John Ljubomir Atanaskovic and the persons named in Schedule A trading as Atanaskovic Hartnell v Birketu Pty Ltd [2019] NSWSC 1006

Supreme Court New South Wales

Medium Neutral Citation: John Ljubomir Atanaskovic and the persons named in Schedule A trading as Atanaskovic Hartnell v Birketu Pty Ltd [2019] NSWSC 1006 Hearing dates: 20, 21, 27, 28, 29, 30, 31 May 2019, 3, 4, 5, 19, 20, 24 June 2019, 22 and 26 July 2019 Decision date: 09 August 2019 Jurisdiction: Common Law Before: Hammerschlag J Decision: Judgment for the plaintiffs for $928,982.00.

The Court reserves for further consideration and submissions by the parties whether it should invoke its supervisory jurisdiction in relation to the whole or part of the balance of the legal fees charged for by the plaintiffs. Catchwords: LEGAL PRACTITIONERS – solicitor and client – claim by solicitor for fees – whether fees claimed are unfair and reasonable or excessive – where client retains solicitor to do work concerning a fraud perpetrated by an employee of the solicitor on the client – where solicitor gives an oral undertaking not to charge for this work – where no consideration given for the undertaking; PROCEDURE – Supreme Court supervisory jurisdiction and generally – whether the court should in its supervisory jurisdiction give effect to the undertaking – where part of the fees charged for may be for work done by the solicitors which transpires to be to their own benefit in adverse proceedings against the client; TORT – fraud – vicarious liability – solicitor in employ of law firm commits fraud on a client of the firm – whether conduct in course and scope of employment; AGENCY – ostensible authority – whether client clothed solicitor with ostensible authority – whether conduct of solicitor was in course and scope of his employment with law firm Legislation Cited: Legal Profession Uniform Law (NSW) Cases Cited: Athanasiou v Ward Keller (6) Pty Ltd (1998) 8 NTLR 23 Armagas Ltd v Mundogas S.A. [1986] AC 717 Baalman (JS & JH) v Dare Reed (1984) 52 ACTR 3 Briginshaw v Briginshaw (1938) 60 CLR 336 Chan v Zacharia (1984) 154 CLR 178 Clarey v Permanent Trustee Co Limited [2005] VSCA 128 Crabtree-Vickers Pty Ltd v Australian Direct Mail Advertising & Addressing Company Pty Ltd (1975) 133 CLR 72 Credit Lyonnaise Bank Nederland v Export Credit Guarantee Department [1996] 1 Lloyd's Reports 200 Deatons Pty Ltd v Flew (1949) 79 CLR 370 Equiticorp Finance Ltd (in liq) v Bank of New Zealand (1993) 32 NSWLR 50 Ffrench v Sestili (2007) 98 SASR 28 Freeman & Lockyer v Buckhurst Park Properties (Mangal) Ltd [1964] 2 QB 480 Helton v Allen (1940) 63 CLR 691 Junker v Hepburn [2010] NSWSC 88 Kirpatrick v Kotis (2004) 62 NSWLR 567 Law Society of New South Wales v Foreman (1994) 34 NSWLR 408 Lloyd v Grace, Smith & Co [1912] AC 716 Magripilis v Baird [1926] St R Qd 89 McNamara Business and Property Law v Kasmeridis (2007) 97 SASR 129 Moss v Moss (No 2) (1900) 21 LR (NSW) Eq 253 Northside Developments Pty Ltd v Registrar-General (1990) 170 CLR 147 Pacific Carriers Ltd v BNP Paribas (2004) 218 CLR 451 Prince Alfred College Incorporated v ADC (2016) 258 CLR 134 Rejfek v McElroy (1965) 112 CLR 517 Rose v Plenty [1976] 1 WLR 141 State of New South Wales v Lepore (2003) 212 CLR 511 United Dominions Corporation Limited v Brian Pty Ltd (1985) 157 CLR 1 Uxbridge Permanent Benefit Building Society v Pickard [1939] 2 KB 248 Watson v Foxman (1995) 49 NSWLR 315 Texts Cited: Bowstead and Reynolds on Agency, 17th ed (2001) Sweet & Maxwell Category: Principal judgment Parties: John Ljubomir Atanaskovic and the persons named in Schedule A trading as Atanaskovic Hartnell – Plaintiff Birketu Pty Ltd – First Defendant WIN Corporation Pty Ltd – Second Defendant Representation: Counsel: J Hutton – Plaintiff A Vincent – Defendants