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Melbourne firm accused of wasting client’s money
A Melbourne law firm successfully fought against sensational allegations that it wasted a client’s time and money.
Naomi Neilson
Vstar Lawyers and Consultants, a CBD-based firm, was accused of breaching Australian Consumer Law (Victoria) because its services were allegedly “not fit for purpose” and it did not provide “due care and skill” in its work with client, Taotoamall Australia (TTM).
TTM engaged Vstar in 2020 to set aside a default judgment obtained by B&P Design to recover a claimed debt of $258,705.07.
TTM claimed Vstar was unable to resolve the matter, engaged three different counsel, and provided conflicting advice.
The client compared Vstar to Robinson Gill, the law firm it engaged after Vstar was terminated. According to TTM, Robinson Gill received a default judgment within weeks without engaging counsel.
In a points of claim submission, TTM told the tribunal it “spent so much time and money for their poor level of professional standard”.
Referring to the allegation of different advice, Tang said it needed to be understood in the context of a “potential for a conflict” between TTM and a guarantor, which had been raised by the firm.
As for a claim that Robinson Gill resolved the matter within weeks and without the involvement of a counsel, Tang said the actual time frame to resolve the whole of the proceedings took five months and that all of the firm’s correspondence was signed by a counsel.
“In these circumstances, I am not satisfied that TTM has established that Vstar failed to act with due care and skill,” Tang said.
Tang added that while Vstar’s services could have been improved, such as being clearer in its communication, “this does not mean that the services were not provided with an acceptable level of skill”.
“Similarly, I am not satisfied the steps taken by Vstar were not reasonably fit for purpose or they could not have reasonably been expected to resolve either or both the setting aside of the default judgment and/or substantive County Court proceeding,” Tang added.
Naomi Neilson
Naomi Neilson is a senior journalist with a focus on court reporting for Lawyers Weekly.
You can email Naomi at:
