Task 3.1 final

Ethics and Professional Responsibility Task 3, Activity 1 Email and events INDEX Email from Joel Edge ......................................................................................................................... 2 Events occurring during Joel Edge’s absence .................................................................................... 4 Appendix 1 ....................................................................................................................................... 10 Appendix 2 ....................................................................................................................................... 11 Appendix 3 ....................................................................................................................................... 12 Appendix 4 ....................................................................................................................................... 13 6fbc2fe59bbced2861fd786d19fa9df86ab1d14f.docx Page 1 of 15 © The College of Law Limited

Email from Joel Edge EMAIL From: Joel Edge (Principal) To: (Student Lawyer) CC: Alex Green (Law practice book-keeper) Subject: Arrangements during my week leave Date: Today I’ll be on leave in Indonesia next week. I’ll get a sim card when I arrive at the airport and let you and Alex know what the number is. Telephone and internet access will be problematic for most of the week as I’ll be in some remote parts of Lombok. Do what you can to help Alex and attend to any queries that might arise. Asher Zheng the manager of our local College Bank branch where our trust and office accounts are kept is very helpful if there is any problem. Alex has his phone number. I’ve appointed you signatory on the office and trust accounts. Just in case you are ill or for any other reason can’t operate the accounts I’ve also appointed my brother Mitchell as signatory to operate both accounts. Some of the things that you will need to attend to while I’m away (there may be others) are listed below. Tina Hudson sale to Li This matter is scheduled to settle on Friday of next week. Tina has authorised Edges Solicitors to do anything necessary to complete the electronic conveyancing transaction. Tina’s property at Seabreeze is unencumbered so when settlement takes place the whole of the proceeds of sale will be paid into Tina’s personal bank account rather than into our trust account. Our costs agreement with Tina provides that Tina will pay a fixed fee of $1,800 for our costs and disbursements of completing the settlement. I have sent a bill in advance to Tina for $1,800 on account of our costs for this matter but note the matter isn’t concluded until settlement has taken place. Dino Demarco ats Police (ledger/matter ref 13099) Demarco’s sentencing following his guilty plea to the charge for supply of methamphetamine is about two months away. I‘ve given him an indication as to the likely sentence which includes a term of imprisonment and a substantial fine. He might want to discuss his situation with you but all legal work has been completed. He still owes Karen Assi, the barrister who we briefed to appear for him at his trial, $1,200. See if you can extract that from him if he comes in. Sprowle v Davis Peaches Pty Limited This is a claim by our clients Jack and Jill Sprowle for damages for false and misleading conduct under the Australian Consumer Law. We agreed to act and to obtain an advice as to prospects of success. Our clients agreed to pay $2000 for our costs and an estimated $3,500 for a barrister, Mark Richards, to provide his advice. The advice has been received and a copy sent to our clients a few days ago. We also sent our bill of costs as agreed. We have not yet received Mark Richards’ account. Our clients may well want to discuss the advice with you next week. If they do, please check the trust and office ledgers and the file to establish if Mark Richards’ account has been received. Jack and Jill are good clients and usually pay our bills immediately. If any amount is outstanding please ask them to settle the account. If Mark Richards’ account has been received, arrange for that to be paid. 6fbc2fe59bbced2861fd786d19fa9df86ab1d14f.docx Page 2 of 15 © The College of Law Limited

Events occurring during Joel Edge’s Absence Events Monday Tina Hudson attends the office. She advises she has moved out of her house and the keys have been left with the agent on sale. All is ready for Friday’s settlement. She gives you a cheque drawn on her personal account with Westpac for $1,800 on account of our agreed costs and disbursements to complete the settlement. Q1 (a) Should Tina’s cheque be deposited into the firm’s trust account or office account? (b) In accordance with your answer to question 1(a) identify the accounting records that are required to be made upon your receipt of that cheque? Should Tina’s cheque be deposited into the firm’s trust account or office account? In accordance with section 1(a) of the Legal Practitioner’s Act, Tina’s cheque should be deposited into the office account, as the money is being received by the practice on account of legal costs in advance of providing the services. This direction is appropriate as Tina and the law firm have an agreement that Tina will transfer $1,800 for our costs and disbursements for completing the settlement on her behalf. In accordance with your answer to question 1(a) identify the accounting records that are required to be made upon your receipt of that cheque? Consistent with regulation 43 of the Legal Profession Uniform General Rules 2015, upon receiving the cheque, 6fbc2fe59bbced2861fd786d19fa9df86ab1d14f.docx Page 4 of 15 © The College of Law Limited

Tuesday Jack Sprowle arranges to meet with you later that day. You obtain a printout of the trust and general account ledgers in the matter of Sprowle v Davis Peaches Pty Limited as set out at Appendix 1 . Q2 The firm’s bill of costs for $2,000 for the initial advice was sent to the client 2 days ago and there are sufficient funds in trust to pay the bill. (a) What steps should you take to pay the firm’s bill from trust? (b) What are the steps and records required for a funds transfer from trust to office? What steps should you take to pay the firm’s bill from trust? What are the steps and records required for a funds transfer from trust to office? You also check the Sprowle v Davis Peaches Pty Limited file, which now includes Mark Richards' memo of fees in the sum of $3,500 which was only received this morning. Q3 Assuming the bill of costs of $2,000 has now been paid, how should you go about paying Mark Richards’ fees? Consider the client’s trust ledger balance and instructions you could obtain from your client today. Wednesday Dino Demarco attends on you unannounced. He says that he has sold his car as he will have no use for it if he is sentenced to imprisonment. He received $15,000 in cash for the car. He wants you to invest it for him in an interest-bearing account pending his sentencing, so that he can pay any fine that may be imposed and any additional costs that might be incurred. He doesn’t want to be able to operate on the account as he knows he’ll only spend it. Dino wants only you, Joel or someone else from the law practice to be able to access the money. After discussion, he gives you the cash together with a written direction to deposit the money in an interest-bearing account with Westpac for a 6-month term in the name of Edges Solicitors. Dino also hands you $1,200 in cash and asks you to give the cash to Karen Assi with his compliments and apologies for the delay in payment of her fees for appearing on his behalf at the trial. At Appendix 2 are forms for an Edges Solicitors Law Practice Trust Account receipt (X2) and at Appendix 3 is the form of a deposit slip of Edges Solicitors Law Practice Trust Account. 6fbc2fe59bbced2861fd786d19fa9df86ab1d14f.docx Page 5 of 15 © The College of Law Limited

Thursday Sonal Singh attends her appointment. Ivana Measure’s survey report has been received with her invoice for $800. After discussion, Sonal instructs us to send a letter of demand to Taylor Merdec requiring part of a fence between the two properties to be removed. Sonal hands you a cheque drawn on her personal bank account in favour of Ivana Measure for the $800 due. Q5 (a) What should you do with the cheque received from Sonal? (b) What accounting records, if any, are required to be completed? (a) What should you do with the cheque received from Sonal? (b) What accounting records, if any, are required to be completed? Alex Green tells you that Jim Payne and Valerie Sanders have called and asked for the balance in their account to be transferred to them this afternoon. There is a nil balance in the office account. A copy of the trust ledger in respect of the matter of their proposed purchase of the Seabreeze newsagency and the electronic funds transfer awaiting your signature is at Appendix 4 . Q6 (a) Assuming you are authorised to approve the payment of trust money, should you sign the electronic funds transfer in its present form? (b) If the electronic funds transfer is signed and the transfer is completed, identify any consequences. (a) Assuming you are authorised to approve the payment of trust money, should you sign the electronic funds transfer in its present form? (b) If the electronic funds transfer is signed and the transfer is completed, identify any consequences. Q7 Assume your first practising certificate was issued to you three months ago. You 6fbc2fe59bbced2861fd786d19fa9df86ab1d14f.docx Page 7 of 15 © The College of Law Limited

therefore have a restricted practising certificate as you are required to be supervised. Assume also that Joel’s brother, Mitchell, has been admitted but has never engaged in legal practice and Mitchell is not employed in the law practice and has no other connection with it. Joel has directed you and Mitchell to sign any trust account cheques in his absence. (a) Does the legislation entitle Joel to direct you or Mitchell to sign any trust account cheques in his absence? (b) Is this appropriate? (a) Does the legislation entitle Joel to direct you or Mitchell to sign any trust account cheques in his absence? (b) Is this appropriate? Friday Tina Hudson’s sale settled this morning. The balance sale proceeds that were paid into the PEXA environment by the purchaser of Tina’s house was disbursed directly into Tina’s personal bank account by PEXA in accordance with our direction. Previously, Tina provided written instructions authorising the payment of our costs and disbursements from the money held in trust on her behalf Q8 Even though Tina has authorised payment and provided us a cheque on Monday, before Tina’s trust money can be withdrawn from trust and transferred to the office account to pay the bill of costs, what must you ensure has occurred since you deposited her cheque from Monday? Even though Tina has authorised payment and provided us a cheque on Monday, before Tina’s trust money can be withdrawn from trust and transferred to the office account to pay the bill of costs, what must you ensure has occurred since you deposited her cheque from Monday? Q (a) Identify the type of trust money that represented the balance sale proceeds as a 6fbc2fe59bbced2861fd786d19fa9df86ab1d14f.docx Page 8 of 15 © The College of Law Limited

Appendix 1 Appendix 1 Trust Account Ledger ACCOUNT NAME: Sprowle, Jack and Jill v Davis Peaches Pty Limited ADDRESS: 6/6 Conclave Avenue, Seaside MATTER: Damages claim in Federal Court DATE 20XX RECEIVED FROM OR PAID TO PURPOSE REC/ CHQ/ JNL NO. DR CR DR/ CR BAL (Four months ago) Fr J. Sprowle On a/c c/d – initial advice R231 2,500 00 CR 2,500 00 Office Account Ledger ACCOUNT NAME: Sprowle, Jack and Jill v Davis Peaches Pty Limited ADDRESS: 6/6 Conclave Avenue, Seaside MATTER: Damages claim in Federal Court DATE 20XX RECEIVED FROM OR PAID TO PURPOSE REC/ CHQ/ JNL NO. DR CR DR/ CR BAL (Two days ago) Costs rendered – advice re prospects of success CJ213 2,000 00 DR 2,000 00 6fbc2fe59bbced2861fd786d19fa9df86ab1d14f.docx Page 10 of 15 © The College of Law Limited

Appendix 2 Appendix 2 EDGES SOLICITORS 118201 PO Box 2 Your capital City 31 January 2023 ABN 62 751 281 333 Received from Dino Demarco the sum of One Thousand and Two Hundred dollars and Zero cent s Cash For and on behalf of Karen Assi : Supply of Methamphetamine - Criminal (client name) (matter description) For: Barrister fees Ledger Account / Matter Reference # Received by: 123456 on behalf of: Joel Edge Edges Solicitors Law Practice Trust Account EDGES SOLICITORS 118202 PO Box 2 Your capital City 20 xx ABN 62 751 281 333 Received from the sum of dollars and cents $ Cheque/Cash For and on behalf of : (client name) (matter description) For: Ledger Account / Matter Reference # Received by: on behalf of: Edges Solicitors Law Practice Trust Account 6fbc2fe59bbced2861fd786d19fa9df86ab1d14f.docx Page 11 of 15 © The College of Law Limited

Appendix 3 Appendix 3 Trust Account Deposit Slip COLLEGE BANK 20xx THE SUM OF One Thousand and Two Hundred Dollars and Zero Cents NOTES $1,200 COIN TELLER COMM NO. ITEMS PAID IN BY Dino Demarco CHEQUES as herein (signature) FOR CREDIT OF Edges Solicitors Law Practice TOTAL $ 1,20 0 Account No 123 456 789 TRUST ACCOUNT Proceeds of Cheques etc. will not be available until cleared PARTICULARS OF CHEQUES, ETC. DRAWER BANK PLACE AMOUNT 1. 2. 3. 4. 5. 6fbc2fe59bbced2861fd786d19fa9df86ab1d14f.docx Page 13 of 15 © The College of Law Limited

Appendix 4 Appendix 4 Trust Account Ledger ACCOUNT NAME: J. Payne and V.Sanders purchase of Seabreeze newsagency ADDRESS: 10 Amy Street Seabreeze ACCOUNT NUMBER/ MATTER REFERENCE: 2022/XX DATE 20XX RECEIVED FROM OR PAID TO PURPOSE REC/ CHQ/ JNL NO. DR CR DR/CR BAL (Three months ago) Fr Payne & Sanders On a/c c/d R231 5,000 00 CR 5,000 00 (Two months ago) To ASIC Incorporation fees C231 545 00 CR 4,455 00 Two months ago) to Edges Office account For costs C233 2,455 00 CR 2,000 00 EDGES SOLICITORS Law Practice Electronic Funds Transfer Request Date: (today) Client Name: J. Payne and V. Sanders Matter Number: 2022/XX Matter Name: J. Payne and V. Sanders purchase of Seabreeze newsagency Bank details of the payee have been verbally validated and confirmed: Confirmed Amount to be transferred: $2,455.00 Payee/Account Name: J. Payne & V. Sanders BSB: 312 -876 Account Number: 3456787 Reason for Transfer refund of balance of moneys held in trust on completion of matter TRANSFER AUTHORISED BY: ……………………………… PRINT NAME: ………………………………………………… 6fbc2fe59bbced2861fd786d19fa9df86ab1d14f.docx Page 14 of 15 © The College of Law Limited