McVeigh v Linen House Pty Ltd

The case before the court was a dispute between McVeigh and Linen House Pty Ltd. McVeigh sought to restrain the legal practitioners, who were acting for Linen House, from appearing in the appeal. The practitioners had previously acted for McVeigh in relation to the same transaction and period in which they were now acting for Linen House. The court was required to determine whether it had the jurisdiction to restrain the practitioners from acting in the appeal, notwithstanding Linen House's passive attitude towards the appeal. The court held that the practitioners' conduct amounted to a breach of their duty of loyalty to McVeigh, and that the court did have the jurisdiction to restrain them from appearing in the appeal. The practitioners' previous representation of McVeigh in relation to the same transaction and period gave rise to a conflict of interest, and their failure to obtain McVeigh's informed consent to act for Linen House amounted to a breach of their duty of loyalty. The court held that the practitioners' conduct was such that it was necessary to restrain them from appearing in the appeal in order to protect the integrity of the legal profession and to maintain public confidence in the administration of justice. The court held that Linen House's passive attitude towards the appeal did not affect the court's jurisdiction in the matter. The court made an order restraining the practitioners from appearing in the appeal.