The Law Society of New South Wales v Nguyen [2014] NSWSC 211

Supreme Court New South Wales

Medium Neutral Citation: The Law Society of New South Wales v Nguyen [2014] NSWSC 211 Hearing dates: 11 March 2014 Decision date: 11 March 2014 Jurisdiction: Common Law Before: Schmidt J Decision: Orders 1 to 9 made in terms sought in the summons. Catchwords: LEGAL PRACTITIONERS - solicitor - application by plaintiff for appointment of receiver - receiver appointed - orders made by consent Legislation Cited: Legal Profession Act 2004 Category: Principal judgment Parties: The Law Society of New South Wales ACN 000 000 699 (Plaintiff) Thani Le Huu Nguyen [being the former principal of Peaceful Lawyers) (Defendant) Representation: Solicitors: Ms C Groenewegen (Plaintiff) File Number(s): 2014/72970 Publication restriction: None

EX TEMPORE Judgment 1HER HONOUR: These proceedings were commenced by summons filed by the plaintiff, The Law Society of New South Wales on 10 March 2014. Thereby various orders were sought. Firstly an order pursuant to section 630 (2) of the Legal Profession Act 2004 appointing a receiver to the law practice known as Peaceful Lawyers of which the defendant, Mr Nguyen, was the former principal. Various consequential orders were sought, as well as a freezing order of Mr Nguyen's assets and orders as to costs. 2The application was supported by an affidavit of Anne-Marie Foord, the manager of the Professional Standards Department of the Law Society of New South Wales sworn on 7 March 2014. 3When the matter came on for hearing today, Mr Nguyen did not appear but tendered was email correspondence received by the Law Society from him, indicating that he wished to fully cooperate with the Law Society and that he had no objection to the orders which it sought being made. He asked that the Law Society appear on his behalf and inform the Court of his position. Accordingly, the matter proceeded on the basis that the Court was being asked to make the orders proposed in the summons by consent. 4Ms Foord's affidavit disclosed the circumstances in which the Council of the Law Society made various resolutions on 6 March 2014 dealing with the matter on an urgent basis, following a referral from the Legal Services Commissioner and an investigation into complaints made against Mr Nguyen as to the misappropriation of trust funds. 5Ms Foord deposed to the Council's resolutions which followed upon the outcome of investigations reported to the Council by way of various reports annexed to her affidavit. It is apparent from those documents, that the investigations uncovered defalcation of trust account moneys in relation to a number of clients. It appears that the solicitor has repaid outstanding moneys to clients, but the defalcations are undoubted, revealing a proper basis for the orders which the Law Society seeks, as Mr Nguyen himself has come to agree. 6It is not necessary to descend into the detail of the reports or Mr Nguyen's explanations for the serious difficulties which the investigation has uncovered. In the circumstances, a proper basis has been established on the evidence for the making of the orders sought in the summons. 7Accordingly, by consent, I make orders 1 to 9 in terms sought in the summons.