NEW SOUTH WALES COURT ISSUES JUDGEMENT FOR LESLIE ABBOUD V/S COUNCIL OF THE LAW SOCIETY OF NEW SOUTH WALES CASE

Australia, May 9 -- New South Wales Land and Environment Court issued text of the following judgement on April 9:

1. Mr Leslie Abboud was admitted to practise as a solicitor on 9 July 1982. From March 2011 to November 2023 he has held a practising certificate entitling him to practise as an "employee of a law practice", not as a "principal". He was employed by Gerard Malouf & Partners Pty Limited (GMP) during that period. For two months, from 16 July 2023 to 14 September 2023, Mr Abboud was representing a corporation that successfully purchased a $70 million commercial property in North Sydney. The Council of the Law Society of NSW alleges that Mr Abboud was "engaged in legal practice" outside the terms of his practicing certificate and without professional indemnity insurance during the course of that transaction (the Transaction) and a subsequent legal dispute (the Dispute).

2. The corporation that purchased the property was Austin Ta De Investment Pty Ltd as Trustee for Ruby Miller Pty Ltd (the Purchaser). Mr Abboud says he was not acting as the legal representative of the Purchaser. Ruby Miller Pty Ltd was wholly owned by Mr Dong Xiao Yu (Mr Yu). Mr Yu is a friend and neighbour of Mr Abboud and Mr Abboud says he was merely communicating Mr Yu's instructions to others. All the legal work, such as the conveyancing and the "due diligence" was done by others.

3. The Council also alleges that Mr Abboud made false or misleading representations to other legal practitioners and to parties to the Transaction. Mr Abboud denies that the representations were false or misleading.

4. Based on these allegations and Mr Abboud's response, the Council decided that Mr Abboud is not a "fit and proper person" to hold a practising certificate: Legal Profession Uniform Law (NSW) (Uniform Law), s 76(b) and s 92(2)(b). The Council cancelled Mr Abboud's practising certificate for the year ending 30 June 2024 and prohibited him from applying for a practising certificate for three years: Uniform Law, s 94.

5. Mr Abboud applied to the Tribunal for administrative review of the Council's decision: Uniform Law, s 100. The Council submits that we should affirm the decision. Mr Abboud submits that we should direct the Council to reinstate his practising certificate.

Background to the Transaction and the Dispute

The Transaction

6. The Council's Reasons for Decision set out the background facts to the Transaction at [61]. Mr Abboud also gave evidence about the nature and scope of the Transaction. In summary, the Transaction related to the acquisition of a large commercial building in North Sydney, approximately 19 commercial leases and a data room containing documents (the Property). The acquisition was to be by way of purchase of units in a trust. The selling agent was Kenny Duncanson of CBRE Pty Ltd (Selling Agent). The vendor was VIA III Miller Head Pty Ltd as trustee for the Miller Holding Head Trust (Vendor). Matti Bechler, Special Counsel at Gilbert & Tobin, acted for the Vendor (Solicitor for the Vendor). Huichen (Vivian) Yang was Mr Yu's assistant. Zihao Wang is a director of Ta De Investment, Austin Ta De Investment and Ruby Miller.

7. In late May 2023, when Mr Yu was not in Australia, Mr Abboud received an email from the Selling Agent advertising the Property and seeking expressions of interest. Mr Abboud emailed the details to Mr Yu who asked him to negotiate the purchase and speak to Jason Gao (Mr Gao), a property developer who was also a friend of Mr Yu.

8. Mr Abboud and Mr Gao consulted expert valuers and inspected the Property. Mr Yu then instructed Mr Abboud to make an offer of $70,000,000 to purchase the Property. After three "letters of intent" (LOI) were exchanged, the Purchaser was the successful purchaser.

9. On 3 July 2023 Mr Abboud emailed the Selling Agent attaching Mr Yu's introduction. Mr Abboud sent the email from his work email address. The address block describes him as "special counsel" and contains the email address, phone number and website of GMP.

10. Mr Abboud arranged for the conveyancing aspects of the Transaction to be done by his son, Michael Abboud who is a licensed conveyancer. The Purchaser paid him for that work. Michael Abboud first conducted property searches on 12 July 2023 and kept his father informed of the work he was doing.

*Rest of the document can be viewed at: (https://www.caselaw.nsw.gov.au/decision/196130038e6cbad2be847601)

Disclaimer: Curated by HT Syndication.