THE PROTHONOTARY OF THE SUPREME COURT OF NEW SOUTH WALES v CHAPMAN [1992] NSWCA 292
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THE PROTHONOTARY OF THE SUPREME COURT OF NEW SOUTH
WALES v CHAPMAN
SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL
PRIESTLEY, CLARKE and CRIPPS JJA
29-30 September 1992, 1 October 1992, 14 December 1992
[1992] NSWCA 292
The appellant sought declarations that the respondent was not of good fame and
character, was not a fit and proper person to remain on the roll of solicitors and was guilty
of professional misconduct. An order was sought to remove the respondent's name from
the roll of solicitors.
The grounds relied upon principally involve the conviction of the respondent of keeping
a brothel and being involved in its financial administration. Other grounds include the
respondent making false declarations in registering a business name; allowing clients to
use false names and operating in a fictitious name himself; failing to properly advise
clients and holding inadequate knowledge himself; operating a client account for the
purposes of another client in order to conceal certain facts from banks and government
departments; displaying a lack of candour before the Court and using clients' moneys to
repay a debt owed to himself. Held: The respondent's conduct was unsatisfactory and
required a reprimand. The respondent to pay the costs of the proceedings. Per Cripps JA:
If all that was established was that the respondent was the keeper of a brothel his Honour
would have dismissed the summons. The respondent had gone further in his misleading
application under the Business Names Act, his use of false names in opening and operating
a bank account and allowing one client to use another client's account.
Legal Profession Act 1987 s125, 135, s158, s164. Business Names Act
Wentworth v Bar Association of New South Wales (1992) 66 ALJR 360
Weaver v The Law Society of New South Wales (1979) 142 CLR 201
Priestley JA I agree with Cripps JA.
Clarke JA I agree with Cripps JA.
Cripps JA On 12 March 1992, the Prothonotary took proceedings in the Court
by summons for declarations that Mr Chapman, a solicitor, was not of good fame
and character, was not a fit and proper person to remain on the Roll of Solicitors
and was guilty of professional misconduct. An order was sought that his name be
removed from the Roll of Solicitors.
As originally framed, a declaration was sought that Mr Chapman had been
guilty of professional misconduct as a solicitor in that:
(a) he was in March 1990 convicted of keeping a brothel between 26
August 1985 and 26 January 1986;
(b) he did keep a brothel between 26 August 1985 and 26 January 1986; and
(c) he was actively involved in the financial administration of a brothel.
It also sought a declaration that he was not a fit and proper person to remain
on the Roll of Solicitors because of the reasons set out above and because he
opened and operated a bank account using fictitious names.
The summons was amended prior to the hearing and further amended during
the hearing. The Prothonotary seeks the same declarations and orders but has
significantly widened the particulars. He relies on the same particulars (a), (b)
and (c) to support a declaration that Mr Chapman was guilty of professional
2 UNREPORTED JUDGMENTS
misconduct as a solicitor but has added the following particulars in support of the
second declaration, viz:
(e) "[H]e did apply to register and use a business name making a false
statement as the identity of the proprietor of the business name.
(f) [H]e did send or caused to be sent letters of accounts by the firm of
solicitors of which he was a partner to a client using a name of the client
known by him to be false and to a person who was fictitious.
(g) [H]e did fail to advise clients of the consequences of permitting
premises owned by them to be used as a brothel.
(h) [H]e did, by operating the account of International Secretarial Services
on instructions of Messrs Rigby and Cropper, operate that account other
than for the benefit of International Secretarial Services and its business.
(i) [H]e did operate the account of International Secretarial Services on
instructions of Messrs Rigby and Cropper in order to conceal from the
bank and/or from the Real Estate Institute and/or from the Department
of Consumer Affairs the fact that Messrs Rigby and Cropper were
operating a business and an account.
Gj) [He did lack adequate knowledge of the Business Names Act, the
Disorderly Houses Act and the offence of being the keeper of a brothel.
(k) [H]e has demonstrated lack of candour with the District Court and/or the
Court of Appeal in respect of
i the receipt by him of moneys being the proceeds of the business
of the brothel
ii payment by him of accounts including those for advertising of
prostitution
iii the fact that the prostitutes were responsible for their own affairs.
(1) [H]e did take moneys from a client's account, in the nature of a trust
account, without instructions, to repay a debt owed to himself."
The proceedings are said to be taken pursuant to the provisions of s125 of the
Legal Profession Act 1987. That is not strictly correct. S125 provides that nothing
in the Legal Profession Act 1987 affects the inherent jurisdiction of the Court
with respect to the discipline of barristers and solicitors. The Court is invited to
exercise its inherent jurisdiction.
In March 1990, Mr Chapman was convicted of being the keeper of a brothel
between 26 August 1985 and 26 January 1986. Phelan DCJ ordered that he enter
into a bond to be of good behaviour for two years and, as a condition of the bond,
imposed a fine of $5,000.
As will be seen, I am not prepared to make any of the declarations sought and
I would not make the order that Mr Chapman's name be removed from the Roll
of Solicitors. However, I have concluded that Mr Chapman's conduct was, in
certain respects, relevantly unsatisfactory and, for that reason, he should be
reprimanded, the parties agreeing that such an order is within the power of the
Court.
Notwithstanding the course I propose to take I do not think it inappropriate to
express certain views concerning what, in my opinion, is the inherently
unsatisfactory nature of the present proceedings in the circumstances established
bearing in mind the function the Court is obliged to perform and the fact that.
legal mechanisms have been established under the Legal Profession Act 1987 to
deal with allegations of unsatisfactory conduct. The Court does not know
whether, following Mr Chapman's conviction in March 1990, his conduct was
investigated by The Law Society. It was open to it to do so. As can be seen from
URE PROTHONOTARY OF THE SUPREME COURT OF NEW SOUTH WALES 3
CHAPMAN (Cripps JA) (Cripps JA)
the summons as originally framed, the essential allegation against Mr Chapman
was his involvement in and conviction for the keeping of a brothel between
August 1985 and January 1986 and that in so doing he opened and operated a
bank account under a fictitious name. As the case unfolded, other allegations
were made against Mr Chapman. In particular, it was alleged that he practised a
deception by allowing the account opened for the brothel to be used by other
persons. It was alleged that he failed to give adequate advice and demonstrated
lack of candour during the criminal proceedings. It was further alleged that he
engaged in conduct that was tantamount to unlawfully withdrawing money from
a trust account. As each additional allegation was made, Mr Garnsey QC, on
behalf of Mr Chapman, protested. He did not, however, seek an adjournment. It
is not hard to understand why he took the course he did. One cannot ignore the
inconvenience and cost associated with an adjournment and one can sympathise
with the understandable desire of a person brought before a court to have the
proceedings, of the type presently before it, disposed of as quickly as possible.
The nature of the proceedings and the function being undertaken by the Court
obliged it to entertain the fresh allegations. There is, however, in my respectful
opinion, an inherent unfairness in requiring a litigant to deal with allegations on
the run where those allegations have potentially serious consequences. As will be
seen, I am of the opinion that had the complaint against Mr Chapman been
confined to allegations originally made, I would have dismissed the proceedings.
It would seem to me that on any view of the matter, the other features of Mr
Chapman's conduct would have been more appropriately dealt with under the
Legal Profession Act 1987.
There is another aspect of the matter which bears on the views I have
expressed although, because I have concluded that I would have dismissed the
proceedings as originally framed, it does not arise in the present case. It is now
more than two and a half years since Mr Chapman was convicted and more than
five and a half years since he was charged with the offence of being the keeper
of a brothel. It is more than six and a half years since he last had any connection
with the brothel. If Mr Chapman's activities as a brothel keeper had the
consequence that, in the public interest, he was not a fit and proper person to
remain on the Rolls, he should not have been practising during the last six and
a half years. If that activity alone had not, but when combined with his conviction
had, the same consequence he should not have been practising for the last two
and a half years. The Court does not know whether, following Mr Chapman's
conviction in March 1990, his conduct was investigated by The Law Society,
and, if it was, what was its attitude. Bearing in mind that the Court received
evidence from individual solicitors concerning Mr Chapman's conduct and
reputation, it would not, in my respectful opinion, have been inappropriate for it
to have had the views of The Law Society or of one of the bodies set up for the
purpose of regulating the conduct of practitioners.
It would seem to me that the preferable course would have been for the matter
to have been investigated by and dealt with under the Legal Profession Act 1987
in the first instance at least and that such a course ought ordinarily to be followed.
Under the Act, there is no limitation on who may make a complaint to an
appropriate council and, in any event, The Law Society Council and the Bar
Council can make a complaint to the Tribunal (s135). A complainant or a counsel
can appear at the hearing (s158) and the parties have an appeal to the Supreme
Court against the determination of the tribunal (s164). The above remarks are
directed to a case like the present. I wish to make it perfectly clear that they are
4 UNREPORTED JUDGMENTS
not intended to embrace the case where the protection of the public interest
mandates an immediate referral to the Court.
Mr Chapman had acted for a number of prostitutes since 1982. In about 1985,
he was approached by a prostitute, Gabriel Tilden, for advice as to how a group
of prostitutes could undertake their professional activities without harassment
from the police. He advised they could establish a "co-operative" or "collective"
and undertake activities in a commercially zoned area. He said premises were
available at Unit 12, 181 Clarence Street, Sydney. The owner of No 12 was Keula
Holdings Pty Ltd which, in turn, was owned by David Cropper and Simon Rigby,
also clients of Mr Chapman. Mr Chapman told Mr Cropper and Mr Rigby about
the use to which the prostitutes intended to put the premises. Mr Chapman
arranged for a lease for a term of six months from 2 November 1985 from Keula
Holdings Pty Ltd to two prostitutes, Sophie Michelle-Clare and Gabrielle Tilden.
The prostitutes signed their names as Helena Brown and Claudia Pope. Mr
Cropper and Mr Rigby were aware of the false names. In about May 1985 and
in the course of giving advice to the prostitutes, Mr Chapman agreed with them
that he would register a Business Name, "International Secretarial Services" and
that "Edward Potter" would be registered as the person carrying on the business
under the Business Name. It was agreed that Mr Chapman would be "Mr Potter'.
Mr Chapman established credit card accounts with Amex, Bankcard and Visa
and opened a bank account at the National Australia Bank at George and Hunter
Streets, Sydney under the name "International Secretarial Services". The
signatories on the bank account were Mr Chapman, Mr Potter, Ms Pope and Ms
Brown. Mr Chapman also arranged for weekly medical examinations for the
prostitutes. He lent Ms Tilden and Ms Michelle-Clare approximately $12,000 to
furnish the unit so it could be used for the purpose of prostitution. The prostitutes
agreed that they would each keep sixty per cent of individual takings and forty
per cent would be used to maintain and run the co-operative. Its expenses
included paying the rent, repayment of the loan and day-to-day running expenses.
The forty per cent was to be placed in a till or box on the premises used by the
prostitutes. Mr Chapman agreed to attend the premises on a regular basis, to
collect moneys and to pay various expenses associated with the running of the
property. The uncontradicted evidence is that he did this at the request of the
women. He attended the premises one or two times a week. He collected the
money, the credit card vouchers and what were described as "weekly reports".
The "weekly reports" have not been the subject of much discussion and, I
assume, nothing turns on their contents. Mr Chapman banked the money and paid
the bills.
Mr Chapman was a partner in a firm of solicitors known as Bodors. In about
June of 1985, he made application for the registration of a business name under
the Business Names Act. The Business Name was described in the application as
"International Secretarial Services". The address of the business was given as Sth
Floor, 24 Ash Street, Sydney and the nature of the business as "casual secretarial
services, stenographers". "Edward Potter" was named as the person registered as
carrying on a business under the Business Name and his address was given as 5th
Floor, 24 Ash Street, Sydney. The application form was signed "E Potter". The
application was stated to have been lodged by Messrs Bodors Solicitors, 24 Ash
Street, Sydney.
During the period the brothel functioned, Mr Chapman dealt honestly with
money he received. Although legal fees were rendered for services to "Potter"
and paid out of the account, International Secretarial Services, it has not been
URE PROTHONOTARY OF THE SUPREME COURT OF NEW SOUTH WALES &
CHAPMAN (Cripps JA) (Cripps JA)
claimed that Mr Chapman either dishonestly failed to account to the prostitutes
for moneys entrusted to him or made any excessive charges so as to raise the
suspicion that under the guise of charging legal fees, he was, in truth, sharing the
profits of the brothel. Mr Chapman said he fully disclosed all relevant matters to
the bank. That statement was not correct. At best the bank knew who to contact
with respect to the account but it did not know, I infer, that the names Helena
Brown and Claudia Pope were fictitious and that the name "Potter" was not only
fictitious but used by Mr Chapman. I accept Mr Chapman's evidence that if an
inquiry had been made for "Potter" at Bodor's office he, Mr Chapman, would
have responded.
Towards the end of January 1986, Keula Holdings Ltd defaulted under the
mortgage. The mortgagee went into possession and sold the unit. The brothel was
closed. At that time, there was approximately $980 in the bank account and the
prostitutes owed Mr Chapman approximately $10,000. The account was not a
trust account. Mr Chapman withdrew the $980 and kept it as part repayment of
the loan then outstanding. The bank account remained extant, but unused, for
about six weeks.
It is to be recalled that Mr Cropper and Mr Rigby were the owners of the shares
in a company Keula Holdings Pty Ltd. They ran a service referred to as "Property
and General Private Sales". Their activities were the subject of a complaint by the
Real Estate Institute to the Department of Consumer Affairs. The Commonwealth
Bank had closed their account. They were having trouble opening an account
elsewhere. Mr Chapman, on their behalf, took the matter up with the Department
of Consumer Affairs and was told that it was responsible for the banks denying
Mr Cropper and Mr Rigby access to bank accounts. Mr Chapman then offered Mr
Cropper and Mr Rigby the account International Secretarial Services with the
National Bank. Mr Chapman was asked:
"They could not open a fresh account with another bank?
A: That is correct.
Q: They came to you, is that correct?
A: I was defending them in the Real Estate Institute proceedings...
Q: They asked you if you could assist so far as banking was concerned?
A: Yes.
Q: That was to continue operating the same business, the subject of the
proceedings.
A: Yes.
Q: In order to assist them to continue operating that business you allowed them
to operate off the International Secretarial Services account?
A: That is correct."
Two signatures were required for cheques drawn on the International
Secretarial Services account when it was opened in 1985. It appears that later
only one signature was required although the account remained in the four names
referred to above. Mr Chapman banked money and drew cheques on the account.
During the period March to May 1986, approximately $50,000 passed through
the account. Mr Chapman said he signed the cheques. Mr Chapman's version has
not been challenged. The cheques have not been tendered and, accordingly, I
accept his evidence.
He was asked:
"Q: You did not inform the bank of the change of business operation of the
account?
6 UNREPORTED JUDGMENTS
A: No I did not, because if I had, they would not have allowed the business to
have been transacted.
Q: In adopting the course of not informing the bank of the change of business,
you were deliberately concealing from the bank a business was being conducted
on that account, the bank would not have allowed you to operate through its
offices?
A: That is correct.
Q: In continuing to sign the cheques in the name of Chapman and operating
that account, you were concealing from the bank deliberately the nature of the
business that was being operated.
A: The Cropper and Rigby business?
Q: The Cropper and Rigby business.
A: That is correct."
The Court was told that as a result of complaints made by people who had paid
for, but had not received, services from Messrs Cropper and Rigby, credits that
had been entered by the National Bank against Bankcard vouchers were debited
to the account and, presumably, repaid to the card holders. The result was that the
account, International Secretarial Services, became "overdrawn" to an amount in
excess of $40,000. International Secretarial Services had no overdraft facilities
and had not asked for any. On the evidence before the Court I conclude that the
account became overdrawn without the consent or knowledge of the owners, real
or fictitious, of the Business Name. The bank sued Mr Chapman and recovered,
by way of compromise, an amount of approximately $35,000. Why Mr Chapman
was obliged to pay this amount has not been made clear but it is probably not
stretching credulity too far to believe a significant tactical advantage enjoyed by
the bank in the negotiations was the deception practised on it by Mr Chapman.
In March 1987, that is approximately fourteen months after the brothel closed
down, Mr Chapman was summonsed to answer the charge that he had been the
keeper of a brothel between August 1985 and January 1986. As I have said, Mr
Chapman had acted for prostitutes since 1982. He said that as a result of his
dealings with them, he formed the opinion that they were being unjustifiably
harassed by the police. He was not challenged about his beliefs. Prior to receiving
the summons in 1987, he had reported to the Parliamentary Select Committee
what he claimed to be improper conduct by members of the police force. One of
them was the police officer who commenced the criminal proceedings against
him. Mr Chapman said he believed the proceedings were commenced in
retaliation for the evidence he gave to the Parliamentary Select Committee. Mr
Chapman's allegations were not investigated in these proceedings. Accordingly,
it would be not proper to make any observations unfavourable to the police
officer referred to in the absence of hearing his version of the events. However,
Mr Chapman's belief has not been challenged by the Prothonotary. We were told
by Mr Garnsey QC that Mr Chapman was the first person to be charged with the
offence of keeping a brothel in New South Wales this century. Mrs Bennett, on
behalf of the Prothonotary, said she had no reason to suppose that that was not
correct. I do not know whether Mr Garnsey's statement is, in fact, correct or
incorrect. It is, however, probably safe to assume that no one has been charged
with the offence of being the keeper of a brothel for many decades.
There were two trials. The first trial was aborted after the police officer
responsible for bringing the proceedings introduced evidence which Phelan DCJ
at the second trial and, one assumes the trial judge at the first trial, believed was
introduced unfairly and for the purpose of prejudicing Mr Chapman's defence.
URE PROTHONOTARY OF THE SUPREME COURT OF NEW SOUTH WALES ¥
CHAPMAN (Cripps JA) (Cripps JA)
The Crown case against Mr Chapman in both trials was that he was involved to
a much greater extent in the running of the brothel than he claimed. It is now
accepted that although his participation in the brothel was sufficient to permit the
jury to conclude that he was relevantly a keeper of a brothel, it was not as great
as that alleged by the Crown at the trial. He did not, for example, share in the
profits and he was not running the brothel on a day-to-day basis.
I mention the above matters because Mr Chapman faces a further allegation,
namely, that he endeavoured improperly to mislead the court on the occasion of
his second trial. It is not alleged, as I understand it, that the evidence given before
Phelan DCJ on sentence and the evidence given under oath in these proceedings
is not true. However, it is alleged that when making his statement from the dock,
Mr Chapman endeavoured to hide from the jury the circumstance that he banked
money and paid accounts. That is, it was submitted that he endeavoured to
present to the jury a version that he had no connection whatsoever with the
brothel other than activities associated with its establishment. Mrs Bennett, on
behalf of the Prothonotary, has referred to a part of the dock statement in which
Mr Chapman said:
"In relation to what happened at Broughton House I say I assisted these
women in setting up their business who were responsible for their own affairs. I
deny ever having taken any money from Broughton House. The girls banked
their 30 to 40 per cent left over into a bank account each week from which
various expenses had to be paid, rent, telephone, electricity, advertising. I had no
control and never exercised control over who came in or who went out of that
brothel. I never participated in the day-to-day organisation or administration such
as the setting up of rosters, the allocation of work, the hiring and firing. These
were not matters of concern to me. These were matters for the girls to be
concerned about. I did not arrange advertising. I would say I assisted these girls
to set up their own business because they were quite incapable of doing it
themselves. Many of them had been my clients previously. There had been some
discussion in relation to a bank account and a registered business name and I say
that I assisted these girls with those facilities.
The purpose of my assisting the girls was to create a buffer between the girls
and the police."
During the present proceedings, Mr Chapman was cross examined. He
endeavoured to make the point that what he was trying to convey was that his
involvement was not as great as that suggested by the Crown at the time of his
trial and that his role was to act as a buffer between his clients and the police.
Viewed against the circumstances referred to above and bearing in mind that we
cannot recapture the atmosphere of the trial, I am not prepared to hold that by
reason of his statement from the dock Mr Chapman's fitness has been adversely
affected. I do not see his statement as being anything more than a strong denial
of what was alleged against him.
It follows from the above findings that the Prothonotary has established
particulars (a), (b), (e) and (f) and (c) (to the extent referred to above, ie, that he
was actively involved in the financial administration of the brothel but not to the
extent alleged by the police). Mr Chapman did not fail to advise Messrs Rigby
and Cropper of the consequences of the use of their unit as a brothel ((g)). I do
not think he demonstrated lack of candour when making his statement from the
dock and, as I have said, I do not understand Mrs Bennett to allege that he did
not tell the truth under oath in this Court and before Phelan DCJ ((k)). He
withdrew money from the account, International Secretarial Services, to repay a
8 UNREPORTED JUDGMENTS
debt owing to himself but the account was not a trust account ((1)). I think it has
been established he lacked adequate knowledge of the provisions of and
obligations imposed under the Business Names Act and that I accept the
Prothonotary's assertion if for no other reason than it is admitted by Mr Chapman
that he did not know that what he was doing constituted a common law
misdemeanour. He operated the account of International Secretarial Services on
instructions from Messrs Rigby and Cropper and did so in order to conceal from
the bank who its real customers were ((h)) and ((i)).
It can be seen that there are two distinct allegations against Mr Chapman
although, to some extent, they overlap. The first is with respect to his
involvement with the brothel. The second is deceptive conduct with respect to the
operation of the bank account and the application under the Business Names Act.
The principles upon which the Court is required to act in applications such as
this have been established in a number of cases. In Wentworth v Bar Association
of New South Wales (1992) 66 ALJR 360 at 363, Dawson, Toohey and Gaudron
JJ said: "Disciplinary proceedings have been described as proceedings concerned
with the protection of the public (Clyne v NSW Bar Association (1960) 104 CLR
186 at 201-202, New South Wales Bar Association v Evatt (1968) 117 CLR 77
st 183-184, Weaver v The Law Society of New South Wales (1979) 142 CLR at
207, Walter v Council of Queensland Law Society (1988) 62 ALJR 153 at 157).
And it has been said that, because they have the protection of the public as one
of their primary objects, they cannot necessarily be determined on the same basis
as adversarial proceedings (Walter v Council of Queensland Law Society (1988)
62 ALJR at 157)."
The power of the Court to suspend, strike off or discipline is one which, of
necessity, attends a court system (see Weaver v The Law Society of New South
Wales (1979) 142 CLR 201 at 207). Accordingly the court may adopt whatever
proceedings are appropriate which, of course, necessarily makes provision for the
requirements of procedural fairness.
As I have said above, if all that was established against Mr Chapman was that
he was the keeper of the brothel in the circumstances referred to above and that
he had been convicted of that, I would have dismissed the summons. That is to
say, I accept his evidence that although he collected money and paid bills, he did
not run the brothel in the manner contended for by the Crown. Mr Le Mercier,
a solicitor, gave evidence and said that when he heard that Mr Chapman was
convicted of being "the keeper of a brothel" he said he thought it sounded
"terrible". However, when he became aware of all the circumstances, he
concluded that it was not so. I think there is much to be said for Mr Le Mercier's
initial and later, more considered, reaction. It is not unlawful for a solicitor to
give advice to prostitutes.
Further, in my opinion, it is not unlawful for solicitors to advise prostitutes
how they may form a corporate collective providing that that advice does not
extend so as to encourage one or more of them to become the keeper of a brothel.
So much, I think, was conceded by the way in which the case against Mr
Chapman was conducted. The Crown's case was that he did much more than give
advice to the prostitutes. The Crown's case was that he actively participated on
a day-to-day basis in the running of the brothel and, by inference at least, that he
participated in the profits earned. Although he was convicted by the jury, it does
not follow that the jury accepted the Crown's case in its entirety. It was open to
the jury to convict him of the offence of being the keeper of the brothel by reason
of the participation admitted by him in his evidence in this Court. Not only did
URE PROTHONOTARY OF THE SUPREME COURT OF NEW SOUTH WALES 9
CHAPMAN (Cripps JA) (Cripps JA)
he establish the brothel in the sense of organising the prostitutes on a collective
basis, he made arrangements for the women to have regular medical check ups,
he attended the premises from time to time to collect money and he banked
money and wrote cheques for the running expenses of the brothel. Had he done
no more than establish a business name (or a corporation), negotiated the lease,
arranged for certain medical services to be available in the future, I do not think
it could be said, as a matter of law, that he had committed the offence of being
the keeper of a brothel. He was convicted of the offence because he went further
than that but not as far as the Crown alleged. I do not think his conduct or his
conviction (excluding, for the moment, his deception) is such that by reason of
it he should be declared guilty of professional misconduct, and/or that he was not
of good fame or character.
However, the allegation against Mr Chapman was not limited to being the
keeper of a brothel. He made a misleading application under the Business Names
Act and he opened and operated a bank account under false names for use by the
prostitutes. He instigated and participated in a deception of the bank by allowing
Messrs Rigby and Cropper to use the International Secretarial Services account
for their own purposes. Whatever might have been Mr Chapman's explanation
for the establishment and use of the account under false names, that excuse was
not available to him after the brothel closed. Thereafter, there was no need for the
account to be maintained or operated. Nonetheless, he continued to use it to
permit two other people, Messrs Rigby and Cropper, to operate a bank account
knowing that the bank did not wish to have dealings with them. I do not think Mr
Chapman's behaviour can be dismissed upon the basis that had he been a little
more sophisticated he could have created a nominee company which, in those
days, could have hidden the identity of Messrs Rigby and Cropper. Apart from
anything else, if a nominee company had been established, there would have
been an account in the name of a recognised legal entity.
The solicitors who gave evidence on behalf of Mr Chapman made the point
one way or another, as Mr Le Mercier had done, that with respect to his
participation in the brothel, he had gone further than the law permitted but, they
thought, without moral culpability. However, almost without exception, the
lawyers called by Mr Chapman, although defensive of him, said that the making
of a false application under the Business Names Act, the establishment of a bank
account with a bank with three of the four signatures being fictitious, operating
a bank account in these circumstances under one of those fictitious names and
permitting people to use the bank account to deceive a bank which did not wish
to deal with them, was something none of them would have done. It is not
surprising, in my respectful opinion, why they all came to this conclusion. That
conduct is not the conduct expected of a solicitor. There may be circumstances
where the using of a false name is perfectly acceptable as, for example, writing
a letter to a newspaper under a pseudonym. It can be accepted also that a false
name might be given to an inquirer for the purpose of legitimately avoiding being
harassed. There could be many circumstances where the use of a false name
would not involve any degree of moral culpability. But that cannot be said, I
think, of Mr Chapman's conduct.
Mr Chapman said he honestly believed in 1985 that he was not breaking the
law in assisting prostitutes in the way he did. At first blush I was tempted to
disbelieve his statement. I have since revised my opinion. He did not participate
in the activities of the brothel as alleged by the Crown. What he did was to
overstep the dividing line between legal and illegal conduct. A submission was
10 UNREPORTED JUDGMENTS
made to the effect that because Mr Chapman persisted in labelling his conduct
with respect to the brothel as "unwise", that was a demonstration of his unfitness.
I do not think that this submission can be sustained. Mr Chapman's attitude must
be viewed against the background I have referred to earlier. Mr Chapman was
persuaded that prostitutes were being unfairly treated by the police. Whether his
perception was justified does not matter. His fault may have been that which
some people on his behalf thought to be a virtue, viz, that he tended to become
overcommitted to causes he believed in. With respect to people who may have
different views, I am not impressed by the argument that Mr Chapman's penchant
for zealotry in his clients' causes should be viewed in his favour as certain
character witnesses, particularly lay witnesses, seemed to assume although
doubtless it has relevance when assessing moral culpability. It would seem to me,
with respect to people who have other views, that lawyers serve the public better
by disinterested competence than by enthusiastic crusading.
The question is whether it is established that Mr Chapman is now not of good
fame and character and is not fit to remain on the Roll of Solicitors. As I have
said, he engaged in professional misconduct in 1985 and 1986. Since that time,
his conduct has been satisfactory. He has practised as a solicitor since 1977. In
1987 he ceased being a partner in Bodors. He has not worked as a self-employed
solicitor or as an employee with a firm of solicitors. He is presently employed by
a corporation that requires him to hold an unrestricted practising certificate. He
has had that employment since May 1991. Between 1987 and 1990 he was
employed by corporations as an "in house" solicitor. The function of the Court is
to protect members of the public. A judicial reprimand has the effect of
identifying standards the establishment and maintenance of which protects the
public. I do not consider it appropriate to make the declaration concerning Mr
Chapman's conduct in 1985 and 1986. A finding of misconduct has been made.
In the present case, I think it appropriate that Mr Chapman be reprimanded and
that he be ordered to pay the costs of these proceedings.
Solicitor reprimanded and ordered to pay the costs of the proceedings.
Counsel for the Appellant: A Bennett
Instructed by: State Crown Solicitors
Counsel for the Respondent: J Garnsey QC with J Davidson
Instructed by: Snelgrove and Partners