Council of the Law Society of New South Wales v Bouzanis [2017] NSWCA 330

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Council of the Law Society of New South Wales v Bouzanis [2017] NSWCA 330 Hearing dates: 23 November 2017 Decision date: 15 December 2017 Before: McColl JA at [1]; Basten JA at [23]; Simpson JA at [55] Decision: (1) Allow the appeal and set aside the order made by the Tribunal on 26 May 2017 dismissing the application before it.

(2) Order that there be a new hearing in the Tribunal of the application by the Council of the Law Society.

(3) Order that the respondent pay the appellant's costs of the appeal.

(4) Order that the respondent have a certificate under the Suitors' Fund Act 1951 (NSW) with respect to the costs of the appeal. Catchwords: OCCUPATIONS – legal practitioners – application to remove solicitor from roll – whether disbursements or "transit money" payable to third parties are "costs due to the practice" – whether such money therefore not trust money under statute – solicitor deposited payment from clients into office account rather than trust account – solicitor spent money for his own purposes, with result that barrister and expert witness were not paid – whether solicitor misappropriated trust moneys

WORDS AND PHRASES – "legal costs" – "trust money" – Legal Profession Act 2004 (NSW), ss 4, 246(4) Legislation Cited: Interpretation Act 1987 (NSW), ss 5, 33, 34, 35 Law Practitioners Act 1892 (NZ), s 2 Law Practitioners Act 1908 (NZ), s 47 Law Practitioners Act 1931 (NZ), s 46 Legal Practitioners Act 1898 (NSW), s 41; Pt VII Legal Practitioners Act 1970 (ACT), s 87 Legal Profession Act 1987 (NSW), s 61 Legal Profession Act 2004 (NSW), ss 4, 37, 150, 242, 243, 246, 253, 254, 255, 329, 337, 338, 527, 537, 540; Ch 3 Pt 3.1, Div 2' Pt 4.2; Pt 7.3 Legal Profession Uniform Law Application Act 2014 (NSW), s 167; Ch 4 Cases Cited: Betella v O'Leary [2001] WASCA 266 BHP Billiton Iron Ore Pty Ltd v National Competition Council (2008) 236 CLR 145; [2008] HCA 45 CIC Insurance Ltd v Bankstown Football Club Ltd (1997) 187 CLR 384; [1997] HCA 2 Clyne v Deputy Commissioner of Taxation (1981) 150 CLR 1; [1981] HCA 40 Commissioner for Railways (NSW) v Agalianos (1955) 92 CLR 390; [1955] HCA 27 Cooper Brookes (Wollongong) Pty Ltd v Federal Commissioner of Taxation (1981) 147 CLR 297; [1981] HCA 26 Council of the Law Society of New South Wales v Andreone (No 1) [2014] NSWCATOD 49 Countess of Bective v Federal Commissioner of Taxation (1932) 47 CLR 417; [1932] HCA 22 Griffin v The Council of the Law Society of New South Wales [2016] NSWCA 364 In re a Practitioner of the Supreme Court [1941] SASR 48; [1941] SAStRp 11 Kelly v The Queen (2004) 218 CLR 216; [2004] HCA 12 Knightsbridge Estates Trust Ltd v Byrne [1940] AC 613 Law Society of New South Wales v Davidson [2007] NSWADT 264 Legal Services Board v Gillespie-Jones (2013) 249 CLR 493; [2013] HCA 35 Legal Services Commissioner v Russo [2016] NSWCATOD 42 Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355; [1998] HCA 28 Public Transport Commission (NSW) v J Murray-More (NSW) Pty Ltd (1975) 132 CLR 336; [1975] HCA 28 Qantas Airways Ltd v Chief Commissioner of State Revenue [2008] NSWSC 1049 Re John Frederick Lord v The Australian Elizabethan Theatre Trust (1991) 30 FCR 491; [1991] FCA 438 Re Robb (1996) 134 FLR 294 Russo v Legal Services Commissioner [2016] NSWCA 306 Stephens v The Queen (1978) 139 CLR 315; [1978] HCA 35 SZTAL v Minister for Immigration and Border Protection; SZTGM v Minister for Immigration and Border Protection (2017) 91 ALJR 936; [2017] HCA 34 Texts Cited: Heydon and Leeming, Jacobs' Law of Trusts in Australia, (8th ed, LexisNexis Butterworths) at 2-02 Category: Principal judgment Parties: Council of the Law Society of New South Wales (Appellant) Peter Bouzanis (Respondent Representation: Counsel: Ms C A Webster SC/Mr G Johnson (Appellant) Mr T Lynch SC (Respondent)