Law Society of Ireland v Rawlinson

• Jurisdiction: Ireland
• Court: High Court
• Judge: Mr. Justice Morris
• Judgment Date: 01 January 1997
• Neutral Citation: 1995 WJSC-HC 2690
• Docket Number: [1994 No. 7150P],No. 7150P 1994
• Date: 01 January 1997

LAW SOCIETY v. RAWLINSON AND HUNTER

BETWEEN

THE LAW SOCIETY OF IRELAND

PLAINTIFF

AND

RAWLINSON AND HUNTER (A FIRM)

DEFENDANTS

1995 WJSC-HC 2690

No. 7150P 1994

THE HIGH COURT

Synopsis:

PRACTICE

Documents

Discovery - Motion - Issue - Prematurity - Justification - Discovery by defendant sought - Plaintiff's application made before delivery of statement of claim - Exceptional circumstances - Solicitors Accounts Regulations (No. 2), 1954 (S.I. No. 304), article 22 - Solicitors (Amendment) Act, 1960, s. 21 - Solicitors (Amendment) Act, 1994, s. 29 - (1994/7150 P - Morris J. - 24/7/95) - [1997] 3 IR 592

|Law Society of Ireland v. Rawlinson & Hunter|

Citations:

SOLICITORS ACCOUNTS REGS (NO 2) 1984 SI 304/1984 REG 22

RSC O.31 r12

GAYLE V DENMAN PICTURE HOUSES LTD 1930 KBD 590

RSC O.31 r14

SPEYSIDE ESTATE & TRUST CO LTD V WRAYMAND FREEMAN (BLENDERS) LTD (IN LIQUIDATION) 1950 CH 96

GOLLIN HOLDINGS LTD V ADCOCK 1981 NSWLR 691

SOLICITORS (AMDT) ACT 1960 S21

SOLICITORS (AMDT) ACT 1994 S29

1 Judgment delivered by Mr. Justice Morris the 24th day of July, 1995.

2 This matter comes before the Court by way of an appeal from the Order of the Master of the High Court made herein on 3rd March, 1995, (perfected on 26th April, 1995) and it seeks an Order striking out the Plaintiff's application for discovery.

3 By his Order the Master directed that the Defendants (who are a firm of accountants) "make discovery of all documents in their possession, power, control or procurement relating to the matter in question in the above entitled proceedings and in particular (but strictly without prejudice to the generality of the foregoing) all working papers, audit programmes, memoranda and other documents (howsoever described) relating to the carrying out by the Defendants of their functions and duties as accountants and auditors of the firm of Jonathan Brooks, Solicitors, of 17/18 Nassau Street, Dublin between 1st January, 1987 and 31st December, 1992."

4 The circumstances in which the Plaintiff, the Law Society's, application came before the Master can be summarised as follows.

5 The Law Society is a statutory regulatory body of all solicitors in practice in the State and the Solicitors Accounts Regulations provide that solicitors must furnish to the Society a certificate signed by an accountant prepared from an examination of the books of the solicitors in accordance with Regulation 22 of the Solicitors Accounts Regulations. This certificate is referred to as "the Accountants Report". It is alleged that the late Mr. Jonathan Brooks carried on a practice as a solicitor and between 24th March, 1987 and 8th October, 1992, when he died. The Defendants were the reporting accountants for his practice and they compiled and signed four reports dated "88, "89, "90 and "91. It is alleged that in July 1991 a routine investigation was carried out into the late Mr. Brooks" practice and from this it is alleged that a number of unsatisfactory matters were discovered. As a result Mr. Brooks" was required to attend at the Compensation Fund Committee meeting and his practising certificate was withheld. Further investigations followed after Mr. Brooks" death and it is alleged that Mr. Brooks had maintained financier-type activities within his practice and maintained a number of overseas accounts. As a result of these and other matters it is alleged by the Plaintiffs that the Defendants were negligent in the manner in which they carried out their function as reporting accountants to the Brooks" practice and in particular the manner in which they discharged their duties as reporting accountants to the practice. It is alleged that at his death Mr. Brooks, by reason of the transactions which he was carrying out, left a large deficit and the Plaintiffs say that they have identified four major areas in which allegations of negligence on the part of the Defendants acting in its preparation of the Accountants Report are clear. They are:-

6 (a) The scale of the entries in Mr. Brooks" financial records relating to "client" accounts not included in the Solicitors Accounts Regulations Accountants Report.

7 (b) The apparent volume of evidence on client files relating to such non-included "clients" accounts".

8 (c) The incidents of entries in the cash books (both receipts and payments) which were ascribed to clients without naming the client.

9 ...