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IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY
CIV-2013-404-004979 [2014] NZHC 1063
BETWEEN DEREK EDWIN CUTTING
Appellant
AND
YIUCHUAN (JESSE) LIU KIN TO (STEVEN) LAU DINAH QIU
Respondents
Hearing: 8 April 2014 Appearances:
Simon Jefferson QC for the Appellant
Respondents in Person
Stephen Mills QC as Amicus CuriaeJudgment:
20 May 2014
RESERVED JUDGMENT OF MOORE J
This judgment was delivered by on 20 May 2014 at 4:00pm pursuant to Rule 11.5 of the High Court Rules.
Registrar/ Deputy Registrar
Date:
CUTTING v LIU & ORS [2014] NZHC 1063 [20 May 2014]
Introduction
[1] This is an appeal against the decision of Judge P A Cunningham delivered on
1 November 2013. Her Honour refused the plaintiff’s application for leave to allow Mr Keene, an Auckland barrister, to appear as both counsel for the plaintiff and as a witness in a claim to recover his fees.
Factual background
[2] The appellant, Mr Cutting, is an Auckland solicitor who, in 2008, briefed Mr Keene to act as counsel for the respondents in relation to a dispute they had with an Auckland secondary school.
[3] Mr Keene filed the proceedings in the Auckland District Court. However, by December 2008 the relationship between Mr Keene and the respondents soured. They expressed dissatisfaction in Mr Keene’s performance and terminated his engagement.
[4] Although substantial fees had been billed for and paid, approximately
$15,000 remained owed by the respondents for Mr Keene’s services.
[5] The respondents refused to pay the amount outstanding although they did meet all of Mr Cutting’s fees.
[6] The respondents complained to the New Zealand Law Society about the quantum of the fee as well as aspects of Mr Keene’s performance. The filing of the complaint had the effect, through the operation of s 161 of the Lawyers and Conveyancers Act 2006, of effecting a temporary stay of the District Court proceedings until final disposition of the complaint.
[7] The costs assessor upheld Mr Keene’s fee. The Standards Committee resolved to take no further action, a decision which was later confirmed by the Legal Complaints Review Officer on 5 October 2010.
[8] Mr Cutting’s action for the recovery of Mr Keene’s fees was reactivated on
14 October 2010 when the plaintiff successfully applied for judgment by default. Judgment was entered on 18 October 2010.
[9] On 15 November 2010, the respondents applied to set aside the judgment. Their application was dismissed in the District Court on 20 January 2011. They appealed to this Court. Of the grounds on appeal, two have some relevance to the present appeal, namely:
(a) Mr Keene could not appear as counsel because he had made an affidavit containing controversial material; he was in any event conflicted; and his appearance at Court was in breach of the intervention rule;
(b) Mr Keene did not competently carry out his task as counsel.
[10] Williams J allowed the appeal, setting aside the judgment on the basis that the
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