Clinging to the wreckage

HMAS Voyager survivors waiting for their money as former solicitor lodges appeals against revocation of his ticket and extension of receivership ... More disciplinary cases in the pipeline ... Receiver looking to claw back $7.15 million from overcharged fees ... Trial timetable 

Melbourne after the collision

THERE have been directions hearings concerning various appeals by and claims against David Forster, the Victorian solicitor who acted for many of the Voyager victims injured in the collision with HMAS Melbourne in 1964. 

On Wednesday (Sept. 12) Justice Ross Robson set out a timetable for Noel Batrouney v David Brian Forster. 

Batrouney, from Hall & Wilcox, is the receiver of Forster's legal practice, the splendidly evocative Hollows Lawyers. 

Philip Corbett, for the receiver, told the court there were claims under three heads against Forster:  

1. Doubling of disbursements to the tune of $1.4 million affecting 46 clients; 
2. Another $255,000 in the case of two clients where there were no fee agreements; 
3. Instances where the fee agreement specified scale fees, but clients were charged on a time basis. This involves $5.5 million and affects 32 clients. 

In total the receiver is looking to Forster to pay $7.15 million into trust so that a distribution can be made to former clients. 

The receiver claims that the Commonwealth paid to Hollows $23 million for Melbourne-Voyager claims. 

Corbett said that sample file costings indicate substantial differences between what was charged and what should have been charged by the solicitor. 

The receiver's optimistic estimation of the hearing time if five-seven days. 

Forster says it's going to take 50 days because he intends to call 42 former clients, plus six or seven expert witnesses, presumably accountants who have examined his books. 

The judge said witness statements will need to be prepared and held that pleadings were now closed. 

The trial date has been set for June 2 next year. 

Mediation is to be conducted by November 30; report back by the mediator by December 13, defendant's witness statements by March 29; and further directions on April 15, 2013. 

More delays and misery as victims hang out for their settlement money. 

Forster told the court that he estimates the receiver's fees to be around $1.6 million, another $1.5 million in Legal Services Board fees and an unknown amount for the Legal Services Commissioner. 

Forster is also dealing with three Court of Appeal matters and another seven disciplinary cases before VCAT. 

Meanwhile, he still has access to the disputed funds. 

*   *   *

Forster: battling on all frontsON September 7 there was a directions hearing before judicial registrar Pedley. 

Forster is appealing against Justice Iain Ross's VCAT decision upholding the LSB's revocation of his ticket. 

He is also appealing two decisions of Justice Karin Emerton to extend the receivership. 

Counsel for the LSB argued that the appeal against the VCAT orders should take priority as these were "the most pressing and the most serious". 

Forster can only appeal Ross' decision on questions of law. 

The LSB pointed out that among the reasons for the cancellation of Forster's ticket was his lack of candour. 

There was also the issue of the solicitor attempting to have a client "say something [to a court] that was untrue and of benefit to Mr Forster". 

The board was concerned that Forster could continue to practice until the outcome of the VCAT appeal. 

An expedited hearing before Justices Kyrou and Nettle has been set for November 20. 

The two other appeals relating to the extension of the receivership are listed for hearing on February 22 and 23, 2013. 

There are a further seven misconduct matters relating to Forster's handling of claims by former Melbourne-Voyager clients, listed for directions hearings at VCAT next Tuesday (Sept. 18). 

There are several other orders relating to the filing of submissions as a result of Forster failing to comply with previous orders. 

The picnic continues. 

See: Voyager victims fleeced by pirate