After Magistrate Lauritsen gave his ruling on the question of bias, Mr Slaveski complained about the presence of two armed Protective Services Officers ('PSOs') in the court room, saying, among other things, he felt threatened by them. He stated that if the PSOs remained, he would leave, and go straight to the Practice Court. He was warned that if he left, the case would proceed in his absence.
Mr Slaveski then made an application to amend his counterclaim to increase his damages claim to $124,000. Magistrate Lauritsen explained that the jurisdictional limit of the Magistrates' Court was $100,000, and that he would only give leave to amend the counterclaim if Mr Slaveski abandoned any claim to any amount above the jurisdictional limit. Mr Slaveski refused to do so, and complained that the learned magistrate was unfair, as he had previously allowed Rotstein to amend its counterclaim. He renewed his application that the learned magistrate disqualify himself on the grounds of bias. Magistrate Lauritsen refused the application, on the basis that he did not have power to give leave to amend the counterclaim to claim a sum in excess of the jurisdictional limit of the Court.
Mr Slaveski then asked that the matter be stood down while he went to the Supreme Court. He was informed the matter would proceed. Mr Slaveski indicated that he would appoint his wife to represent him in his absence. The learned magistrate then informed him that he would not allow his wife to take part in the proceeding. Mr Slaveski again complained about the presence of the PSOs, questioning 'why couldn't they wait outside?' He then accused the learned magistrate of corruption, and became generally agitated, before departing the court room.
After Mr Slaveski's departure, the case proceeded. Counsel for Rotstein called Mr Hamish Rotstein, a principal of the firm, to give evidence. Mr Rotstein's evidence, in summary, was as follows:
(a) Mr Slaveski was referred to his firm by the Law Institute referral service in August 2006, seeking assistance for the defence of the Commonwealth Bank proceeding;
(b) after meeting with Mr Slaveski and his wife, Mr Rotstein sent a letter of engagement and a fee estimate, which included all of the usual information required by the Legal Profession Act 2004;
(c) some time later, Mr Rotstein sent a letter with a revised estimate and some draft pleadings. The original estimate was exceeded because of the complexity of the factual issues in the case and the pleadings;
(d) Rotstein rendered a number of tax invoices: to Mr Slaveski and/or Sky Empire;
(e) over the following months there was a lot of correspondence and numerous discussions between Mr Rotstein and Mr Slaveski regarding the payment of Rotstein's outstanding fees, with various payment arrangements proffered and agreed. Mr Slaveski told him he had financial problems;
(f) on or about 16 November 2012, Mr Rotstein accepted a proposal by Mr Slaveski that he make a payment of $2,000 in respect of unpaid fees, with payments of $500 per week until the outstanding fees were paid in full. Mr Rotstein prepared a letter for documenting this agreement, which contained, among other things, an acknowledgement by Mr Slaveski of his indebtedness to Rotstein. Mr Slaveski signed this letter;
(g) during the course of the retainer, Rotstein carried out the following work in relation to the Commonwealth Bank proceeding: liaised with solicitors and counsel regarding pleading issues, took instructions upon and prepared for further and better particulars, made discovery and inspected the Bank's discovered documents, and prepared for and represented the defendants at a full day mediation at the end of February 2007;
(h) Mr Slaveski never complained about the quality of work carried out by Rotstein. In December 2006 he brought his family into the office with generous gifts for Mr Rotstein and his staff;
(j) he identified and confirmed the accuracy of the firm's tax invoices and trust account statements, and that the net amount owing to Rotstein was $71,082.30 ($82,097.30 less payments of $10,175.00);
(k) he confirmed that Mr Slaveski had taken no action to review the fees charged by Rotstein under the Legal Profession Act 2004; and
(l) he confirmed that the entity which was retained by Mr Slaveski now traded under another business name, that Sky Empire had been deregistered, and that, to the best of his knowledge, Mr Slaveski was not an undischarged bankrupt.
Mr Rotstein finished giving his evidence shortly before 1.00pm. At the conclusion of Mr Rotstein's evidence, Magistrate Lauritsen indicated that he was satisfied that Rotstein had made out its claim, but in the circumstances, he would wait until 2.00 pm to pronounce his orders (that he would allow the claim and strike out the counterclaim for want of prosecution). Counsel for Rotstein submitted that there was no need for further delay, but conceded that he needed more time to work out the applicable figures for interest and costs. There was some discussion between the learned magistrate and counsel for Rotstein regarding Rotstein's claim in respect of costs. His Honour indicated that he would not allow some items, and requested that counsel recalculate the sum to be awarded in respect of costs to take into account these reductions.
The Court reconvened at 2.03pm. Counsel for Rotstein provided further details of Rotstein's costs claim. He was interrupted by Ms Snezana Slaveska, who informed the Court that Mr Slaveski had been taken to hospital with chest pains, having been intimidated by the armed PSOs. She handed up a copy of a Notice of Appeal which had just been filed with the Court of Appeal of this Court, seeking to set aside the order made by Macaulay J on 22 July 2011. Magistrate Lauritsen raised with counsel the question of whether he ought defer delivering judgment in this proceeding until after the Court of Appeal had heard and determined the appeal from Macaulay J. Counsel for Rotstein expressed concern that the hearing and determination of this proceeding had already been deferred on a number of occasions. Ms Slaveska submitted that Mr Slaveski's human rights had been violated.
Magistrate Lauritsen left the bench for approximately 15 minutes to consider the matter of whether he should defer delivering his decision until after the hearing and determination of the appeal in this Court. When he returned to deliver his ruling, he recapitulated the rulings made by him earlier that day, and stated that, given he had heard the proceeding for some time that day, he would make his determination, and if the Court of Appeal allowed the appeal, his judgment would necessarily fall away in consequence. He made orders staying the judgment for sixty days instead of the usual 30 days, having regard to Mr Slaveski's professed ill-health.[8]