Broadley Rees Hogan Lawyers v Kallis

Broadley Rees Hogan Lawyers sought leave to appeal a decision of the tribunal in which a claim for outstanding legal fees was dismissed. The respondent, William Kallis, was named as an “Associate” in a client agreement which meant that he was personally liable for the fees if the client, KB Nut Holdings Pty Ltd, did not pay. Although the agreement was not signed, Mr Kallis gave instructions to Broadley Rees Hogan after receiving the agreement. The firm subsequently provided invoices and a costs disclosure notice to Mr Kallis. When the debt was not paid, Broadley Rees Hogan filed a minor debt application in the tribunal. The tribunal dismissed the claim, finding that Broadley Rees Hogan did not have a binding client agreement. The firm sought leave to appeal the decision, arguing that the tribunal erred in finding that there was no binding client agreement, that the decision was not justified in fact or law, and that the tribunal’s decision was outside its powers. The appeal tribunal assessed whether there was a reasonably arguable case of error in the primary decision and whether leave was necessary to correct a substantial injustice.

The appeal tribunal found that the tribunal erred in finding that Broadley Rees Hogan did not have a binding client agreement. The tribunal’s findings were not supported by the evidence. The covering letter and the client agreement set out three options for accepting the client agreement: signing and returning a copy, giving instructions after receiving the documents, or accepting the agreement orally. Mr Kallis gave instructions to Broadley Rees Hogan after receiving the agreement, which meant that he accepted the client agreement. The appeal tribunal found that the tribunal also erred in finding that the appeal tribunal would not usually disturb findings of fact on appeal if the evidence is capable of supporting the conclusions. The appeal tribunal must exercise its own discretion when considering whether the original decision maker was in error.

The appeal tribunal set aside the decision of 11 June 2013 and ordered that William Kallis pay Broadley Rees Hogan Lawyers $1,709.06 by 19 November 2013. Leave to appeal was granted, and the appeal was allowed.