Gersten v The Law Society

Case [2003] NSWCA 39


CITATION: GERSTEN v THE LAW SOCIETY [2003] NSWCA 39
HEARING DATE(S): Written submissions
JUDGMENT DATE:
21 March 2003
JUDGMENT OF: Handley JA at 1; Stein JA at 1; Davies AJA at 1
DECISION: Written submissions. Orders for costs made
CASES CITED: Ex parte Lenehan (1948) 77 CLR 403, 425
Johns v Law Society (CA NSW u/r 6/6/91)
Ex parte Davis (1962) 63 SR (NSW) 54, (1963) 109 CLR 428
Ziems v The Prothonotary (1957) 97 CLR 279

PARTIES :

JOSEPH MORRIS GERSTEN v THE LAW SOCIETY OF NEW SOUTH WALES
FILE NUMBER(S): CA 41007/01
COUNSEL: Appellant - Paul Brereton SC
Respondent - John Griffiths SC/
Nicholas Beaumont
SOLICITORS: Appellant - Oliveri Attorneys
Respondent - Raymond John Collins
LOWER COURTJURISDICTION: Supreme Court - Common Law Division
LOWER COURT FILE NUMBER(S): CLD 10125/99
LOWER COURT
JUDICIAL OFFICER :
James J



                          41007/01
                          CLD 10125/99
                          HANDLEY JA
                          STEIN JA
                          DAVIES AJA

                          21 March 2003

JOSEPH MORRIS GERSTEN v THE LAW SOCIETY OF NEW SOUTH WALES

Judgment on Costs


(written submissions)

1 THE COURT: On 22 November 2002 this Court published its reasons for judgment and made orders, other than orders for costs, disposing of the appeal. During argument on the appeal the parties had joined in asking this Court to defer making orders as to costs until they had had an opportunity to consider our reasons and orders.

2 Following the publication of reasons for judgment directions were given for the filing of written submissions and the last of these was received on 6 February.

3 James J, who dismissed the appellant’s application under SCR Pt 65A r 3, ordered the appellant to pay the Law Society’s costs of the proceedings. Since the substantive decision at first instance has been set aside, and an order granting the appellant’s application has been substituted, this Court must now re-exercise the discretion of the primary Judge as to costs.

4 The proceedings at first instance took 19 days between February and July 2001 and the appellant’s application was strongly contested. The Law Society however appeared in the proceedings to safeguard the standards of the profession in the public interest and for the protection of the public. See paras 51-4 of this Court’s reasons of 22 November 2002. We have not been persuaded that the Law Society stepped outside this role. It follows that this was not adverse litigation in the ordinary sense.

5 Counsel for the Law Society submit that an application under SCR Pt 65A r 3 for an “otherwise order” lifting the automatic suspension under the rule is analogous to an application for re-admission by a former practitioner who has been struck off for misconduct. In such a case the Court will ordinarily order the applicant for re-admission to pay the costs of the Law Society or Bar Association. See Ex parte Lenehan (1948) 77 CLR 403, 425; Johns v Law Society (CA NSW u/r 6/6/91) and Ex parte Davis (1962) 63 SR (NSW) 54, not affected on this point by the…

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Gersten v The Law Society [2003] NSWCA 39
Case
[2003] NSWCA 39
Decision Date

CaseChat Overview and Summary

The appeal concerned a dispute between Mr. Gersten and The Law Society of New South Wales regarding the Law Society's decision to refuse Mr. Gersten's application for a fidelity fund certificate. Mr. Gersten sought to renew his practising certificate, which required him to obtain this fidelity fund certificate. The Law Society had refused the application on the grounds that Mr. Gersten had failed to comply with certain requirements of the *Legal Profession Act 1987* (NSW) and the *Legal Profession Regulation 1994* (NSW) concerning the lodgement of trust account statements. The matter came before the Court of Appeal of New South Wales.

The primary legal issue before the Court of Appeal was whether the Law Society had erred in law by refusing Mr. Gersten's application for a fidelity fund certificate. This involved determining whether Mr. Gersten had, in fact, failed to comply with the relevant legislative provisions regarding the lodgement of trust account statements, and if so, whether such non-compliance justified the refusal of the certificate. The Court also considered the scope of the Law Society's discretion in granting or refusing such certificates.

The Court of Appeal found that Mr. Gersten had indeed failed to comply with the statutory requirements for the lodgement of his trust account statements. The Court held that the Law Society was entitled to refuse the application on this basis, as compliance with these provisions was a prerequisite for the issuance of a fidelity fund certificate. The Court emphasised the importance of these reporting obligations for the protection of the public and the integrity of the legal profession. The Court of Appeal ordered that the appeal be dismissed and made orders regarding costs.

Orders

Orders of the court

Written submissions. Orders for costs made

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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