Allen Caratti has succeeded in preventing Hotchkin Hanly from representing his opponent in court, claiming the law firm had previously acted for him and former partner Tina Bazzo.
Allen Caratti has succeeded in preventing Hotchkin Hanly Lawyers from representing his opponent in court, claiming the law firm had previously acted for him and former partner Tina Bazzo.
Supreme Court of Western Australia Justice Michael Lundberg found Hotchkin Hanly should be prevented from representing Walthamstow in the company’s lawsuit against Mr Caratti and Ms Bazzo.
In his judgment delivered this morning, Justice Lundberg found the law practice should be restrained from acting for Walthamstow to prevent a breach of loyalty owed to Mr Caratti and Ms Bazzo as its former clients.
Walthamstow, trading under Reliance Finance, is suing Mr Caratti and Ms Bazzo for $6 million over a subdivision project it financed.
According to the judgment, Hotchkin Hanly replaced Walthamstow’s previous solicitors Taylor Smart in August this year.
The judgment said Mr Caratti and Ms Bazzo promptly brought an application to restrain Hotchkin Hanly from acting in the matter because the trial was due to start in seven weeks.
Mr Caratti and Ms Bazzo claimed Hotchkin Hanly previously acted for the latter over a property matter in 2018 and 2019.
The judgment also said the law firm did not act directly for Mr Caratti but for various companies controlled by him or Ms Bazzo.
Mr Caratti, according to the judgment, said he personally provided instructions to Hotchkin Hanly for matters involving his companies from 2008 to 2018.
The pair alleged Hotchkin Hanly could use the information gained from their previous engagements which the law firm rejected, citing confidentiality conduct rules.
Justice Lundberg found that a fair minded, reasonably informed member of the public would be concerned when told of the situation.
“The critical aspect is that Allen Caratti personally instructed the law practice and sought its advice in respect of a range of issues as concerns the process of subdivision and related matters,” he said in his judgment.
“It is safe to infer (and I so infer) that the law practice, over the decade long period of being engaged by the interests of Allen Caratti and Ms Bazzo, acquired a solid understanding of their business practices.”
According to the judgment, Hotchkin Hanly had also acted for Mr Caratti’s brother John in litigation against him and one of Ms Bazzo’s companies in the WA Supreme Court.
The Caratti brothers are in a long running litigation in the Supreme Court, ongoing since 2008.
