Threats - Threats to Escalate Criminal Proceedings - Settlement Negotiations - Mediation - Ethics



Settlement Negotiations & Mediation

Ethics

Threats


[A] Threats - Threats to Escalate Criminal Proceedings - Settlement Negotiations

Compounding an Offence?

> "The enclosed draft letter, the letter to the Southport Police Chief read: “We act for Susan Sing in respect of the above lease. Our client wishes to make a complaint about the conduct of one Andrew Haberfield with respect to the issuance of three cheques by Andrew Haberfield on behalf of Prosport Beverage Company Pty Ltd which were dishonoured on presentation.” It provided some details and continued: “We request that Mr Haberfield and his wife be interviewed at 101 Cabana Boulevard, Benowa Waters and such action be taken as is appropriate as we believe that an examination of the account from which these cheques were written will demonstrate that at the time of issuance the signatory to the cheques could not have held any or any reasonable belief that there were funds in the account to meet payment.” You will appreciate that passing valueless cheques is still an offence in Queensland. Mr Haberfield complained that he had been threatened with detriment and menaces, a breach of the criminal law. The Chief Justice observed the threat should be carefully defined. It was to ask the police to investigate the dishonouring of the cheques, an investigation which if followed through may or may not have led to a prosecution. It was not actually a threat to launch criminal proceedings were civil satisfaction not made, or to institute a prosecution. His Honour referred to the old solicitors’ handbook as providing no relevant guidance although he did for completeness refer to the old paragraph 18.01 which dealt with correspondence. His Honour went on “This situation falls into a category described by Professor Dal Pont the author of Lawyers’ Professional Responsibility: ‘…there is arguably no ethical objection to a lawyer, instead of threatening criminal proceedings as an alternative to civil redress indicating that the possible commission of a crime (such as if goods are not returned), will be referred to the appropriate authorities.’” The relevant criminal provision which potentially made what the solicitor did an offence was, s 133(1) of the Criminal Code: 13 “Any person who asks for, receives or obtains or agrees or attempts to receive or obtain any property or benefit of any kind for himself, herself or any other person upon any agreement or understanding that the person will compound or conceal a crime or will abstain from, discontinue or delay a prosecution for a crime or will withhold any evidence thereof is guilty of an indictable offence.” I pause to observe in my practise there were many occasions when I gave advice to solicitors about this provision, mostly after they had realised they may have breached it. His Honour continued: “It is in any case difficult to say that, in terms of s 133(1), the respondent asked for a benefit upon an understanding he would abstain from a prosecution: other matters aside, he was not the prosecuting authority.” The competing view is a court may interprets 133 more broadly than that and contemplate it is enough that a person is a potential complainant for the purposes of the section. It is a grey area. His Honour was alive to this for he observed: “Nevertheless the Code provision and the ethical provisions in other jurisdictions together with the Queensland cases earlier referred to, indicate that a practitioner needs to be very careful not to cross a rather finely drawn line in a situation like this. …The content of a lawyer’s ethical obligation obviously is not defined by avoidance of criminal breach. The criminal law is relevant but the ethical bar is set at a much higher level. …The issue is whether his being a solicitor rendered that [the letter] objectionable in an ethical sense. Did he make improper use of his being a solicitor, and thereby exhibit a lack of the probity expected of a solicitor?” His Honour continued: “There was in the present case nothing ethically objectionable in this treatment, albeit strong, of a party on the other side of the adversarial ledger…. It is important to note that he stopped short at foreshadowing inviting the police service to investigate the possible commission of an offence. He did not go on actually to threaten to launch a prosecution.” His Honour observed, and you may think these comments were intended for an audience wider than merely the persons involved in this case: “Pressure is daily brought to bear to encourage people to discharge their legal obligations. There is nothing legally or morally wrong with that, assuming reasonable restraint… There is a continuum applicable to practitioners, with legitimate pressure at the one end and improper intimidation at the other. It may, in any particular case, be difficult to delineate the precise point at which any application of pressure becomes improper. That is why practitioners must be extremely careful before resorting to any even arguably threatening conduct. They are well advised to err on the side of caution, as in all aspects of their professional approach. With the increasingly intense demands of clients and the high level of competition which these days characterises the practise of the law, practitioners will inevitably be asked to stretch the limits of their consciences: they must be steadfast not to yield to that temptation. The Tribunal is not satisfied that the pressure applied by the respondent after allowing for his professional capacity, was improper or unfair. I record my gratitude to the panel members for assisting me in making that value judgment.” ...": Henry James, 'Ethical Issues in Correspondence Between Solicitors' delivered to FNQLA, Cairns, (QSC)" [2012] QldJSchol 77 <https://austlii.edu.au/cgi-bin/viewdoc/au/journals/QldJSchol/2012/77.html>. 

> s 133(1) Criminal Code (Q): <https://www5.austlii.edu.au/au/legis/qld/consol_act/cc189994/s133.htm>. 

> s 44 Crimes Act 1914 (Cth): <https://www.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/ca191482/s44.html>. 

> s 316(2) Crimes Act 1900 (NSW): "(2)  A person who solicits, accepts or agrees to accept any benefit for the person or any other person in consideration for doing anything that would be an offence under subsection (1) is guilty of an offence. Maximum penalty—Imprisonment for— (a)  5 years—if the maximum penalty for the serious indictable offence is not more than 10 years imprisonment, or (b)  6 years—if the maximum penalty for the serious indictable offence is more than 10 years imprisonment but not more than 20 years imprisonment, or (c)  7 years—if the maximum penalty for the serious indictable offence is more than 20 years imprisonment. (3)  It is not an offence against subsection (2) merely to solicit, accept or agree to accept the making good of loss or injury caused by an offence or the making of reasonable compensation for that loss or injury."

Solicitors Conduct Rules

Professional Misconduct - conduct in the pursuit of professional activities that would reasonably be regarded as disgraceful or dishonourable by professional colleagues of good repute and competency

Appropriate Foundation for Threat?


[B] Mediation Ethics and Responsibility


[B.A] Mediation & Negotiation Privilege - Proceedings of Mediation and Offers at Mediation - FL Act as Lex Specialis - Evidence Act 1995 (Cth)