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Sydney firm fights ‘hopeless’ fraud, obstruction of justice allegations

A law firm that advised a real estate agent on a dispute with his partner was dragged into a “hopeless and manifestly groundless” dispute and forced to face allegations of fraud and obstruction of justice.

user iconNaomi Neilson 05 July 2023 SME Law
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Following a breakdown of a partnership and the closure of the business, Raine & Horne Ingleburn real estate agent Md Rajibul Islam issued a summons to the NSW Supreme Court alleging his partner’s law firm, Mitry Lawyers, caused him significant financial loss and mental trauma.

In the summons, Mr Islam alleged Mitry Lawyers was involved in the facilitation of witness tampering, dishonest practice, malpractice and non-compliance. He sought $50 million in liquidated damages.

Mr Islam also sought costs of the proceedings against his former business partner, alleging the firm started the matter in its “own financial interest and wasted significant time of the court”.

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In April this year, Mitry Lawyers sought to have the proceedings dismissed or the summons struck out.

The law firm contended the proceedings “have been wrongly commenced by the summons” and that any claims made in the summons “are hopeless and ought to be dismissed”.

Mr Islam was told to file a statement of claim but failed to do so and failed to turn up to proceedings three times in a row.

Justice David Davies said he was satisfied the current proceedings were “hopeless and manifestly groundless”.

“This is not simply a case of the proceedings being commenced by the use of the wrong means, that is, summons instead of a statement of claim,” Judge Davies explained in the judgment.

“The plaintiff’s failure to comply with the registrar’s orders endeavouring to regularise the proceedings and his failures to appear when the proceedings are listed need also to be taken into account.”

The summons was dismissed, and Mr Islam was ordered to pay costs.

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