• April 6th, 2016


Paper, Order, or Assignment Requirements

You are required to give legal advice and make submissions in response to the scenario below. Your submissions should be based on the law and you are not obliged to make strictly partisan (client-oriented) submissions if your view is that your client’s position is not correct. You are also entitled to be candid with the court and are not subject to normal rules regarding client confidentiality.
Also include the case of Dore  v Billinghurst  [2006] QCA 494 (24 November 2006), aswell as other relevant cases to the problem scenario

Problem scenario

Mohammed is a solicitor practicing in commercial law in a small practice in Parramatta. Mohammed has always been interested in business and economics, and accordingly, has set up a number of small companies to engage in various commercial activities and initiatives (known as his “private commercial ventures”), in addition to running his law practice. Mohammed was recently upset to discover that his long-time partner in his law firm wanted to retire. That retirement resulted in a significant drop in revenue for Mohammed’s firm. The flow-on effect was that Mohammed had less personal income to use to support his private commercial ventures. Mohammed was confident that his private commercial ventures were very profitable in the long term but, due to the retirement of his law firm partner, he was no longer able to obtain loans from regular commercial entities as he normally had been able to. Mohammed approached three people for funds. For two of those people, Jill and Sara, Mohammed explains that he runs his private commercial ventures and that they should seek independent legal advice before investing in his ventures. Jill is a current client. Sara is a former client. For the third person, Simone, a current client, Mohammed explained that he ran his own private commercial ventures and sought funding from her, but he did not ask her to obtain legal advice. This was because Simone, who was independently wealthy and had previously sought advice from Mohammed about investing her wealth, also worked for the Westpac Bank as a loans manager. Mohammed obtains the loans from his clients and does his best to keep his law practice and the private commercial ventures afloat. However, Mohammed had underestimated the energy and time required to run the law practice and his private commercial ventures as a result of his former law partner’s retirement and found himself in serious financial difficulty. Mohammed decided to save the law practice and sent his private commercial ventures into liquidation (bankruptcy). The three investors are furious that they have lost their investment money and complain to the Law Society about Mohammed, each citing that he acted improperly and had a conflict of interest.

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