ACCC discontinues action taken against lawyers for allegedly misleading conduct in relation to billing

The Australian Competition and Consumer Commission has discontinued proceedings in the Federal Court, Darwin, against Morgan Buckley Pty Ltd and Mr Anthony Whitelum.

The ACCC alleged that Morgan Buckley contravened the Trade Practices Act 1974 by issuing tax invoices for legal fees to a client that were not calculated in accordance with a retainer agreement between Morgan Buckley and that client.

The discontinuance of the proceedings follows discussions between the parties and acceptance by the ACCC of a court enforceable undertaking requiring Morgan Buckley, to:

• endeavour to maintain its quality assurance program for three years – which has recently been enhanced to minimise the likelihood of such billing errors occurring
  
• notify the ACCC in the event that quality assurance certification is lost during that period.

Morgan Buckley has maintained quality Assurance Certification in accordance with AS/NZS ISO 9001: 2000 since May 2002, prior to the commencement of the action.

No undertaking has been given by Mr Whitelum.

Morgan Buckley denied that it engaged in misleading or deceptive conduct and maintained that a mistake was made in the calculation of the relevant invoices. The ACCC acknowledges that Morgan Buckley repaid the client the amount in question before the action was commenced. The amount in question was $1326.40.

Extensive ACCC investigations of other Morgan Buckley files disclosed that the conduct in question was an isolated incident. The ACCC acknowledges the co-operation of Morgan Buckley throughout the course of the matter.

Each party has agreed to bear its own costs of the action.

The ACCC considers the professional sector to be an important part of the Australian economy and that the Trade Practices Act has an important role to play in regulating conduct of professionals. The ACCC will continue to monitor competition and competitive practices in the professional sector.