Back in July, the Federal Court heard allegations solicitor Stefan Banovich was liable for negligence by working on and making a settlement offer with Western Areas Limited on behalf of his client, Claude Mpinda, without authority or instructions.

During those proceedings, Justice Michael Feutrill found there never existed a binding and enforceable agreement between Mpinda and his former employers at Western Areas, so Banovich could not be held liable for any alleged settlement work.

The proceedings against him have now officially been dismissed.

“In the alternative to the relief sought … the applicant claimed damages against the third respondent, his former lawyer, for negligence in making an agreement to settle his Fair Work Commission application,” Justice Feutrill said in this month’s judgment.

“As I determined on the trial of separate questions that the third respondent was not so liable, it is appropriate that the court make an order dismissing paragraph three of the originating application.”

Western Areas claimed that seven days after a conciliation conference in December 2016, the lawyers for both made and agreed to a $2,000 settlement and a written employment reference.

Banovich said he had “express authority and instructions” to do so, but Mpinda denied this conversation ever occurring.

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“Even in a dream, he never told me he will go to settle my matter, or in fact I didn’t even know what was going to happen, how things goes in a conciliation,” Mpinda said in submissions to the Federal Court.

In the October judgment, Justice Feutrill said that as a consequence of decision there was no settlement agreement, the proceedings in the Fair Work Commission against Western Areas have not resolved.

A declaration that there was no agreement was made “as it will bind the Fair Work Commission and the second respondent, Western Areas”.

The case is Mpinda v Fair Work Commission (No 3) [2024] FCA 1179.