Mystery person offering settlements for Stephen Firth's clients to withdraw their overcharging cases against Keddies ... Injunction sought ... Former Keddies' partners give undertakings pending further hearing
Sydney solicitor Stephen Firth is seeking an injunction to prevent the partners of disgraced law shop Keddies approaching his clients and getting them to withdraw District Court cases claiming they were overcharged.
Firth is acting for about 100 former Keddies' clients who claim they were overcharged. In some instances fraud is alleged against the Keddies' partners.
About 20 cases for breach of contract due to overcharging have settled and another 35 are listed for hearing in the Dizzo. A further 40 are waiting for a hearing date.
Bob Stitt QC, for Firth, told Justice Michael Adams on Tuesday (Nov. 22) in the NSW Supremes that approaching Firth's clients and getting them to withdraw their cases against Russell Keddie, Scott Roulstone and Tony Barakat amounted to the tort of interfering with contractual relations.
"It's so offensive, that it should be brought to heel," he told Adams.
According to Firth's affidavit, sworn on November 18, none of his clients approached by Barakat and others, and urged to sign a deed of settlement and release, were advised to seek legal advice.
Robert Dubler SC, for the Keddies' boys, claimed that in some instances it was not known who was making these offers to their former clients to withdraw the overcharging cases.
Stitt was amazed that an "unknown, charitable, white knight, was going around the suburbs with piles of cash and deeds of release".
The Keddies people, through their lawyers Verekers, had previously given undertakings that they would not approach Firth's clients.
Adams said that if the person who had secured these settlements without first approaching Firth was identified, and found to have a connection with Keddies, that would be a breach of the undertaking and would have "serious consequences".
The defendants said on Tuesday that they would give the court an undertaking not to approach Firth's clients pending a further hearing.
The defendants have to provide additional affidavit material by Monday afternoon (Nov. 28). The hearing is scheduled for sometime in the week commencing December 12.
It is expected that the defendants will have to be available for cross-examination.
On Thursday (Nov. 17) two of Firth's clients, Basil and Maria Goritsas, were introduced to a Mr Hasson of LHD Lawyers, who gave them deeds of release and promised them $30,000 each. The introduction was arranged by the mysterious white knight, known simply as "Michael".
The Goritsases were contract cleaners at Selborne and Wentworth Chambers and had been injured in a motor car accident, as a result of which they fell into the clutches of Keddies.
Actually, their overcharging claims were worth, with interest, $53,000 and $58,000 respectively.
The Goritsases showed the deed to Firth, which stymied the backroom deal. Keddies served an officer of compromise for, you guseed it, $53,300 and $58,300 and agreed to pay indemnity costs from November last year following the rejection of a lesser offer.
Firth claims that at no time did Verekers or the Keddies' partners themselves seek his permission to approach these clients to get the overcharging proceedings dropped.
Firth said in his affidavit that this was a breach of the undertaking given by Verekers on behalf of Keddies:
"It is because of this demonstrable breach that I have been compelled to move the court for the orders sought in the summons."
At least five other clients of Firth's have been approached before their overcharging cases against Keddie, Roulstone and Barakat were listed for hearing.
In each instance the clients were persuaded to settle on the basis of a verdict for the defendants with no order for costs.
Firth says:
"In no case did they arrange independent legal advice … Barakat purported to go onto the court record to act for both the defendant and the plaintiff."
In most of these cases English was not the first language of the plaintiffs, one spoke very little English and one none at all.
When Firth pointed out the obvious conflict, the defendants said that Slater & Gordon was acting for Firth's plaintiffs.
Barakat is now the practice group leader at Slater & Gordon for motor vehicle and general compensation claims in the Ashfield-Parramatta area.
Roulstone still trades under the Keddies name, although the firm was acquired by S & G in January this year.
When Firth objected to the obvious farce of S & G purporting to provide independent advice, Barakat and Roulstone fished around for another lawyer to act for the overcharged plaintiffs.
They came up with Anthony Bazouni, from an outfit called Prominent Lawyers in Market Street, Sydney. Bozouni is a former employee of Keddies.
Roulstone is a former vice-president of the Law Society of NSW and Barakat is an examiner for the Law Soc's specialist accreditation scheme. Russell Keddie is still on the books at Keddies.
Russ has admitted that he was responsible for overcharging in the Meng case, which is currently before the ADT and due for a hearing next April.
Misconduct complaints against Barakat and Roulstone have been withdrawn by the Legal Services Commissioner, Steve Mark, on the ground that Keddie himself has taken responsibility for the complaint.
Affidavit 1 of Stephen Firth (Link removed. No publication order by order of Justice Adams.)
Affidavit 2 of Stephen Firth (Link removed. No publication order by order of Justice Adams.)