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Qld lawyer wins fight against claims he ‘phoenixed’ his firm
A Queensland lawyer has overturned the Law Society’s decision not to grant him a practising certificate over an alleged incident with an arrow and unfounded claims he “phoenixed” his firm.
Naomi Neilson
The Queensland Civil and Administrative Tribunal (QCAT) found the Law Society was wrong to refuse formerly bankrupt lawyer, John Maximus Merlo, of Merlo Law, a practising certificate on the grounds he was “not a fit and proper person” to work in the legal profession.
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Part of the Law Society’s refusal was based on an incident at a school oval in 2017, where it was alleged Mr Merlo had fired an arrow from a bow across the oval and towards a footpath.
However, Mr Merlo denied firing the arrow, insisting he was instead “setting up the optical sighting components” on the bow, and no evidence was advanced by prosecution – photographs of the bows were no longer available, and a body camera was turned off.
QCAT judicial member, Peter Lyons, said he did not consider Mr Merlo’s evidence that he was sighting the bow without firing “to be so improbable that it should on that account be rejected”.
“I am not satisfied the applicant was firing arrows,” Mr Lyons said.
The Law Society also alleged Mr Merlo had “phoenixed” Merlo Law, or the Australian Construction Engineering Lawyers (ACEL), into a new company as part of its sale to JMMLBW for $4,500.
Just afterwards, a liquidator was appointed.
However, Mr Merlo denied that he arranged for ACEL to be transferred to JMMLBW just before the liquidator was appointed.
The Law Society submitted the transfer of the business, and a subsequent winding up of ACEL left credits of some $500,000 “is a matter of concern about the applicant’s financial trustworthiness”.
Mr Lyon found the Law Society’s evidence that Mr Merlo illegally phoenixed his law firm was not made out.
