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Feuding partners address venture with British firm in court

Former partners behind an Adelaide law firm have turned to the Federal Court over an allegedly secret venture with a British firm.

user iconNaomi Neilson 27 March 2024 Big Law
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The relationship between LK Law’s founders Scipio John Lipman and Jason Demetrios Karas deteriorated over a dispute concerning the latter’s alleged secret dealings with UK firm, Mishcon de Reya (MDR).

Lipman alleged Karas breached fiduciary duties by entering into a framework agreement with MDR without his knowledge.

It was also alleged MDR knowingly participated in this breach by approving the framework agreement in April 2021.

The matter is currently ongoing in the Federal Court.

About three-and-a-half-days into a cross-examination of Lipman, counsel for MDR requested to begin its own cross-examination on matters counsel for Karas “had deliberately not touched upon”.

This included the issue of the knowledge of MDR and the circumstances in which Lipman became aware of the venture.

MDR also wished to cross-examine Lipman on the “counterfactual”, being what he would have done if the alleged conduct did not occur.

Counsel for Lipman objected to this, telling the court MDR “has the same interests” as Karas and there was “nothing in the counterfactual” which would suggest a “divergence” of interests.

Justice John O’Sullivan found there are “quite distinct matters” MDR are concerned with, and could not be satisfied it had the same “identical” interests as Karas in the matter.

“I am satisfied that the topics upon which senior counsel for MDR proposes to cross-examine are important and the nature of the cause of action and the subject matter of the proceedings are such that MDR should be entitled to cross-examine Mr Lipman, albeit on a limited basis,” Justice O’Sullivan ordered.

More to come.

Naomi Neilson

Naomi Neilson

Naomi Neilson is a senior journalist with a focus on court reporting for Lawyers Weekly. 

You can email Naomi at: This email address is being protected from spambots. You need JavaScript enabled to view it.

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