named Angove Law, and was later employed as practice manager by the practice named Law on Newcastle.
Proceedings were commenced by the Legal Profession Complaints Committee (LPCC) against Mr Khosa in the State Administrative Tribunal. In those proceedings it was alleged that Mr Khosa, on or about 1 March 2013, engaged in professional misconduct pursuant to the Legal Profession Act 2008 (WA) s 403 and s 438. The allegations in those proceedings related to a personal undertaking made by Mr Khosa to a fellow legal practitioner in circumstances where, it was alleged, that Mr Khosa knowingly breached that undertaking.
The Tribunal found that on or about 1 March 2013, Mr Khosa engaged in professional misconduct pursuant to the Legal Profession Act, in that he released an executed withdrawal of caveat form to Silver Force Pty Ltd and/or Ms Stephanie Douglas (clients) for lodgment at Landgate in circumstances where:
(i) Mr Khosa undertook to Mr Gough and Minter Ellison that the executed withdrawal of caveat form would not be lodged at Landgate and further, that he would not (it being necessarily implicit) release the caveat withdrawal to the clients until such time as the issue of costs relating to the claim by Roderick Gordon Murchison (the first plaintiff) in District Court proceedings No. CIV 2122 of 2011 relating to a loan of $150,000 by the first plaintiff to the clients had been resolved;
(ii) The issue of costs relating to the first plaintiff's claim had not been resolved as of 1 March 2013, when Mr Khosa released the caveat withdrawal to his clients for the purpose of the caveat withdrawal being lodged with Landgate; and
(iii) Mr Khosa released the caveat withdrawal to the clients for lodgment at Landgate.
The Tribunal found that Mr Khosa released the caveat withdrawal to the clients for lodgment at Landgate in the knowledge that it was in breach of the undertaking referred to above.
On 23 September 2015 the State Administrative Tribunal found Mr Khosa guilty of professional misconduct and subsequently suspended Mr Khosa from legal practice for a period of six months. Both the finding of guilt and the penalty imposed were appealed to the Court of Appeal.
The plurality of the Court of Appeal dismissed the appeal against the primary finding of guilt made by the Tribunal. The plurality went on to find that the imposition of a six month period of suspension demonstrated an implied error on behalf of the Tribunal as the decision was unreasonable or plainly unjust. A substituted penalty of two months suspension was imposed. (citations omitted)
Legal principles Leave to file or issue the proposed proceedings
(1) If any writ, process, motion, application or commission, which is presented for filing, issue or sealing appears to the registrar to be an abuse of the process of the Court or a frivolous or vexatious proceeding, the registrar shall refuse to file or issue such writ, process, motion, application or commission without the leave of a judge or a master first had and obtained by the party seeking to file or issue it.
(2) In the case of a motion or an application ordinarily returnable before a master in chambers, an application for leave to file or issue such motion or application shall be made to a master in chambers.
(3) In all other cases, an application or commission shall be made to a judge in chambers.
(4) Applications for leave under subrules (2) and (3) shall be made ex parte and shall be supported by affidavit.
An action is frivolous when it is not worthy of serious consideration, is insupportable in law, discloses no cause of action or is groundless. So too a matter that is without substance or is fanciful is frivolous. The term is apt to describe proceedings in which the plaintiff's claim is so obviously untenable that it cannot possibly succeed or in which there is no serious question to be tried. An action is vexatious if it has no reasonable prospects of success. The term has also been said to be apt to describe an action which is a sham and which cannot possibly succeed. (citations omitted)
The nature and extent of the information necessary to meet the requirement that the endorsement contain a concise statement of the nature of the claim made in the relief or remedy required does not depend upon a rigid formula. Relevant information can be conveyed in different ways and adequacy is to be determined from the endorsement as a whole.
The Rules of the Supreme Court are designed to enhance the efficiency and economy of litigation and reduce the unnecessary expenditure of private and public resources. The production of a writ with a concise statement of the nature of the claim made, in the sense of disclosing the causes of action relied on, suffices to give notice of the plaintiff's claim and the cause for that claim.
Before a writ is issued it must be indorsed with a concise statement of the nature of the claim made, and of the relief or remedy required in the action.
A cause of action for damages for breach of statutory duty arises where a statute which imposes an obligation for the protection or benefit of a particular class of persons is, upon its proper construction, intended to provide a ground of civil liability when the breach of the obligation causes injury or damage of a kind against which the statute was designed to afford protection. The question is one of the construction of the statute, although as Dixon J pointed out in O'Connor v SP Bray Ltd, an examination of the statute "will rarely yield a necessary implication positively giving a civil remedy". One generalisation that can be made is that where the persons upon whom the statutory obligation is imposed are under an existing common law duty of care towards the persons whom the statute is intended to benefit or protect, the statutory prescription of a higher or more specific standard of care may, in the absence of any indication of a contrary intention, properly be construed as creating a private right.
(2) An action in tort does not lie against a protected person for anything that the protected person has done, in good faith, in the performance or purported performance of a function under this Act.
(d) in the purported discharge of his or her public duties; and
In my opinion, everyone who was appointed to discharge a public duty, and receives a compensation in whatever shape, whether from the crown or otherwise, is constituted a public officer.
I certify that the preceding paragraph(s) comprise the reasons for decision of the Supreme Court of Western Australia.
[1] Wentworth v Rogers (No 5) (1986) 6 NSWLR 536, 536 - 537; Re Rules of the Supreme Court 1971 (WA); Ex Parte Gates [2018] WASC 213 [3].
[2] Re Rules of the Supreme Court 1971 (WA); Ex Parte Ruba [2019] WASC 92.
[4] Affidavit of Sharin Kaur Ruba sworn 5 September 2020, [36].
[5] Re Rules of the Supreme Court 1971 (WA); Ex Parte Ruba [10] - [15]; See also Legal Profession Complaints Committee and Khosa [2015] WASAT 107.
[6] Affidavit of Sharin Kaur Ruba filed 6 September 2019 'SKR46'; Affidavit of Sharin Kaur Ruba filed 6 September 2019 [5a] - [5b].
[7] Affidavit of Sharin Kaur Ruba filed 6 September 2019 [6b].
[8] Affidavit of Sharin Kaur Ruba filed 6 September 2019 [6c].
[9] Affidavit of Sharin Kaur Ruba filed 6 September 2019 [6b] - [6c].
[10] Affidavit of Sharin Kaur Ruba filed 6 September 2019 [5a].
[11] Jones v Skyring [1992] HCA 39; (1992) 109 ALR 303, 312.
[12] Perpetual Trustees Victoria Ltd v Allen [2012] WASC 258 (S) [23].
[13] Ex parte Gates [20]; Perpetual Trustees Victoria Ltd v Allen [23].
[14] Batistatos v Roads and Traffic Authority of New South Wales [2006] HCA 27; (2006) 226 CLR 256 [9].
[15] Walton v Gardiner [1993] HCA 77; (1993) 177 CLR 378, 393; Re City of Stirling; Ex Parte Tallot [2012] WASC 33 [7].
[16] Perpetual Trustees Victoria Ltd v Allen [23].
[18] Hospitals Contribution Fund of Australia v Hunt [1938] ArgusLawRp 58; (1982) 44 ALR 365, 373 ‑ 374; Middleton v The State Western Australia (1992) 8 WAR 256, 264.
[19] ABB Service Pty Ltd v Hetherington [2001] WASCA 235 [11].
[20] Stone James v Pioneer Concrete (WA) Pty Ltd [1984] WASC 460; [1985] WAR 233, 239 (Burt CJ).
[21] Rayney v State of Western Australia [No 3] [2010] WASC 83 [36] (Martin CJ).
[22] Civil Procedure Western Australia (the Red Book) [6.1.1].
[24] Byrne v Australian Airlines Ltd [1995] HCA 24; (1995) 185 CLR 410, 424 (Brennan CJ, Dawson and Toohey JJ).
[28] Legal Profession Act 2008 (WA), s 555(2) and s 557(4).
[29] Legal Profession Act 2008 (WA), s 591(b), (c), (e) and (f).
[30] Northern Territory v Mengel [1995] HCA 65; (1995) 185 CLR 307, 370 (Deane J); Neilson v City of Swan [2006] WASCA 94; (2006) 147 LGERA 136 [54].
[32] Henley v Mayor of Lyme [1828] EngR 701; (1828) 5 Bing 91, 107 - 108.
[34] Northern Territory v Mengel, 347 (Mason CJ, Dawson, Toohey, Gaudron and McHugh JJ).
[35] Neilson v City of Swan [154] - [157] (Buss JA).
[36] Whitehorn v The Queen [1983] HCA 42; (1983) 152 CLR 657, 665 (Deane J); Neilson v City of Swan [63].
[37] Noye v Robbins [2007] WASC 98 [220]; cf Little v Law Institute of Victoria [No 3] [1990] VicRp 25; [1990] VR 257, 267.
[38] See for example, Affidavit of Sharin Kaur Ruba filed 6 September 2019, [55(y)(ix)], p 35; [55(oo)], p 39; and [55(pp)], p 40.
[39] Affidavit of Sharin Kaur Ruba filed 6 September 2019 [11a].
[40] Affidavit of Sharin Kaur Ruba filed 6 September 2019 [359].
(2006) 226 CLR 256
(1986) 6 NSWLR 536
(1992) 109 ALR 303
(1982) 44 ALR 365
(1995) 185 CLR 410
(2006) 147 LGERA 136
(1983) 152 CLR 657
(1993) 177 CLR 378
(1992) 8 WAR 256
(1995) 185 CLR 307