Smits & Ors v Roach & Ors [2002] NSWSC 241

Reported Decision : (2002) 42 ACSR 148 (2002) 55 NSWLR 166

New South Wales Supreme Court

CITATION : Smits & Ors v Roach & Ors [2002] NSWSC 241 CURRENT JURISDICTION: Equity Division Commercial List FILE NUMBER(S) : SC 50099/99 11 - 14 March 2002 HEARING DATE(S) : 18 March 2002 20-21 March 2002 JUDGMENT DATE : 19 June 2002

Leonardus Gerardus Smits (1st Pltf) John Anthony Leslie (2nd Pltf) Plantoy Pty Limited (3rd Pltf) PARTIES : Walter Edward Roach (1st Def) Valerie Anne Roach (2nd Def) Winnote Pty Limited (In Liq) (6th Def) Sydtech Pty Limited (In Liq) (7th Def)

JUDGMENT OF : McClellan J

COUNSEL : G Lindsay SC/W Haffenden (Pltfs) J Sheahan SC/E Finnane (Defs) SOLICITORS : Smits Leslie, Solicitors (Pltfs) McCabe Terrill Lawyers (Defs) CATCHWORDS : COMMERCIAL - maintenance and champerty - retainer agreement between solicitors and clients provided for payment of a percentage of any damages recovered in a litigation matter - negotiation between solicitors, clients and litigation funder - further agreement between solicitors and liquidator securing the time costs of the solicitors - application of the Legal Profession Act 1993 and Maintenance and Champerty Abolition Act 1993 - discussion of the common law of champerty - whether agreements were contrary to public policy - whether recovery on quantum meruit is permissible - whether the common law position in regards to enforceability of champertous agreements has been changed - whether commencement of multiple proceedings amounted to an abuse of process. Legal Profession Act 1987 LEGISLATION CITED : Trade Practices Act Fair Trading Act Maintenance and Champerty Abolition Act 1993 Denist v Freethy (1890) 24 QB 519 Wild v Simpson (1919) 2 KB 544 Re Trepca Mines Ltd (No 2) [1963] 1 Ch 199 DJE Constructions Pty Ltd v Maddocks (1982) 1 NSWLR 5 AG Australia Holdings Limited v Burton & Anor [2002] NSWSC 170 Pavey & Matthews Pty Ltd v Paul (1987) 162 CLR 221 Clyne v NSW Bar Association (1960) 104 CLR 186 Hogarth & Ors v Gye & Anor [2002] NSWSC 32 Thai Trading Co v Taylor [1998] QB 781 Roux v Australian Broadcasting Commission (1992) 2 VR 577 Magic Menu Systems Pty Ltd v AFA Facilitation Pty Ltd (1997) 72 FCR 261 Montague Mining Pty Limited v Gore & Ors (t/as Clayton Utz) [2001] FCA 791 Gore v Justice Corporation Pty Ltd [2002] FCAFC 83; [2002] FCA 354 Wallersteiner v Moir (No 2) [1975] 1 QB 373 Awwad v Geraghty & Co [2000] 3 WLR 1041 Re William Felton & Co Pty Ltd (1998) 145 FLR 211 New South Wales Bar Association v Cummins (2001) 52 NSWLR 279 CASES CITED : New South Wales Bar Association v Somosi (2001) 48 ATR 562 Murphy v The Bar Association of New South Wales (2001) 49 ATR 48 Rondel v Worsley [1969] 1 AC Giannerelli v Wraith (1988) 165 CLR 543 Mallesons Stephen Jaques v KPMG Peat Marwick (1990) 4 WAR 357 Re a Firm of Solicitors [1992] 1 All ER 353 Thompson v Australian Capital Television Pty Ltd (1994) 54 FCR 513 Corporate Affairs Commission of NSW v Yuill (1991) 172 CLR 319 Hoking v The Western Australian Bank (1909) 9 CLR 738 Balog & Strait v ICAC (1990) 169 CLR 625 BIL (NZ Holdings) Ltd v ERA House Ltd (1991) 23 NSWLR 280 Brambles Holdings Ltd v Bathurst City Council (20000-2001) 53 NSWLR 153 Kearley v Thompson (1890) 24 QBD 742 Port of Melbourne Authority v Anshun Pty Ltd [1981] 147 CLR 589 VACC Insurance Ltd v BP Australia Ltd (1999) 47 NSWLR 716 McGowan v Commissioner of Stamp Duty (2001) 47 ATR 357 Spautz v Gibbs (1990) 21 NSWLR 230 Williams & Ors v Spautz (1991-92) 174 CLR 509 Dowling v Colonial Mutual Life Assurance Society Ltd (1915) 20 CLR 509 DECISION : See para 328