Pearlbran v Win Mezz No. 19 Pty Ltd

The defendants, Win Mezz No. 19 Pty Ltd, sought an order to prevent a firm of solicitors, Duke Myrteza and Forbes Dowling Lawyers, from continuing to act for the plaintiffs in a matter involving a proposed land development. The defendants claimed that the solicitors had a conflict of interest due to their involvement in contracts associated with the development and their ability to act effectively for the plaintiffs. The dispute was heard in the Supreme Court of New South Wales.

The legal issues before the court were whether the solicitors had a conflict of interest that would prevent them from acting for the plaintiffs, and whether the solicitors were observably independent to a fair-minded, reasonably informed member of the public. The court needed to consider the duties owed by the solicitors to their clients, as well as their duties to the court. The court also needed to consider the potential relevance of the solicitors' evidence to allegations that the defendants behaved unconscionably.

The court found that there was a conflict of interest that prevented the solicitors from continuing to act for the plaintiffs. The court found that the solicitors' interest in contracts associated with the proposed land development and their efficacy in their conduct as the plaintiffs' solicitor in dealing with the contract between the plaintiffs and the defendants was such that a fair-minded, reasonably informed member of the public would doubt their independence. The court found that the solicitors were not observably independent and that their continued involvement in the matter would undermine the administration of justice. The court therefore made an order that the solicitors cease to act for the plaintiffs and take steps to withdraw as solicitors on the record within 14 days of the order.