Atanaskovic Hartnell v Birketu Pty Ltd [2021] NSWCA 201

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Atanaskovic Hartnell v Birketu Pty Ltd [2021] NSWCA 201 Hearing dates: 29 March 2021 Date of orders: 3 September 2021 Decision date: 03 September 2021 Before: Basten JA at [1]; Gleeson JA at [2]; McCallum JA at [149] Decision: (1) Appeal dismissed. (2) Appellants to pay the respondents' costs. Catchwords: LEGAL PRACTITIONERS – solicitors – Court's supervisory jurisdiction – recovery of fees – retainer to investigate dispute between client and third party arising from frauds committed by solicitors' employee –actual conflict between solicitors' personal interests and fiduciary duty to client – whether solicitors obtained fully informed consent to act – whether nature of conflict precluded reliance on consent LEGAL PRACTITIONERS – solicitors – Court's supervisory jurisdiction – undertaking not to charge fees for work done – whether undertaking given in a professional capacity – whether reliance, loss or consideration required to enforce undertaking – whether Court should prevent solicitors reneging on undertaking Legislation Cited: Civil Procedure Act 2005 (NSW), s 99 Interpretation Act 1987 (NSW), s 34 Legal Profession Uniform Law (NSW), ss 264, 423(2)(c), 427, 428 Legal Profession Uniform Law Australian Solicitors' Conduct Rules 2015 (NSW), Pt 1 r 3.1, Pt 2 rr 2, 12 Uniform Civil Procedure Rules 2005 (NSW), r 20.14 Cases Cited: Ancient Order of Foresters in Victoria Friendly Society Ltd v Lifeplan Australia Friendly Society Ltd (2018) 265 CLR 1; [2018] HCA 43 Blackmagic Design Pty Ltd v Overliese (2011) 191 FCR 1; [2011] FCAFC 24 Boensch v Pascoe [2019] HCA 49; (2019) 94 ALJR 112 Chan v Zacharia (1984) 154 CLR 178; [1984] HCA 36 Coll v Floreat Merchant Banking Ltd [2014] EWHC 1741 Commonwealth Bank of Australia v Smith (1991) 42 FCR 390 Council of the New South Wales Bar Association v Siggins [2021] NSWCA 40 Farah Constructions Pty Ltd v Say-Dee Pty Ltd (2007) 230 CLR 89; [2007] HCA 22 Geoffrey Silver & Drake (A firm) v Baines [1971] 1 QB 396 Hasler v Singtel Optus Pty Ltd (2014) 87 NSWLR 609; [2014] NSWCA 266 Hastingwood Property Ltd v Saunders Bearman Anselm (A firm) [1991] Ch 114 In re A Solicitor [1966] 1 WLR 1604 John Fox v Bannister, King & Rigbeys [1988] QB 925 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41; [1984] HCA 64 Kuru v State of New South Wales (2008) 236 CLR 1; [2008] HCA 26 Law Society of New South Wales v Harvey [1976] 2 NSWLR 154 Maguire v Makaronis (1997) 188 CLR 449; [1997] HCA 23 Marcolongo v Mattiussi [2000] NSWSC 834 National Mutual Holdings Pty Ltd v The Sentry Corporation (1989) 22 FCR 209 New South Wales Crime Commission v Fleming (1991) 24 NSWLR 116 Phelan v Middle States Oil Corporation (1955) 220 F (2d) 593 Prothonotary of the Supreme Court of New South Wales v Thomson [2018] NSWCA 230 Rahme v Benjamin & Khoury Pty Ltd (2019) 100 NSWLR 550; [2019] NSWCA 211 Re A Solicitor; Ex parte Hales [1907] 2 KB 539 Spector v Ageda [1973] Ch D 30 United Bank of Kuwait Ltd v Hammoud [1988] 1 WLR 1051 United Mining and Finance Corporation Ltd v Becher [1910] 2 KB 296 Wade v Licardy (1993) 33 NSWLR 1 Warman International Ltd v Dwyer (1995) 182 CLR 544; [1995] HCA 18 Texts Cited: GE Dal Pont, Lawyers' Professional Responsibility (7th ed, 2021, Thomson Reuters (Professional) Australia Limited) GE Dal Pont, Riley Solicitors Manual (2005, LexisNexis Butterworths) Category: Principal judgment Parties: John Ljubomir Atanaskovic, Anthony Geoffrey Hartnell, Jeremy Martin Kriewaldt, Michael John Sophocles, Jon-Thomas Skene, Lawson Andrew Jepps t/as Atanaskovic Hartnell (Appellants) Birketu Pty Ltd (First respondent) WIN Corporation Pty Ltd (Second respondent) Representation: Counsel: J Moore SC / J Hutton (Appellants) B Walker SC / A Vincent (Respondents)