Donaghy v Council of the Law Society of NSW (No 2)

The appeal before the Supreme Court of New South Wales concerned a solicitor, Mr Donaghy, who had failed to pay counsel's fees. The Law Society of New South Wales had issued a reprimand under section 540 of the *Legal Practitioners Act 2004* (NSW). Mr Donaghy sought a review of this decision before the Civil and Administrative Tribunal, which had set aside the reprimand. The Law Society appealed this decision to the Supreme Court.

The central legal issues for the Court were whether the Law Society had correctly applied section 540 of the *Legal Practitioners Act 2004* (NSW) in issuing the reprimand, specifically whether there was a "reasonable likelihood that the practitioner would be found by the Tribunal to have engaged in unsatisfactory professional conduct". The Court also considered whether the reprimand was the preferable penalty, and whether Mr Donaghy was generally competent and diligent.

The Court allowed the appeal, finding that the Tribunal had erred in setting aside the reprimand. The Court reasoned that the Law Society had correctly applied section 540, as there was indeed a reasonable likelihood that Mr Donaghy would be found to have engaged in unsatisfactory professional conduct. The Court determined that the Tribunal should not have interfered with the Law Society's decision. Consequently, the Court set aside the Tribunal's orders and dismissed Mr Donaghy's application for review. The Court also made orders regarding the costs of the proceedings.