legal ethics & professional conduct summary … ethics & professional conduct...

LEGAL ETHICS & PROFESSIONAL CONDUCT

SUMMARY

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TABLE OF CONTENTS

1. General Concepts ....................................................................................................................... 13 1.1. CONTENT ........................................................................................................................................... 13 1.2. ETHICS AND MORALITY ................................................................................................................ 13 1.2.1. Ethics and Morality ................................................................................................................................ 13 1.2.2. What are ethics? ...................................................................................................................................... 13

1.3. CODE OF ETHICS .............................................................................................................................. 14 1.4. CORE VALUES OF ACTING ETHICALLY ..................................................................................... 14 1.5. A PROFESSION .................................................................................................................................. 15 1.6. SOURCES OF PROFESSIONAL RULES ......................................................................................... 16 1.6.1. Common law ............................................................................................................................................. 16 1.6.2. Statute .......................................................................................................................................................... 16 1.6.3. Professional Rules .................................................................................................................................. 17

2. Admission to Practice .............................................................................................................. 18 2.1. EDUCATIONAL REQUIREMENTS ................................................................................................ 18 2.2. CHARACTER-‐BASED REQUIREMENTS ...................................................................................... 18 2.2.1. Factors relevant to good fame and character ............................................................................. 19 2.2.2. Mitigating Factors ................................................................................................................................... 23

2.3. READMISSION .................................................................................................................................. 25

3. Trust Accounting ....................................................................................................................... 27 3.1. DEFINITION OF TRUST MONEY .................................................................................................. 27 3.2. IRREVOCABLE AUTHORITIES ..................................................................................................... 28 3.3. LAWYER’S OBLIGATION RELATING TO TRUST MONEY ..................................................... 28 3.4. DUTIES RELATED TO ACCOUNTING FOR TRUST MONEYS ................................................ 29 3.4.1. Records to be kept .................................................................................................................................. 29 3.4.2. Duty to give account on request ....................................................................................................... 29 3.4.3. Trust account not to be overdrawn ................................................................................................ 29 3.4.4. Duty to report defalcations ................................................................................................................. 29 3.3.5. False names in trust account ............................................................................................................. 30 3.3.6. Use or withdrawal of trust moneys without authority .......................................................... 30

3.4. VERIFICATION OF TRUST ACCOUNTS ...................................................................................... 31 3.4.1. Audit of trust accounts ......................................................................................................................... 31 3.4.2. Confidentiality and privilege ............................................................................................................. 31

3.5. EXTERNAL INTERVENTION OVER TRUST ACCOUNTS ........................................................ 31 3.5.1. Receivers .................................................................................................................................................... 32 3.5.2. Supervisors ................................................................................................................................................ 33 3.5.3. Managers .................................................................................................................................................... 33

3.6. FAILURE TO ACCOUNT .................................................................................................................. 33

4. Responsibility to the client .................................................................................................... 34 4.1. RETAINERS ........................................................................................................................................ 34 4.1.1. Disclosure of information .................................................................................................................... 34 4.1.2. Terms of the Retainer ........................................................................................................................... 35 4.1.3. Parties to the retainer ........................................................................................................................... 36 4.1.4. Proof of the Retainer ............................................................................................................................. 37

4.2. AUTHORITY OF LAWYERS ........................................................................................................... 39


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4.2.1. Agency relationship ............................................................................................................................... 39 4.2.2. Actual authority ....................................................................................................................................... 39 4.2.3. Ostensible authority .............................................................................................................................. 41

4.3. LAWYER’S ACCEPTANCE OF WORK ........................................................................................... 41 4.3.1. Counsel/ Barrister .................................................................................................................................. 41 4.3.2. Solicitors ..................................................................................................................................................... 42 4.3.3. Ethical Issues ............................................................................................................................................ 43

4.4. TERMINATION OF LAWYER-‐CLIENT RELATIONSHIP .......................................................... 47 4.4.1. Doctrine of entire contract ................................................................................................................. 47 4.4.2. Duties of lawyers on termination of retainer ............................................................................. 48 4.4.3. Return of brief by counsel ................................................................................................................... 49 4.4.4. Ownership of documents on termination of retainer ............................................................. 49

5. Lawyer’s Duty in Tort ............................................................................................................... 50 5.1. OVERVIEW ......................................................................................................................................... 50 5.1.2. Identifying the client’s Interests and Objectives ....................................................................... 50

5.2. SCOPE OF DUTY OF CARE ............................................................................................................. 51 5.2.1. Scope of duty in the retainer .............................................................................................................. 51 5.2.2. Liability arising outside the scope of retainer ............................................................................ 51 5.2.3. Nature of the client ................................................................................................................................. 52 5.2.4. Circumstances in which advice is given ........................................................................................ 55 5.2.6. Disclosure of Relevant Information ................................................................................................ 57 5.2.7. Financial advice ....................................................................................................................................... 57 5.2.8. Non-‐Legal advice ..................................................................................................................................... 58

5.3. STANDARD OF CARE ...................................................................................................................... 59 5.3.1. Relevant standard ................................................................................................................................... 59 5.3.2. Expert evidence ....................................................................................................................................... 59 5.3.3. Knowledge of the law and procedure ............................................................................................ 60 5.3.4. Standard not informed by extraordinary foresight ................................................................. 60 5.3.5. Standard not informed by hindsight .............................................................................................. 60 5.3.6. Raising the standard of care ............................................................................................................... 60 5.3.7. Reducing the standard of care ........................................................................................................... 60 5.3.8. Giving Settlement advice ..................................................................................................................... 61 5.3.9 Giving unqualified advice ......................................................................................................................... 62

5.4. BARRISTER’S IMMUNITY FROM NEGLIGENCE ....................................................................... 63 5.4.1. General rule ............................................................................................................................................... 63 5.4.2. Justifications for the immunity ......................................................................................................... 63 5.4.3. Justifications against the immunity ................................................................................................ 64 5.4.4. Scope of the immunity .......................................................................................................................... 65

5.5. LIMITING LIABILITY – PROFESSIONAL STANDARDS REGIME .......................................... 66

6. Conflict of Interests ................................................................................................................... 67 6.1. PROHIBITION AGAINST LAWYER-‐CLIENT CONFLICT ......................................................... 67 6.1.1. General principle ..................................................................................................................................... 67 6.1.2. Scope of proscription ............................................................................................................................ 67 6.1.3. Informed client consent ....................................................................................................................... 68

6.2. TRANSACTIONS DEALINGS WITH CLIENTS ............................................................................ 69 6.2.1. General rule ............................................................................................................................................... 69 6.2.2. Borrowings from clients ...................................................................................................................... 69 6.2.3. Lending to clients .................................................................................................................................... 70 6.2.4. Lawyer’s investment in client’s enterprise .................................................................................. 71


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6.2.5. Lawyer buying from or selling to a client ..................................................................................... 71 6.2.6. Dealings with other than current clients ...................................................................................... 71

6.3. Making a Secret Profit ................................................................................................................... 72 6.3.1. General fiduciary principle ................................................................................................................. 72 6.3.2. Undisclosed referral fees and commissions ................................................................................ 73 6.3.3. Criminal responsibility ......................................................................................................................... 73

6.4. UNDUE INFLUENCE ......................................................................................................................... 73 6.4.1. Presumption of undue influence ...................................................................................................... 73 6.4.2. Gifts from client to lawyer ................................................................................................................... 74

6.5. LAWYER-‐CLIENT SEXUAL RELATIONS ..................................................................................... 74

7. Concurrent Conflicts ................................................................................................................. 75 7.1. NATURE OF CONFLICT ................................................................................................................... 75 7.2. SCOPE OF PROSCRIPTION ............................................................................................................ 75 7.3. CONTENTIOUS WORK .................................................................................................................... 80 7.4. NON-‐CONTENTIOUS WORK ......................................................................................................... 80

8. Acting against Former Clients ............................................................................................... 83 8.1. INTERESTS THAT IMPACT ON DECISION TO DISQUALIFY ................................................ 83 8.2. THRESHOLD FOR JUDICIAL INTERVENTAION ....................................................................... 85 8.3. NO PRIOR CLIENT-‐LAWYER RELATIONSHIP ......................................................................... 87 8.4. DISQUALIFICATION EXTENDING TO THE FIRM .................................................................... 88 8.5. APPLICATIONS AS ABUSES OF PROCESS ................................................................................. 90

9. Recovery of Costs ....................................................................................................................... 91 9.1. INFORMATION ................................................................................................................................. 91 9.2. COST AGREEMENTS ........................................................................................................................ 92 9.3. CONDITIONAL COST AGREEMENTS .......................................................................................... 93 9.4. BILL OF COSTS .................................................................................................................................. 95 9.5. ASSESMENT (TAXATION) OF LEGAL COSTS ........................................................................... 95 9.6. SECURING THE RECOVERY OF COSTS ....................................................................................... 97

10. Solicitor’s Lien ..................................................................................................................... 100 10.1. GENERAL PRINCIPLES ................................................................................................................ 100 10.2. RETAINING LIEN ........................................................................................................................... 100 10.3. PARTICULAR LIEN ....................................................................................................................... 103

11. Duty to the Court ................................................................................................................ 106 11.1. LAWYER’S DUTY AND ENFORCEMENT .................................................................................. 106 11.2. INDEPENDANT JUDGEMENT .................................................................................................... 106 11.3. CANDOUR IN THE PRESENTATION OF THE LAW ............................................................... 107 11.4. CANDOUR IN THE PRESENTATION OF THE FACTS ........................................................... 108 11.5. DEALING WITH WITNESSES ..................................................................................................... 109 11.6. ABUSE OF PROCESS ..................................................................................................................... 110

12. Duty to obey and uphold the law .................................................................................. 112 12.1. GENERAL PRINCIPLE .................................................................................................................. 112 12.2. CLIENT WHO BEHAVES UNLAWFULLY ................................................................................. 112 12.3. APPROACH TO GIVING ADVICE ............................................................................................... 114

13. Conduct of practice ............................................................................................................ 115 13.1. LAWYERS ADVERTISING ........................................................................................................... 115 13.2. CONDUCTING ANOTHER BUSINESS ........................................................................................ 116


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13.3. MEDIATION BY LAWYERS ......................................................................................................... 117 13.4. SUPERVISION AND ATTENDANCES ........................................................................................ 118

14. Relations with the professions and third parties .................................................... 119 14.1. LEGAL DUTIES TO THIRD PARTIES IN TORT ...................................................................... 119 14.2. LEGAL DUTIES TO THIRD PARTIES IN CONTRACT ........................................................... 120 14.3. LEGAL DUTIES TO THIRD PARTIES IN EQUITY .................................................................. 121 14.4. LEGAL DUTIES OT THIRD PARTIES UNDER STATUTE ..................................................... 122 14.5. PROFESSIONAL DUTIES OWED TO OTHER LAWYERS ..................................................... 122 14.6. PROFESSIONAL DUTIES to THIRD PARTIES ........................................................................ 124 14.7. PROFESSIONAL DUTIES TO UNREPRESENTED PARTIES ................................................ 125

15. Disputes and Discipline .................................................................................................... 126 15.1. OVERVIEW ...................................................................................................................................... 126 15.2. PROFESSIONAL MISCONDUCT ................................................................................................. 127 15.3. DISCIPLINARY ORDERS .............................................................................................................. 129

16. Types of Misconduct .......................................................................................................... 131 16.1. MISCONDUCT IN THE COURSE OF PRACTISE ...................................................................... 131 16.1.1. Courts and tribunals ............................................................................................................................ 131 16.1.2. Other lawyers or third parties ............................................................................................................... 131 16.1.3. Professional bodies .............................................................................................................................. 132 16.1.4. Trust accounting irregularities ....................................................................................................... 132 16.1.5. Lawyer-‐client conflict ......................................................................................................................... 132 16.1.6. Client-‐client conflict ............................................................................................................................. 132 16.1.7. Overcharging .......................................................................................................................................... 132 16.1.8. Failure to properly supervise .......................................................................................................... 133

16.2. MISCONDUCT OUTSIDE PRACTICE ......................................................................................... 133 16.2.1. Criminal convictions ............................................................................................................................ 133 16.2.2. Convictions for sex offences ............................................................................................................. 134 16.2.3. Drug related convictions ................................................................................................................... 135 16.2.4. Conviction for minor offences ......................................................................................................... 135 16.2.5. Tax indiscretions ................................................................................................................................... 135 16.2.6. Making misleading statements in court ...................................................................................... 135

17. Confidentiality and Privilege ......................................................................................... 136 17.1. CONFIDENTIALITY ...................................................................................................................... 136 17.2. PRIVILEGE ...................................................................................................................................... 138

18. Lawyer-‐Client Relationship ............................................................................................ 144 18.1. THE IMPORTANCE OF COMMUNICATION ............................................................................ 144 18.2. INTERVIEWING SKILLS .............................................................................................................. 147

19. Social Issues Concerning Lawyers ................................................................................ 153 19.1. GENDER INEQUALITY ................................................................................................................. 153 19.2. HEALTH ........................................................................................................................................... 153

20. Regulation and Reform of the Legal Industry ........................................................... 155 21. Negotiation ........................................................................................................................... 160 21.1. ALTERNATIVE TO ADVERALISM ............................................................................................. 160 21.2. ETHICS IN NEGOTIATION .......................................................................................................... 163

22. Access to Justice .................................................................................................................. 166


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22.1. RIGHT OF REPRESENTATION ................................................................................................... 166 22.2. PRO BONO ...................................................................................................................................... 167

23. The Adversary System ...................................................................................................... 170 23.1. THE ROLE OF ADVOCATES ........................................................................................................ 170 23.2. PROSECUTOR’S DUTY ................................................................................................................. 173 23.2. THE DEFENCE LAWYER’S DUTY .............................................................................................. 175


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LIST OF RESOURCES

1. Books

Dal Pont, G E, Lawyer’s Professional Responsibility (4th ed, 2010)

Y. Ross & P. MacFarlane, Lawyers’ Responsibility and Accountability: Cases, Problems and

Commentary, (3rd ed, 2007).

2. Legislation

Civil Law (Wrongs Act) 2002 (ACT)

Court Procedure Rules 2006 (ACT)

Legal Practitioners Admission Rules 2005 (NSW)

Legal Profession Act 2006 (ACT)

Legal Profession Act 2004 (NSW)

Legal Profession Act 2004 (Vic)

Legal Profession Act 2006 (NT)

Legal Profession Act 2007 (Qld)

Legal Practitioners Act 1981 (SA)

Legal Profession Act 2007 (Tas)

Legal Profession Act 2008 (WA)

Legal Profession Admission Rules 2007 (NT)

Legal Profession (Board of Legal Education) Rules 2008 (Vic)

Legal Profession (Admission) Rules (WA)

Legal Profession Regulation 2007 (ACT)

Legal Profession Regulation 2005 (NSW)

Legal Profession Regulation 2007 (NT)


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Legal Profession Regulation 2007 (Qld)

Legal Practitioners Regulations 2009 (SA)

Legal Profession Regulations 2008 (Tas)

Legal Profession Regulations 2005 (Vic)

Legal Profession Regulation 2009 (WA)

LPEAC Rules 2004 (SA)

Professional Standards Act 2004 (NT)

Professional Standards Act 2004 (Qld)

Professional Standards Act 2005 (Tas)

Professional Standards Act (Vic)

Professional Standards Act 2004 (SA)

Supreme Court (Legal Admission Rules 2004 (Qld)

Trade Practices Act 1974 (Cth)

3. Other sources

Francis, R D (1994), Business Ethics in Australia: a practical guide, Centre for Professional

Development, Kew, Victoria.

Guy, M (1990), Ethical Decision Making in Everyday Work Situations’ Quorum Books, New

York pp 14 - 19


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LIST OF CASES

Amadio Pty Ltd v Henderson (1998) 81 FCR 149 5.2.5

Austrust Pty Ltd v Astley (1993) 60 SASR 354. 5.2.5

Arthur JS Hall & Co v Simons [2002] 1 AC 615. 5.4.3

Al-Kandari v JR Brown & Co (a firm) [1988] 1 All ER 833. 14.1

Allinson v General Council of Medical Education & Registration [1894] 1

KB 750

15.2

Barry v Butlin (1838) 2 Moo 480 6.4.2

Blythe v Northwood (2005) 63 NSWLR 531 6.2.6

Bolger v Bolger (1985) 82 FLR 46. 10.2

Bolster v McCallum (1966) 85 WN (Pt 1) (NSW) 281 10.2

Brown v Inland Revenue Commissioners [1965] AC 244 3.3.6

Carradine Properties Ltd v DJ Freeman &Co [1999] Lloyd’s Law Rep PN

483

5.2.3

Castlereagh Motels Ltd v Davies-Roe (1989) 91 ACTR 1. 6.1.3

Allinson v General Council of Medical Education & Registration [1894] 1

KB 750.

Chancliff Holdings Pty Ltd v Bell [1999] FCA 1783 5.3.7

Chamberlain v Law Society of ACT (1993) 118 ALR 54 14.5

Cousins v Cousins (unreported, CA(NSW), 18 December 1990). 5.2.8

Curnuck v Nitschke [2001] NSWCA 176 5.2.2

Coshott v Sakic (1998) 54 NSWLR 667 4.1.4.3

Dew v Richardson [1999] QSC 192 5.1.2

Davies v Camilleri (2000) 10 BPR 18 5.2.3

Ex parte Tziniolis (1966) 67 SR (NSW) 44. 2.2

Ex parte Patience (1940) 40 SR (NSW) 96 10.2

Fruehauf Finance Corp Pty Ltd v Feez Ruthning (a firm) [1991] 1 Qd R

558

8.2

Freeman & Lockyer v Buckhurst Park Properties Ltd [1964] 2 QB 480 4.2.2

Frugtniet v Board of Examiners [2005] VSC 332 2.2

Frost & Sutcliffe v Tuiara [2004] 1 NZLR 782. 5.2.2


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Gosling v Gaskell [1987] AC 575 14.2

Griffiths v Evans [1953] 1 WLR 1424. 4.1.4.2

Groom v Crocker [1939] 1 KB 194 4.1.2.2

George v Pottinger [1969] Qd R 101 4.2.2.2

Giannarelli v Wraith (1988) 165 CLR 543 5.4.1; 5.4.4

Goldsworth v Brickell [1987] 1 All ER 853 6.4.1

Heydon v NRMA Ltd (2000) 51 NSWLR 1. 5.2.2; 5.3.7

Hawkins v Clayton (1988) 164 CLR 539. 5.2.1; 5.2.2

Holdway v Acuri (No 2) [2007] QSC 378 5.3.7

Hall v Foong (1995) 65 SASR 281 5.3.9

Hedley Byrne & Co Ltd v Heller & Partners Ltd [1964] ACT 465. 14.1

Jennings v Zilahi-Kiss, Zilahi-Kiss & MK Tremaine & Co Pty Ltd (1972) 2

SASR 493

5.3.4

Kennedy v Council of the Incorporated Law Institute of New South Wales

(1939) 13 ALJR 563

11.5

Kooky Garments Ltd v Charlton [1994] 1 NZLR 587 11.2

Law Society of NSW v Harvey [1976] 2 NSWLR 154. 6.2.1

Lonstaff v Birtles [2002] 1 WLR 470 6.2.6

Legione v Hateley (1983) 152 CLR 406 4.2.4

Little v Spreadbury [1910] 2 KB 658 4.2.2.2

Littler v Price [2005] 1 Qd 275 5.2.5

May v Mijatovic [2002] 26 WAR 95 5.2.4

Maguire v Makaronis (1997) 188 CLR 449 6.2.3

Marriage of Kossatz & Kossatz (1993) FLC 92-386 8.3

Mallesons Stephen Jaques v KPMG Peat Marwick (1990) 4 WAR 357 8.4

Murphy v Liesfield [1930] VLR 142 4.1.4.2

O’Reilly v Law Society of New South Wales (1988) 24 NSWLR 204. 6.1.3

Orzulak v Hoy (1989) Aust Torts Reports 80 – 293 5.2.7

People v Belge (1975) 372 NYS 2d 798 17.1

Prothonotary v Del Castillo [2001] NSWCA 75 2.2.2.2

Pianta v National Finance & Trustees 4.2.2.2

Polkinghorne v Holland (1934) 51 CLR 143. 4.2.2

Pegrum v Fatharly (1996) 14 WAR 92. 4.1.4.3

Queensland Law Society Inc v Stevens (1996) 17 Qld Lawyer Reps 27 11.2


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R v Noble (2000) 117 A Crim R 541 11.5

R v Neil (2002) 218 DLR (4th) 7.3

Re Farmer (1997) 950 P 2d 713 5.3.3

Re Bell [2005] QCA 151 2.2.1.2

Re a Firm of Solicitors [1992] 1 All ER 353 8.1

Re Hampton [2002] QCA 129. 2.2.1.3

Re Davis (1947) 75 CLR 409 2.2.1.5

Re Gruzman (1968) 70 SR (NSW) 316 11.4

Re a Solicitor (1991) 104 FLR 212 3.3

Re Sawley (1894) 15 LR (NSW) 147 16.1.1

Re a Barrister and Solicitor (1979) 40 FLR 26. 10.3

Re B [1981] 2 NSWLR 372 2.2.2.1

Re Veron (1966) 84 WN (Pt 1) (NSW) 136 16.1.7

Re Owen [2005] 2 NZLR 536 2.2.2.1

Re a Practitioner [2004] WASCA 283 16.2.3

Re Romer & Haslam [1893] 2 QB 286. 4.4.1

Rosin v MacPhail (1997) 142 DLR (4th) 304 8.2

Robins v Goldingham (1872) LR 13 Eq 440 10.2

Rogers v Whitaker (1992) 175 CLR 479 5.3.1

Ross v Caunters [1980] Ch 297. 14.1

R v Cox and Railton (1884) 14 QBD 153. 17.2

Southern Cross Commodities Pty Ltd (in liq) v Crinis [1984] VR 697. 17.2

Schiliro & Gadens Ridgeway (1995) 19 Fam LR 196 4.2.2.2

Stringer v Flehr & Walker (2003) Aust Torts Reports 81-718. 4.1.4.3

Samper v Hade (1889) 10 LR (NSW) 270 5.1.2

Spector v Ageda [1973] Ch 30 5.2.6

Southern Law Society v Westbrook (1910) 10 CLR 609. 5.2.7

Siskamanis v Pandeli Barbayannis & Co (unreported FC(Vic), 25 March

1993).

5.3.7

Seamez (Australia) Pty Ltd v McLaughlin [1999] NSWSC 9. 5.3.8

Sent v John Fairfax Publication Pty Ltd [2002] VSC 429 8.2

State ex rel Wal-Mart Stores Inc v Kortum (1997) 559 NW 2d 496. 8.2

Soia v Bennett [2003] WASC 158 10.2

Shand v MJ Atkinson Ltd (in liq) [1966] NZLR 551 10.2


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Taylor v Schofield Peterson [1999] 3 NZLR 434 7.4

Thomas v Legal Practitioners Admission Board [2005] 1 Qd R 331 2.2.1.5

Thomson v Howley [1977] 1 NZLR 16 4.2.2.2

Veghelyi v Council of the Law Society of New South Wales (unreported,

CA(NSW), 7 August 1992).

16.1.3

Wan v McDonald (1992) 105 ALR 473 8.1

Wentworth v de Montford (1988)15 NSWLR 348 4.4.4

Wroe v Seed (1863) 4 Giff 425 3.4.2

XY v Board of Examiners [2005] VSC 250 2.2.1.4

Yonge v Toynbee [1910] 1 KB 215 4.1

Yates Property Corporation v Boland (1998) 85 FCR 84. 5.3.7

Yamaji v Wespac Banking Corp (No 1) (1993) 115 ALR 235 8


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1. General Concepts

1.1. CONTENT

Ø The Legal Profession Act is a national model adopted by all States and Territories to

facilitate a national practice. Changes have also been made to the existing rules to meet

the requirements of the new Act and the Legal Services Board, the Legal Services

Commission, and the entire infrastructure required to give effect to the Act.

Ø A legal practising certificate issued by one State or Territory will be recognised by all the

others. This will elevate the issue of having to be admitted in each State that a

practitioner wishes to undertake practice.

1.2. ETHICS AND MORALITY

1.2.1. Ethics and Morality

Ø Ethics: refers to the character and practice or custom of the community. It is the science

or study of morality or rules of conduct.

Ø Professional ethics: the values and rules of conduct of an occupational group.

Ø Morals: are customs or conventions of a social group, distinguishing between right and

wrong.

Ø Values: principles or qualities which we consider worthy or desirable

Ø Beliefs: acceptance of an idea or statement of facts as being true

Ø Conventions: unwritten rules and practices governing the behaviour of a social or

professional group.

1.2.2. What are ethics?

Ø Ethics may be defined as a set of principles or standards governing the conduct of a

person or members of a profession or organisation.

Ø Legal ethics conveys the notion that professionalism carries with it responsibility and

duty.

Ø Francis (1994)1 proposes the following as a definition of ethics:

1 Francis, R D (1994), Business Ethics in Australia: a practical guide, Centre for Professional Development, Kew, Victoria.


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‘Ethics may be regarded as knowing what is right, doing what is right, and feeling

what is right…Ethics…concerns explicit codes of conduct as well as value systems.

Perhaps a useful definition in this context is that ethics is a highly explicit codified form

of behaviour designed to produce particular ends and act in accordance with

particular values.’

Ø The courts have also noted that:

‘Unless lawyers display the overriding duty of honesty that they owe to the

courts, their clients and to their fellow practitioners, public and judicial confidence

in the proper administration of justice would be undermined.’2

1.3. CODE OF ETHICS

Ø A code of ethics is a set of behavioural guidelines that members of a profession or an

organisation are required to observe in the course of their work practice. These

guidelines prescribe responsibilities that employees must undertake, conduct they must

avoid and situations in which they must not become involved.

Ø Benefits of a code of ethics:

• Publicly expresses an organisation’s commitment to a high standard of ethical

behaviour and social responsibility of employees

• Codifies the minimum acceptable standard of ethical behaviour by employees

• Codifies obligations which employees owe to colleagues, clients and the community

• Protects the reputation of the vast majority of employees who conduct themselves in

an ethical manner by applying sanctions to the minority who do not.

1.4. CORE VALUES OF ACTING ETHICALLY

Ø Mary Guy3 sets out the following the core values for acting ethically:

Ø Caring – treating people as ends in themselves, not as means to ends. This means

having compassion, treating people courteously and with dignity, helping those in need,

and avoiding harm to others.

Ø Honesty – being truthful and not deceiving or distorting. One by one, deceptions

undermine the capacity for open exchange and erode credibility

2 Incorporated Law Institute of NSW v Meagher 3 Guy, M (1990), Ethical Decision Making in Everyday Work Situations’ Quorum Books, New York pp 14 – 19.


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Ø Accountability – accepting the consequences of one’s actions and accepting the

responsibility for one’s decisions and their consequences. This means setting an

example for others and avoiding even the appearance of impropriety. Asking such

questions as “how would this be interpreted if it appeared in the newspaper”? Or “what

sort of person would do such a thing?” Bring accountability ‘dilemmas’ into focus.

Ø Promise keeping – keeping one’s commitments. The obligation to keep promises is

among the most important of generally accepted obligations. To be worthy of trust, on

must keep one’s promises and fulfil one’s commitments.

Ø Pursuit of excellence – striving to be as good as one can be. It means being diligent,

industrious, and committed; and being well informed and well prepared. Results are

important, but so is the manner and the method of achievement.

Ø Loyalty – being faithful and loyal to those with whom one has dealings. This involves

safeguarding the ability to make independent professional judgements by scrupulously

avoiding undue influence and conflicts of interest.

Ø Fairness – being open-minded, willing to admit error, and not over-reaching or taking

undue advantage of another’s adversities. Avoiding arbitrary or capricious favouritism;

treating people equally and making decisions based on notions of justice.

Ø Integrity – using independent judgement and avoiding conflicts of interest, restraining

from self-aggrandisement, and resisting economic pressure; being faithful to one’s

deepest beliefs, acting on one’s convictions, and not adopting an end-justifies-the-

means philosophy that ignores principle.

Ø Respect for others – recognising each person’s right to privacy and self-determination

and having respect for human dignity. This involves being courteous, prompt, and

decent, and providing others with information that they need to make informed decisions.

Ø Responsible citizenship – having one’s actions in accord with societal values.

Appropriate standards for the exercise of discretion must be practised.

1.5. A PROFESSION

Ø There are three defining attributes of a ‘profession’:4

• special skill and learning – must fulfil certain academic and practical requirements;

• autonomy or self-regulation; and

4 G E Dal Pont, Lawyer’s Professional Repsonsibility (4th ed, 2010)


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• public service – the main goal is service and pecuniary success is subservient to this

main purpose.

Ø The one distinguishing feature of a profession is an ethical foundation.

1.6. SOURCES OF PROFESSIONAL RULES

Ø It is in the public interest and for the protection of the public that the professional

activities of lawyers be regulated and controlled more so than any other profession.5

Ø The main sources of professional rules are:

o common law;

o statute; and

o professional rules.

1.6.1. Common law

Ø Fiduciary duty overlays the lawyer client relationship and impacts upon what the lawyer

can and cannot accept, the disclosure he or she must make and the transactions in

which he or she can engage

Ø Confidentiality is also at the core of the relationship between lawyer and client, whether

under contract or in equity, and forms the foundation for lawyers being restrained from

acting against former clients and the doctrine of professional privilege.

Ø Contract, tort and equity an in specified circumstances be the source of legal duties

owed by lawyers to third parties.

Ø Overriding each of these is the lawyer’s paramount duty to the courts.

1.6.2. Statute

Ø Legal professional legislation establishes the bodies that govern and regulate the

profession, make provision for disciplinary process, establish the parameters for legal

practice and cast upon lawyers various obligations to clients relating to, inter alia, trust

accounting and costs disclosure and recovery.

5 Re Bannister (1975)


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1.6.3. Professional Rules

Ø Serve as a standard of conduct in disciplinary proceedings as a guide for action in a

specific case and as a demonstration of the profession’s commitment to integrity and

public service.

Ø Express the profession’s own collective judgement as to the standards expected of

lawyers.

Ø They are a reliable and important indicator of the accepted opinion of the members of

the profession.

Ø Therefore they are also of considerable assistance in determining matters of misconduct

before a court, although a court is not bound to apply them.

Ø The court may also resort to professional rules as an indicator of the requisite standard

of care in tort.

Ø These rules cannot supplant legal principles as set out in judicial decisions or provide a

private cause of action against the lawyer.

Ø Guidance on professional responsibility, aiding lawyers to answer questions or resolve

dilemmas of that kind.

Ø Can therefore be used to justify actions.

Ø Should not be assumed that they are exhaustive of issues of professional responsibility.

Ø Role as a public relations document designed to convince the public of the seriousness

with which lawyers view their professional responsibilities.


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2. Admission to Practice

Ø To be admitted to practice in the legal profession both educational and character-based

requirements must be met.

Ø In NSW, according to s 24 of the Legal Profession Act 2004 (NSW), the requirements are

that any applicant must:

o be over 18 years of age,

o be sufficiently qualified (even if the applicant isn’t sufficiently qualified the

Admissions Board can give an exception, either qualified or unqualified, due to

experiences that the applicant may have)

§ This educational requirement is explained in more detail below.

2.1. EDUCATIONAL REQUIREMENTS

Ø To be admitted to practice as a barrister and solicitor, one must:

o complete a full time Australian law degree (equivalent of three years full time);6

o complete:7

§ One year’s articles of clerkship with a lawyer;

§ a recognised practical legal training course;

§ or a combination of the two.

2.2. CHARACTER-BASED REQUIREMENTS

Ø The basic character requirement for an applicant is good fame and character.

Ø The concept of ‘good fame’ focuses on the reputation of the applicant, but there is no

exclusive test.

Ø ‘Good character’ relates to the quality of the person, to be judged chiefly by his former

acts and motives.8

Ø Particularly important is evidence going to the honesty or otherwise of an applicant, as

honesty and fair dealing are weighted higher in the legal profession than in any other

profession.9

6 Court Procedure Rules 2006 (ACT) r 3605; Legal Practitioners Admission Rules 2005 (NSW) r 95; Legal Profession Admission Rules 2007 (NT) r 4; Supreme Court (Legal Admission Rules 2004 (Qld) r 6; LPEAC Rules 2004 (SA) rr 2.1-2.3; Legal Profession (Board of Legal Education) Rules 2008 (Vic) r 2.05; Legal Profession (Admission) Rules (WA) r 6. 7 Court Procedure Rules 2006 (ACT) r 3606; Legal Practitioners Admission Rules 2005 (NSW) r 96; Legal Profession Admission Rules 2007 (NT) r 5; Supreme Court (Legal Admission Rules 2004 (Qld) r 7; LPEAC Rules 2004 (SA) r 2.4; Legal Profession (Board of Legal Education) Rules 2008 (Vic) rr 3.01–3.04; Legal Profession (Admission) Rules (WA) r 7(2)(b),(c). 8 Ex parte Tziniolis (1966) 67 SR (NSW) 44.


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Ex parte Lenehan (1948) provides the precedent for good fame and character:

• Person admitted held out to public, person entrusted by the public with their affairs

and confidences, person in whose integrity the public can be confident.

• Person’s conduct must not undermine confidence of the public.

• Person must not have previously engaged in behaviour showing disrespect for the

law, need to be trust worthy and have integrity.

Wentworth v NSW Bar Association

McLelland, Carthuthers and Studdert JJA:

Ø The court held that the term ‘suitable …for admission’ in s 4(2) of the Legal Profession Act

2004 (NSW) equates to the requirement ‘fit and proper person’ as was previously required

by legislation.

Ø The applicant was consistent in the making, in the course of litigation, of baseless or

insupportable allegations of serious misconduct on the part of others, is conduct which, in

a barrister, would be inconsistent with a fundamental aspect of the professional standards

required of barristers. Where the objects of such allegations are judges of the courts before

which the barrister practices, such conduct also has a strong tendency to be destructive of

the relationship of mutual confidence and trust between the court and Bar which is

essential to the proper and efficient administration of justice.

2.2.1. Factors relevant to good fame and character

2.2.1.1. Previous criminal behaviour

Ø Full disclosure of previous criminal convictions must be made, as these directly relate to

an applicant’s good fame and character.

Ø Consideration must be given to the nature of the offence, how long ago it was

committed, the applicant’s age when it was committed, and evidence of the applicant’s

rehabilitation and restoration in the intervening period.10

Ø Not all criminality as a matter of course will prevent an applicant from being admitted.

Ø Some forms of criminal behaviour may be viewed as prima facie evidence of unfitness to

practice, particularly where it involves dishonesty on the part of the applicant.

9 Frugtniet v Board of Examiners [2005] VSC 332. 10 ACT s 11(1)(c); NSW s 9(1)(c); NT s 11(1)(c); Qld s 9(1)(c); Tas s 9(1)(c); Vic s 1.2.6(1)(c); WA s 8(1)(c).


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Thomas v Legal Practitioners Admissions Board [2005]

Facts:

Ø applicant committed nine offences over a three-month period involving misappropriation

of his employer’s money.

Held:

Ø fraudulent misappropriation on that scale suggested present unsuitability to practice in a

profession in which absolute trust must be of the essence.

2.2.1.2. Previous improper conduct in the curial process

Ø An applicant’s previous behaviour in the course of litigation is relevant to his good fame

and character.

Ø This is especially relevant where that behaviour, had it been engaged in by a practicing

lawyer, would have attracted disciplinary sanction.

Re Bell11

Facts:

Ø a family law litigant swore and filed affidavits that threatened judicial officers and had

unresolved contempt proceedings for breaching orders.

Held:

Ø it was inconsistent with suitability for admission that an applicant have an unresolved

allegation of contempt of court against him.

2.2.1.3. Previous improper conduct in the course of a profession or employment

Ø That an applicant has previously been disciplined whilst practicing law in another

jurisdiction is highly relevant to his good fame and character in an application for

admission in a new jurisdiction.12

Ø Improprieties in the course of practicing another profession or pursuing another

trade or occupation, are also relevant, particularly to the extent that they give some

indication as to aspects of the applicant’s character crucial to the practice of law.

11 [2005] QCA 151. 12 ACT s 11(1); NSW s 9(1); NT s 11(1); Qld s 9(1); Tas s 9(1); Vic s 1.2.6(1); WA s 8(1).


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Re Hampton13

Facts:

Ø applicant’s registration as a nurse had been cancelled in the wake of him inappropriately

dealing with three females under his care, and in pleading guilty to a charge of

performing a nursing service while not a registered nurse.

Held:

Ø his behaviour displayed a lack of appropriate professional judgment and discretion.

Admission was refused.

2.2.1.4. Infirmity

Ø There is a need to protect members of the public from ‘the damage that could be caused

by an unsuitable person, for example by a possibly mentally unstable legal practitioner,

handling their affairs”.14

XY v Board of Examiners15

Facts:

Ø as a result of sexual assault during her childhood, the applicant had been hospitalised

on psychiatric grounds on several occasions and had been convicted on numerous

criminal charges. She had engaged in alcohol abuse, attempted to harm herself, and

had overdosed on prescription medication.

Held:

Ø she could still be admitted because her criminal offending had not evidenced dishonesty,

but could be explained by her poor mental state, no charges since 197l. Medical

evidence showed her mental health was such that she was now fit to engage in practice.

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13 [2002] QCA 129. 14 XY v Board of Examiners [2005] VSC 250. 15 [2005] VSC 250.

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