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1. Dhillon Ravy (Dhillon) is a legal practitioner and principal solicitor of Ravy Law, practicing in family and criminal law. Heath Gruber (Heath) is an employee solicitor of Ravy Law. Dhillon, but not Heath, is authorized to handle trust money. 
2. Freya Nesbo (Freya) is Dhillon’s cousin. She is younger than Dhillon by 2 years. Their families were close and lived in the same neighborhood. Freya and Dhillon grew up together. 
3. Freya was in a small business venture with Rico Bellini (Rico). They had incorporated a company named Freico Pty Ltd. Both are directors and the only shareholders. They have since fallen out and Freya believes that Rico has misappropriated $290,000 from the company for his personal use under the guise of business expenses. She wants Rico to account for these “business expenses” and to claim the $290,000 from him. 
4. One Saturday evening Freya goes to see Dhillon at his home. She is in tears. Apparently Rico has engaged solicitors who have sent Freya a letter of demand for the sum of $200,000 that Rico alleges Freya has unlawfully siphoned from the company. The letter requires Freya to respond by the following Monday. 
5. Freya seeks Dhillon’s assistance to respond to the letter of demand and to initiate proceedings against Rico for the unaccounted $290,000. She produces to Dhillon documents relating to the finances of Fresco Pty Ltd. 
6. Initially, Dhillon declines Freya’s request. He informs Freya that he does not have much experience in commercial disputes and civil litigation. He suggests to her to consult his friend who is a litigation lawyer and commercial law specialist. 
7. Freya implores Dhillon for help as she cannot afford to engage a private lawyer. She tells him that Rico’s claim is spurious and designed to deter her from taking any action to hold him accountable for the $290,000. Moved by her distress and against his better judgment, Dhillon reluctantly agrees to hear Freya out. 
8. Dhillon spends about 3 hours getting the facts from Freya and looking through her documents. At close to midnight that Saturday evening, Dhillon forms the view that Rico’s allegations against Freya are baseless or at least highly improbable, and therefore unprovable. On the other hand however, he also doubts that Freya has a viable claim against Rico. 
9. As Freya is still distraught, Dhillon thinks she will not be able to understand the legal niceties so he tersely suggests to her that both of them should walk away and write off the business as a loss. Dhillon does not go into detail and again he suggests that she should consult his friend, the litigation lawyer and commercial law specialist. 
10. As the younger cousin, Freya usually follows Dhillon’s lead. This time however, she surprises him by firmly refusing to accept his suggestion. Freya tells Dhillon that she wants to engage him to respond to the letter from Rico’s solicitors and to make a claim against Rico. 
11. In view of the following Monday being the deadline to respond to Rico’s claim, and because he does not want to appear callous to his family and relatives, Dhillon resigns himself to his fate and grudgingly tells Freya to “leave it” with him to “do whatever that needs to be done”. Freya wipes her tears and kisses Dhillon on the cheek, whispering, “Thanks, I know I can count on you”. She then leaves, happy. 
12. On Monday morning Dhillon replies to Rico’s solicitors, Ivanke Lawyers, refuting Rico’s allegations against Freya and demanding an account of the “business expenses” and a refund of the “misappropriated” $290,000 to the company. Dhillon emails to Freya a copy of his reply to keep her informed of progress. 
13. On Friday the same week, Dhillon receives a reply from Ivanke Lawyers denying that their client Rico had misappropriated any money from the company and reiterating Rico’s previous allegations against Freya. Dhillon calls Freya and requests that she attend at his office the following week to sign documents. 
14. Meantime, Dhillon drafts a Writ and Statement of Claim to pursue Freya’s claim against Rico, together with the “overarching obligations” and “proper basis” certificates pursuant to rules 4.09 and 4.10 of the County Court Civil Procedure Rules 2018. 
15. When Freya attends at his office, Dhillon asks her whether she is sure that she wants to proceed against Rico. He reiterates his opinion that both of them should walk away from the dispute. However, Freya maintains that she wants to claim against Rico. 
16. Dhillon is tempted to stop assisting Freya. However, again fearing it would appear to his family and relatives as if he is abandoning her, Dhillon grits his teeth and gets Freya to sign the “overarching obligations” certificate, telling her that it is “a formality”. 
17. Freya asks Dhillon about costs. In response, he asks her whether she has heard of “no-win, no-fee” arrangements. Freya affirms that she does. Dhillon tells Freya that he will act for her on a “no-win, no- fee” basis. Freya asks Dhillon further how much he thinks the legal costs would be. He tells her “minimum $5,000”. There is no further discussion and Freya leaves Dhillon’s office after signing the “overarching obligations” certificate. 
18. Dhillon signs the Writ, the Statement of Claim and the “proper basis” certificate. He files them in court together with the “overarching obligations” certificate signed by Freya. He then arranges for copies of these documents to be served on Ivanke Lawyers. Dhillon also emails to Freya copies of these documents with a brief note explaining that legal proceedings have been commenced against Rico as instructed by her. 
19. Two days later, Dhillon prepares a costs agreement and emails it to Freya together with a cover letter. The cover letter states that the costs agreement is a “no-win, no-fee arrangement” and that she should keep it for reference. Both the costs agreement and the letter are silent on the meaning of a “win”. 
 

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  • Posted on : April 16th, 2019
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