Former Keddies’ partner Scott Roulstone hammering on the door of the NSW bar council for a ticket … Bar says there are unresolved issues … Decision pending in NSW Supremes
FORMER Keddies’ partner Scott Roulstone’s bid to join the NSW Bar continued in the Supreme Court yesterday (Monday, Jan. 19).
Angus Stewart, for the Bar Association, resisted Roulstone’s application for an interim practising certificate on the basis of unresolved contempt of court allegations.
Citing the court’s obligation to protect the public, he argued that it was “not proper or appropriate or safe for a practising certificate to be issued”.
Keddies notoriously was in the frame for overcharging clients, with claims climbing into the millions of dollars.
In 2012 Roulstone’s practising certificate was suspended by the NSW Law Society due to transactions made in the lead up to Roulstone’s bankruptcy, since annulled.
However in June last year, Roulstone and fellow former Keddies’ partner, Tony Barakat, successfully challenged the Law Society’s decision in the NSW Supremes.
Justice Robert Beech-Jones found that assets transferred prior to his bankruptcy were not a dishonest attempt to defeat creditors.
The conduct of Roulstone, and his partner Tony Barakat, “was not necessarily to their credit”, but not sufficiently shabby as to deny them their tickets.
Roulstone’s barrister, Terrence Lynch, argued that this earlier victory was itself evidence of his client’s current fitness.
In response, the bar council said that the contempt allegations had not been considered by Justice Beech-Jones.
Those allegations date back to late 2011 when the Keddies’ partners were accused of approaching clients of another personal injury shop, Firths, who were suing to recover overpayments.
The court subsequently restrained Roulstone and Barakat and their agents from contacting or in any way communicating with former clients who had provided instructions to Firths.
Firths submitted that the injunction had been breached. A former client, Xi Li, was approached by a former Keddies’ interpreter, Helena Li, and directed to the offices of law firm Margiottas.
Mr Xi signed a settlement agreement and personally received an $80,000 cheque signed by Roulstone.
In May 2013, Justice Michael Adams indicated that he would refer the alleged contempt of court to the Prothonotary. Nothing further seems to have happened.
Roulstone denies the contempt allegation. He told Justinian after yesterday’s hearing:
“I have never contacted a client inappropriately. The simple fact is the client in question was represented at that time by another law firm.”
Roulstone also rejected the bar’s claim that “the plaintiff has failed to give a full and proper explanation” as to the extent of his involvement in securing settlement in the Li case.
“I fully disclosed this issue in my application to the Bar Association in June 2014.”
He added subsequently:
“After months of letters we needed to move it along and that was the basis of my application.”
Extraordinarily, the NSW Law Society did not rely on overcharging as a ground of unfitness in the case it brought in the ADT.
Russell Keddie fell on his sword and claimed that he alone was responsible for the firm’s overcharging in the Meng case.
The Legal Services Commissioner at the time, Steve Mark hailed this as a significant “victory”. Yet, it involves a major suspension of belief to think that in a firm of only three partners Russell alone was responsible for this pattern of over-billing.
At one point lawyers for the Keddies’ partners threatened defamation proceedings against The Sydney Morning Herald when it alleged the firm had indulged in systematic overcharging.
Proceedings were never commenced.
Justice David Davies stated that he would deliver his decision on Roulstone’s application later this week.