LEGAL SERVICES COMMISSIONER ANNUAL REPORT 2012

contentsAbout the Legal Services Commissioner 3Commissioner’s report 4Achievements and significant events 6Chapter 01 Report of operations 7Complaints handling 7Education 25Policy and research 29Building and maintaining relationships 30Chapter 02 Human resources 31Organisational structure 31Workforce data and staffing trends 32Staff training and professional development 34Chapter 03 Governance 35Compliance statements 35Chapter 04 Financial report 43Chapter 05 Complaints data 82Introduction to complaints data 82Complaints data under the Legal Profession Act 2004 82Appendices 10201 Delegations 10202 Disclosure index 114Legal Services COMMISSIONER Annual Report 2012 1

ABOUT THELEGAL SERVICES COMMISSIONERThe Legal Services Commissioner (LSC) is responsible for the receipt andhandling of complaints about lawyers in Victoria.The LSC was established on 12 December 2005 by the Legal Profession Act 2004 (the Act).Michael McGarvie is the Commissioner. Michael is also the Chief Executive Officer of the LegalServices Board (LSB). The LSC is an independent statutory authority accountable to the VictorianParliament. The Attorney-General, The Hon. Robert Clark mp, is the responsible Minister.Our objectivesThe statutory objectives of the LSC are to:■■■■■■ensure that complaints against lawyers and disputes between law practicesor lawyers and clients are dealt with in a timely and effective mannereducate the legal profession about issues of concern to the profession andto consumers of legal services, andeducate the community about legal issues and the rights and obligationsthat flow from the lawyer-client relationship.Our valuesOur values are drawn from the Victorian Public Sector values as follows:Impartiality: Making decisions objectivelyIntegrity: Earning and sustaining public trustAccountability: Taking responsibility for resultsResponsive service: Demonstrating a spirit of serviceHuman rights: Providing a fair go for everyoneRespect: Providing fair and objective treatmentLeadership: Leading by exampleLegal Services COMMISSIONER Annual Report 2012 3

Education and OutreachIn accordance with the statutoryobjective of my office to educate theprofession and consumers of legalservices on issues of concern tothe profession and consumers, mystaff have continued to assist meto deliver numerous presentations,seminars and workshops to variouscommunity organisations and lawyergroups. I continually seek to uncoverand discuss consumer issues arisingfrom the client-lawyer relationshipand legal services provided todetermine whether I, as a regulator,need to take further action to addressthese concerns. During the year, myoffice delivered 30 seminars andpresentations to more than 1,600lawyers throughout Victoria.LitigationDuring 2011-2012, I commenced28 disciplinary proceedings at theVictorian Civil and AdministrativeTribunal against lawyers oversubstantive disciplinary matters suchas trust account issues/defaults anddishonesty offences. The outcomesof disciplinary proceedings upholdthe importance of lawyers acting withhonesty and integrity, being awareof their professional obligations,and seeking support and assistancefrom colleagues and professionalassociations when required.PolicyThrough the restructure process,I decided to establish a single policyteam to service the policy and researchneeds of both the LSB and LSC. Thisnew team is known as the RegulatoryReform and Policy Team. TheRegulatory Reform and Policy Teamworked closely with the Departmentof Justice on amendments to theLegal Profession Act 2004, developednew LSB policies on mental health,and new organisation-wide policiesregarding privacy and the protectionof whistleblowers.Working relationshipwith the Law Institute ofVictoria and Victorian BarDuring the year, I continued to furtherstrengthen our existing collaborative,co-regulatory relationships with theLaw Institute of Victoria (LIV) and theVictorian Bar (Bar), the Victorian legalprofession associations. As delegatesof the LSC, I rely on their expertise andabundance of knowledge to supportthe workings of my office to fulfil itsregulatory function.Outlook for 2012-13In addition to fulfilling my role as aregulator, in the next reporting yearI intend to focus my efforts on:• enabling the functions of the LSCand LSB to merge across a widerange of tasks• building a closer workingrelationship with the LIV and Bar, and• tackling presenting consumer issuesand matters affecting the legalprofession via a more detailed andcomprehensive education strategy.I would like to personally thank my stafffor the tremendous amount of hardwork and dedication they have shown inthe 2011-12 reporting year. Additionally,I want to acknowledge the significantcontributions made by our delegates,the LIV and Bar, throughout the year.The key achievements of my office aredue to their continued commitment toour objectives and values.Michael McGarvieLegal Services CommissionerLegal Services COMMISSIONER Annual Report 2012 5

Achievements andSignificant Eventsfinaliseda restructure that aimedto align the functions ofthe LSC and LSB with theproposed national law.More information on page 15.implementeda new initiative which involvespublishing the outcomes ofVCAT decisions involvingthe LSC on its website. Moreinformation on page 20.delivered30 seminars to more than 1,600lawyers across metropolitanMelbourne and regionalVictoria. More Information onpage 25.RECORDED226 complaints older than 120days remaining outstandingas at 30 June 2012 comparedwith 490 in 2010-11 and 1,003 in2009-10. More information onpage 88.FINALISED2,304 complaints comparedwith 1,982 complaints received.More information on page 23.prEPAReda submission to the VictorianParliament’s Law ReformCommittee Inquiry into Accessto Justice by People with anIntellectual Disability and theirFamily and Carers.More information on page 29.RESOLVED563 complaints within 30 dayscompared with 505 in 2010-11 .More information on page 23.implementeda number of initiatives toeducate lawyers aboutpractising in the area of debtcollection. One initiative involvedpreparing a new fact sheet forlawyers, which highlightedcommon issues in complaintsabout debt collection. Moreinformation on page 18.RECORDED571 complaints outstandingat 30 June 2012 comparedwith 848 in 2010-11.More information on page 88.6 Legal Services COMMISSIONER Annual Report 2012

chapter 01REPORT OF OPERATIONSThis chapter discusses the LSC’s performance incarrying out its functions during the reporting year.Complaints handlingThe LSC is responsible for handling complaints about Victorian lawyers,including resolving disputes between clients and law practices or lawyers.From the pre-complaint stage untilthe complaint is finalised, the LSCassists legal consumers and othercomplainants with their complaints.The LSC understands that thecomplaints process may be confusingand aims to make it as simple andtransparent as possible. This sectiondiscusses the LSC’s performance incarrying out its complaints handlingfunction in the reporting year.Please note that the data featuredin this chapter is a summary of thecomplaints handled in 2011-12. Fullcomplaints data for this period isavailable in Chapter 5 (page 82).EnquiriesThe LSC offers an enquiries serviceto assist members of the publicwith preliminary queries relating tothe client-lawyer relationship andthe complaints handling process ingeneral. An enquiries officer will advisemembers of the public who contact uson whether the LSC has the power tohandle their matter, and if so, how theircomplaint will be dealt with. Thosepeople wishing to lodge aformal complaint will be directed to thecomplaint form on the LSC website oralternatively provided with a complaintform and further information aboutthe complaints handling process.Complainants whose matters donot fall within the LSC’s jurisdictionwill be advised of any relevantorganisations which may be able toprovide assistance. In some matters,the LSC may provide information thatwill assist the consumer to resolve theissue directly with their lawyer. Forexample, a caller may ask about theirentitlement to receive their file backfrom their lawyer, and may be betterable to achieve this knowing when alawyer can and cannot retain a client’sfile. Enquiries can be made over thetelephone, in writing, by email or inperson. A telephone interpreter can bearranged for people who need one.The LSC received 5,316 enquiries in2011-12 compared with 4,572 in 2010-11. The LSC provided complaint formsto 2,779 people who contacted theenquiries service. In 41% of the cases,the person making the enquiry tookno further action after discussing thematter with an enquiries officer.ComplaintsConsumers and other complainantsmay make two types of complaints – acivil complaint (which includes a costsdispute) or a disciplinary complaint(a complaint relating to conduct).Civil complaintsA civil complaint involves a civildispute. A civil dispute is any one of thefollowing:• a costs dispute between a lawyer orlaw practice and a client in relationto legal costs not exceeding $25,000• a claim that a person has suffereda pecuniary loss as a result of anact or omission by a law practice orlawyer (a financial loss or pecuniaryloss dispute), or• any other genuine dispute between aperson and a law practice or lawyer.Generally speaking only a client of alawyer can make a civil complaint, asopposed to a disciplinary complaint,which generally can be made by anyone.Figure 1 Number and outcome of enquiriesYearComplaintForm sentInformationprovided –no furtheraction takenReferral toother body/NojurisdictionConciliatedoutcomeTotal enquiriesreceived2011-12 2,779 (52%) 2,154 (41%) 360 (7%) 23 (0.5%) 5,3162010-11 2,270 (50%) 1,635 (35%) 667 (15%) 0* 4,5722009-10 2,590 (50%) 1,666 (32%) 946 (18%) 0* 5,202*Figures were not recorded in previous years.Legal Services COMMISSIONER Annual Report 2012 7

Disciplinary complaintsDisciplinary complaints raiseserious allegations about thelawyer’s professional conductthat, if established, would amountto unsatisfactory professionalconduct or professional misconduct.Unsatisfactory professional conduct isdefined to include conduct of a lawyergenerally occurring in connection withthe practice of law that falls shortof the standard of competence anddiligence that a member of the publicis entitled to expect of a reasonablycompetent lawyer.Examples of unsatisfactoryprofessional conduct include:• instances of conflict of interest• significant and obvious negligence,and• failure to advise about the expiryof a limitation period.Professional misconduct is moreserious. It is defined to include:• unsatisfactory professional conductof a lawyer, where the conductinvolves a substantial or consistentfailure to reach or maintain areasonable standard of competenceand diligence, and• conduct of a lawyer, whetheroccurring in connection withthe practice of law or occurringotherwise than in connection withthe practice of law, that would, ifestablished justify a finding thatthe lawyer is not a fit and properperson to engage in legal practice.Examples of professionalmisconduct include:• trust defalcations• dishonest or fraudulent activity• taking of executor’s commissionwithout obtaining appropriateconsent, and• serious public misbehaviour outsidethe legal practice.The LSC also deals with complaintsthat raise service related issues. Thesecomplaints often raise issues that arecomplex, yet may not warrant the LSCtaking disciplinary action against thelawyer. In most cases, the complaintcan be resolved with the assistance ofthe LSC.Examples of service related complaintsinclude:• lawyers not responding promptlyto communication• delays in legal matters causedby lawyers, or• confronting or impolite behaviouror language used by lawyers.Please note that the data for servicerelated complaints in this report isincluded in the category of disciplinarycomplaints, given the way they havehistorically been handled. Thesecomplaints might better be expressedas potential disciplinary complaints.Mixed complaintsA mixed complaint contains both a civilcomplaint and a disciplinary complaint.Profile of new complaintsreceived in 2011-12The LSC received 1,982 newcomplaints in 2011-12. Consistentwith previous years, the number ofdisciplinary complaints outnumberedcivil complaints. However, the numberof civil complaints received continuedto increase, while the number ofmixed complaints decreased by 4%.This variation may be due to a changein the way complaints are classifiedand allocated by the LSC. In the past,service related issues in civil disputeswere classified as disciplinary matters,which gave rise to the mixed complaint.The practice of the LSC now is tohandle service related issues in away that generally would not resultin disciplinary findings as part of thecivil dispute.Consistent with previous years, thetop five areas of law that featured innew complaints were family/de facto,probate and estate, conveyancing,commercial and criminal law. Costscharged and bills issued were the mostcomplained about issues followedby negligence, dishonesty and trustmoney. The LSC is pleased to see acontinuing decline in the number ofcomplaints about communicationissues. Poor communication is acommon cause of complaints to theLSC. As was done last year, the LSCcontinued to highlight to lawyersthe importance of maintaining goodcommunication with clients.Figure 2 Number and type of complaints receivedYear Civil only Disciplinary only Mixed All Civil All Disciplinary Total Complaints2011-12 886 (45%) 994 (50%) 102 (5%) 988 (50%) 1,096 (55%) 1,9822010-11 812 (41%) 992 (50%) 180 (9%) 997 (50%) 1,172 (50%) 1,9842009-10 568 (25%) 1,094 (50%) 549 (25%) 1,117 (51%) 1,643 (74%) 2,211See Figure 28 in Chapter 5 for more information about new complaintsFigure 3 Top five areas of law that featured in new complaintsArea of Law 2009-10 2010-11 2011-12Family/De facto 512 443 497Probate and Estate 214 201 214Conveyancing 197 240 174Commercial 217 171 167Criminal 115 138 118See Figure 33 in Chapter 5, for a full list of the areas of law that featured in new complaints.8 Legal Services COMMISSIONER Annual Report 2012

Figure 4 Top six issues that featured in new complaintsNature of Allegation 2009-10 2010-11 2011-12Costs/Bills 1,030 838 777Negligence – including bad case handling 623 369 336Dishonest/Misled 152 131 163Trust money – including failure to account, mismanagement of funds 169 133 134Documents – including retention and lost 134 108 130Communication with client – including failure to return calls, give progress reports 171 102 99See Figure 32 in Chapter 5, for a full list of the issues that featured in new complaints.How are complaintsdealt with?Civil complaintsComplaints that raise a civil disputeare referred to the Dispute ResolutionTeam (DRT) who will try to assistthe consumer and lawyer to resolvethe dispute. The DRT may assist theparties resolve the dispute in one ormore of the following ways:• communicating offers of settlementbetween each party over thetelephone, by email, in writing,or in person• referring the dispute for formalmediation• in the case of a costs dispute,arranging for a non-bindingassessment of the costs, or• taking any other action the LSCconsiders necessary to assist theparties to reach agreement oran outcome that is acceptable toboth parties.The most common method forresolving civil disputes is throughdiscussions with the lawyer andconsumer over the phone, in personor by email. An important part of thedispute resolution process involvesmanaging the parties’ expectations.For example, if a consumer demandsan outcome that the LSC cannotprovide, then it is important that thisis clarified with the consumer in thefirst instance. It is important that theparties are given a realistic explanationof what can be achieved through thecomplaints process.In most cases, consumers willlodge civil disputes in relation to thelegal costs charged by their lawyer;however the underlying issues in thedisputes often relate to the qualityof legal services and advice given,particularly where the matter hasresulted in an unsatisfactory outcomefor the consumer. DRT staff musttherefore work with the parties toconsider and assess the issues in thedispute, perhaps refine them, and helpthe parties to reach a satisfactoryagreement. Where the lawyer andconsumer are unable to resolve thedispute with the assistance of theLSC, they may then apply to VCAT todetermine the dispute. Unlike the LSC,VCAT has the power to hear and make abinding decision about the dispute, andmake orders as to who should pay thecosts and how much money should bepaid. The LSC has no role before VCATwith respect to a civil dispute.Outcomes of civil complaintsThe LSC received 886 civil complaintsin 2011-12. Of the 892 civil complaintsthat were closed in the same period,the LSC had power to handle 664civil complaints. The remaining 228complaints, which were finalised, wereoutside of the LSC’s jurisdiction: forexample, the complaint was madeoutside of the required time limits; theconsumer failed to lodge costs withthe LSC; or, the lawyer had alreadycommenced legal proceedings torecover legal costs.Where the LSC had power to resolvethe dispute, the LSC helped the partiesresolve the dispute in 496 matters,compared with 473 in 2010-11. The LSCwas unable to settle the civil disputein 168 cases and therefore advised theparties of their right to apply to VCAT.One of the unique features of thecivil complaint handling processis that where a consumer makes acomplaint involving a costs dispute,that consumer must lodge the unpaidamount of legal costs with the LSCwithin 28 days of making the complaint.The LSC may determine that aconsumer need not lodge a disputedamount, or may lodge a lesser amount,if satisfied that lodging the costs wouldcause the consumer undue hardship.The LSC must dismiss a complaintif the consumer fails to comply withthese requirements. During theyear, the LSC received $710,119.48 indisputed costs. This money was held intrust pending settlement of the disputeor VCAT orders. This represents only aproportion of the total amount of costsin dispute, as costs may have alreadybeen paid to the lawyer or the LSC mayhave determined that the unpaid costsneed not be lodged.Figure 5 Outcomes of civil disputes where the LSC had jurisdiction to handle the disputeCivil dispute outcomes where the LSChad the jurisdiction to handle the disputE2009-10 2010-11 2011-12Dispute settled between lawyer and consumer 218 (78%) 473 (78%) 496 (75%)Dispute was unable to be settled and parties were advised of their right to apply to VCAT 60 (22%) 132 (22%) 168 (25%)Total 278 605 664**The increase in civil disputes is due to the increased classification of complaints as civil disputes as opposed to mixed complaints,where the focus is now on the primary issue of concern. See Figure 36 in Chapter 5 for further details about the outcomes of civil disputesLegal Services COMMISSIONER Annual Report 2012 9

CIVIL COMPLAINTScase studiesExamples of civil complaints handled by the Dispute Resolution TeamLawyer reduced bill to resolve complaintAnna and Gerald retained Carmel, a lawyer, to provide certification for their company, as trustee of their familytrust, to purchase a property on behalf of the trust.They provided Carmel with the trust deed and other documentation to review. After reviewing the documentation, Carmeladvised that she was legally unable to provide Anna with the specific certification requested and instead provided adifferent certification, which Anna claimed, was wrong. Carmel ceased acting for Anna and Gerald and sent them a billfor $1,500. Anna and Gerald retained a new lawyer and received the certification they requested for a third of the price.Anna made a complaint to the LSC. A member of the DRT contacted Carmel who denied that the advice had beenincorrect. Carmel stated that she was unable to give the certification requested because it appeared to her that stampduty had not been paid. She was unhappy that Anna had accused her of negligence and told the DRT officer that shewould not negotiate the bill.The DRT officer telephoned Anna and relayed Carmel’s response. Anna insisted that the stamp duty had been paidand Carmel did not wait until confirmation of this had been received. Anna offered to pay half of Carmel’s bill. The DRTofficer relayed this offer to Carmel and, after lengthy discussions, Carmel offered to reduce her bill to $1,200. Anna wasunwilling to accept her offer. The DRT officer advised Anna of her options to attempt to settle the dispute or apply to VCATfor resolution. Anna discussed the offer with Gerald, and a few days later, accepted the offer and resolved the dispute.Negotiated outcome resolved complaintTony was divorced from Brooke and was unhappy with the amount of time he was able to spend with their children.He was particularly concerned with an ongoing intervention order Brooke had taken out against him, and wantedto have it revoked.His new partner, Cassie, made an appointment for him to see a lawyer, Mario, the principal of a law firm. Mario providedhim with information regarding costs and asked him to pay $2,000 on account of future costs.When Brooke refused to let Tony see the children Tony rang Sandra, a lawyer assisting Mario with his matters,demanding that she do something. Tony said that despite ‘badgering Sandra for weeks’ to do something she had onlywritten one letter and she spoke to him in a demeaning manner. He decided to end his arrangement with the firm.Mario sent out two bills for the work done: one for the intervention order and one for the parenting arrangements. Whilecosts for the amount of time expended exceeded the $2,000 Tony had initially paid, Mario capped the bills at $2,000 andretained the moneys in trust as security for payment of the bills. Tony demanded that Mario refund to him the full amount,and when Mario refused, Tony complained to the LSC.Mario answered the complaint on behalf of Sandra. He stated that the work Sandra had done appeared to be entirelyappropriate, and that she had approached Brooke’s representatives with the aim of resolving the issues, as was required infamily law. He also stated that Sandra was only trying to help Tony to see other possible explanations for Brooke’s actions.Tony told the DRT officer at the LSC that he was unhappy with the service he had received. The DRT officer advised Tonythat he may wish to attempt to resolve the complaint through the costs dispute process. Mario recognised that this wasa difficult and emotional matter and although he was satisfied with the service Sandra had provided, he was willing torefund $250. Tony refused to accept his offer and instead made a counter offer of $1,000. After considering taking thedispute to VCAT, and after further discussions, the dispute was settled on the basis that Mario would refund $500 to Tony.10 Legal Services COMMISSIONER Annual Report 2012

Overcharging complaint resolved with the assistance of a file reviewGina had for some years been a partner in a women’s fashion store located in a shopping centre. She and herpartner decided to sell the business to a family acquaintance. Gina asked her solicitor, Peter, to review the contractand make arrangements for her to be released from her personal guarantee for the lease.Gina and her partner trusted the purchaser and were happy with the terms of the sale that they had agreed upon.Although Gina thought she had made it clear to Peter that he was not acting in the sale of the business itself, she felt thathe was getting too involved, particularly in the negotiations to transfer the lease to the purchaser.The costs quickly went beyond the initial estimate of $5,000, and soon Gina was given a bill for $7,000. At this point sheasked Peter to only maintain a ‘watching brief’ and not to do anything further without her instructions. He continued tobe copied into emails and from time to time, sent her emails requesting urgent instructions. Gina told him to wait for herinstructions, and when she did ask him to do something, he did far too much.In the end, the invoices amounted to around $13,000. Gina looked at the bills in detail and felt that he had only performedwork to the value of $10,000, and tried to negotiate this outcome. However, Peter would not agree and insisted that sheshould pay the full amount. Gina made a complaint to the LSC.A member of the DRT team contacted Gina to discuss her concerns. Gina felt very strongly that Peter had ‘overcharged’her and that she had been charged more than was necessary. When the DRT officer contacted Peter, he explained thatGina had underestimated the complexity of the issues in the sale. He maintained that he had obtained a very good result forher, and had protected her interests appropriately. After numerous discussions, it became clear that the issue in disputewas really the value of the work Peter had done for Gina. Peter offered to make an appointment for him to go through thefile with Gina, which she accepted. The parties were able to settle their dispute and Peter reduced his bill by $750.Complaints about service related issues or conduct that is of a kind more suitedto a mediated outcome.Complaints that raise service relatedconcerns and conduct issues arereferred to the Rapid ResolutionTeam (RRT) who will try to resolve thecomplaints through informal disputeresolution. Service related complaints,in most cases, may not warrant theLSC conducting a formal investigation.While the complaints may be complex,the RRT seeks to assist the parties toreach a practical outcome. In thesecircumstances, and only where theLSC believes it is appropriate to do so,a mediated outcome is sought. Therole of the RRT is to assist the lawyerand consumer to reach a satisfactoryagreement. Upon receiving a complaint,RRT staff will contact the consumerand lawyer to discuss the matter, andin particular, the outcome that theyhope to achieve. Managing the parties’expectations is paramount to resolvingservice related complaints. A uniquefeature of the RRT is its staff, all of whomare senior lawyers, each with over 20years’ legal experience. Their experienceenables them to identify how problemshave occurred between the lawyer andconsumer and provide guidance to helpthe parties resolve the dispute.Legal Services COMMISSIONER Annual Report 2012 11

service related COMPLAINTScase studiesExamples of service related complaints handled by the Rapid Resolution TeamVisiting the lawyer proved worthwhileGreg wanted to sell his family home and knew that the certificate of title had been held by his family’s elderlylong term solicitor, Michael.Jenny, his new lawyer, had attempted to contact Michael on a number of occasions without success. She contacted theLSC for assistance. A RRT officer also tried to contact Michael, again with no success. The RRT officer made enquiriesof the Legal Services Board and confirmed that Michael was still in practice. The RRT officer eventually drove out toMichael’s premises, a home office, and found noone home. Michael’s neighbours advised that he would be returningfrom an overseas trip in about 10 days’ time. The RRT officer left a note under Michael’s door asking him to make urgentcontact. On Michael’s return, he called the RRT officer and made immediate arrangements to transfer the certificateof title to Jenny, who then withdrew the complaint. Michael also apologised to Greg and Jenny. Notwithstanding that hispractice is now very small, Michael acknowledged that he should make proper arrangements for issues that may arisewhen he is away, and accepted the RRT officer’s advice in that regard.Complaint withdrawn after successful negotiationsHelen divorced Jeff some years ago. Her lawyer, Phillip, drew up a binding financial agreement which included aclause about the payment of child support, particularly providing for an adjustment of the amount payable if Jeff’sincome falls below a certain level.Helen felt the clause was poorly drafted, and the Child Support Agency (CSA) staff agreed with this view. Helen claimedshe was denied child support to which she was entitled for some 18 months. She complained to the LSC, stating thatshe had asked Phillip to rectify the situation but he had failed to do so. She felt she had lost $15,000 in child supportentitlements because of poor drafting of the agreement and held Phillip responsible.A RRT officer contacted Phillip to get a copy of the clause in question and to seek his response. Phillip stated that theCSA were in the process of reviewing the arrangement. He did, however, acknowledge that the drafting of the clause hadcaused problems and offered to write-off the balance of Helen’s fees, which had been outstanding for some time, andamounted to $2,000. He also offered an apology to her. Helen accepted this resolution and withdrew her complaint.12 Legal Services COMMISSIONER Annual Report 2012

An explanation and apology resolved the complaintAngela’s brother John suffered a brain injury many years ago which left him with communication difficulties andsome intellectual impairment.After being hospitalised, Angela decided that it would be in John’s best interests for him to appoint her as his enduringattorney for the purposes of medical treatment and looking after his finances. John understood that Angela would makedecisions for him if he was not able to do so. They made an appointment to see Bruce, a lawyer at a legal centre, to assistthem in drawing up the powers of attorney.Unfortunately there was some confusion with appointment times, which meant that twice they turned up with noappointment having been recorded. Angela was very frustrated with this and expressed her concern with the legalcentre’s support staff.When they did eventually see Bruce, he asked to see John alone so he could verify John’s capacity to appoint Angelaas his enduring attorney. John was frightened and confused and would not speak. Bruce formed the view that Johndid not have capacity and refused to draw up the documents. A few days later, Angela sent to Bruce a certificate fromJohn’s doctor, which confirmed the nature of John’s disability and capacity. However, Bruce had gone on extended leaveand did not respond. Angela was extremely angry and complained to the LSC about the way she and her brother hadbeen treated.A RRT officer discussed the complaint with Angela. The RRT officer explained to Angela that while she could see howoffended and upset she was, Bruce had actually been right to see John by himself, as some people do take advantage ofvulnerable relatives and friends. Although the RRT officer discussed with Angela other options available to her, Angelasaid she wanted to go back to the legal centre to get the documents drawn up and she wanted an apology, noting thatBruce could still refuse if he wasn’t sure John had capacity. The RRT officer offered to contact Bruce to get his version ofevents and see if the issue could be resolved.When contacted, Bruce said that his staff had confirmed there was an issue with their appointment system, and that theywere upset by how Angela had spoken to them. He confirmed that he was not at all concerned with Angela’s motives orhonesty towards her brother. He sent a letter explaining what had happened, which was passed on to Angela, togetherwith an offer to continue to assist her and John.Angela was not happy that the letter did not acknowledge how upset she was, but was willing to discuss her concernsdirectly with Bruce. Bruce subsequently called Angela, apologised and offered to help her and John. A satisfactoryresolution was reached and Angela withdrew her complaint. The LSC also provided some advice to Bruce aroundimprovements regarding the appointment system employed by the legal centre.Legal Services COMMISSIONER Annual Report 2012 13

Disciplinary complaintsComplaints that raise allegations aboutthe professional conduct of a lawyerand are of a character that do not seemcapable or appropriate for negotiatedresolution are referred to thecomplaint handlers for investigation.The purpose of an investigation isto determine whether a lawyer hasengaged in professional misconduct orunsatisfactory professional conduct.Upon receiving a complaint, thecomplaint handlers determine thescope of the problem and extent of theinvestigation. An investigations planis formalised and discussed, whichoutlines the steps that are to be taken.This plan is revised as the investigationprogresses. The complaint handlersuse a number of techniques forinvestigating complaints, including:• reviewing the legal file or relateddocuments• interviewing the consumer,lawyer and other witnesses• seeking a written explanation fromthe lawyer in response to the issuesraised in the complaint• visiting the lawyer’s office to identifypotential problems in the legalpractice• obtaining copies of documents fromcourts or tribunals• conducting searches of the LandTitles Office, company records,electoral register and other sources• attending court or tribunal on relatedmatters, and• seeking information from otherlegal regulators, for example theLSB and LIV.From the evidence gathered, thecomplaint handlers may determinethat the lawyer has not engaged inconduct that amounts to a disciplinarybreach. Where this occurs, thecomplaint handlers will advise theconsumer of the outcome and mayalso provide guidance to the lawyerto help them improve their practicesand avoid further problems fromoccurring. Where the complainthandlers determine that a disciplinarybreach has occurred, then the matterwill be referred to the Commissionerwho will decide whether the conductamounts to unsatisfactory professionalconduct or professional misconduct.If the Commissioner determines thatthe conduct amounts to professionalmisconduct, then the LSC will make anapplication to VCAT. For unsatisfactoryprofessional conduct matters, theCommissioner may apply to VCAT foran order against the lawyer or mayinstead take an alternative disciplinaryaction against the lawyerThe LSC commenced 236investigations in the reporting year,compared with 449 in 2010-11 and 749in 2010-09. This decrease is due toa change in the way complaints arehandled by the LSC. Previously, theLSC formally investigated complaintsthat contained service relatedissues. In many of these cases, thealleged conduct would not amountto a disciplinary breach and wouldoften result in the complaint beingdismissed by the LSC, or would beformally investigated when this wasunsuitable. These complaints are nowreferred to the RRT for resolution.Now, the LSC only launches a formalinvestigation where it is evident that thecomplaint raises allegations of seriousdisciplinary breaches.Merging of the InvestigationsTeam and Litigation TeamIn the 2010-11 reporting period, theLSC established an InvestigationsTeam to help streamline theinvestigations process across theoffice, and a specialist LitigationTeam allowing for a more focusedand consistent approach whenfinalising investigations likely toresult in a prosecution. The creationof these specialist investigationand litigation teams proved to bea successful initiative in 2010-11and was a contributing factor to theoffice achieving a reduction in thenumber of outstanding complaintsand finalising disciplinary mattersin a timely manner. However, itbecame evident that specialisedteams restricted the diversity of workundertaken by individual complainthandlers and confined the expertise toselect individuals. The Commissionerfelt there was a need for individualcomplaint handlers to be involved inany litigation that was commencedfollowing the investigation of adisciplinary complaint. Accordingly,during 2011-12, the InvestigationsTeam and Litigation Team weremerged to form two Complaintsand Investigations Teams, whichare comprised of staff who areskilled to deal with both investigationsand any litigation arising froma disciplinary complaint.Activities of the Complaintsand Investigations TeamsDuring the reporting period, staff in theComplaints and Investigations Teamscontinued to meet with consumers andpractitioners to better understand thepositions of the parties and thereforebetter exercise their regulatory andeducative roles. As the file loads ofcomplaint handlers have reduced it hasmeant that although these teams nowdeal primarily with the more seriousdisciplinary complaints, they are ableto spend more time meeting withconsumers, legal practitioners, otherwitnesses concerned, as well as othergovernment bodies some of whomhave overlapping responsibilities; forexample, Victoria police and interstateregulators. Staff in the Complaints andInvestigations Teams regard the linksformed with other regulatory bodiesas invaluable.14 Legal Services COMMISSIONER Annual Report 2012

The Complaints and InvestigationsTeams recruited a number of staffwho are not legal practitioners butwho have extensive experience inother fields, such as experience inthe Australian Taxation Office andthe Federal Police. This enhancesthe breadth of experience of theteams as a whole. Staff have alsobeen dealing with more telephoneenquiries which often provide a morecomprehensive and timely servicethan formal correspondence.New Investigations andRegulation Team in theRegulation and Complaints UnitThe Commissioner implemented arestructure in the reporting periodto align the LSC and LSB with thestructure of the proposed nationallaw. This resulted in the establishmentof a new team in the Complaints andInvestigations Unit of the LSC, knownas the Investigations and RegulationTeam. This team is responsible forcarrying out work under the regulatorypowers of the LSB such as breachesof the Act, regulations and rules, andworking with the staff of the LIV andBar, who deal with non-compliancematters as delegates of the LSB.These functions were previouslyperformed by the Legal and PolicyTeam, which was disbanded throughthe restructure process. Most noncompliancematters overlap withor relate to the LSC’s complaintshandling function. It therefore seemedappropriate to position this team withinthe Complaints and InvestigationsUnit of the LSC. This placementhas enhanced the ability of LSB andLSC staff to carry out a coordinatedapproach in respect of a numberof matters involving IncorporatedLegal Practices (ILPs) and individuallawyers. The case of LSC v DanielOldham (see case study on page 22)is an example of a combined approachwhich led to a single joint hearing,where staff from both the LSC andLSB also worked with staff from theLIV in preparing and presenting thecase. This new initiative has enabledinvestigations and litigation to beconducted efficiently and ensure themost appropriate action is taken inanygiven matter, taking into accountthe wide range of regulatory powers.The activities of the Investigations andRegulation Team is summarised in the2011-12 Annual Report of the LegalServices Board, which is available on theBoard’s website at www.lsb.vic.gov.auDisciplinary complaint outcomesIn 2011-12, the LSC formed theview that VCAT was likely to find thelawyer guilty of a disciplinary breachin 117 matters. In 164 cases, theLSC formed the view that VCAT wasunlikely to find the lawyer guilty of adisciplinary breach. In 366 matters,the consumer was satisfied with thelawyer’s explanation and withdrewthe complaint. This is compared with333 in 2010-11 and 211 in 2010-09.This increase is due to the efforts of theRRT where if the consumer is satisfiedwith the outcome of the matter, whichin most cases has been achievedwith the assistance of RRT staff, thenthey may choose to not pursue theircomplaint further against the lawyer.Where this outcome is not achieved,or in other specific situations, theLSC may however form the view thatno further investigation is required.This was the case in 193 matterscompared with 172 in 2010-11.Figure 6 shows the outcomes ofdisciplinary complaints for 2011-12and previous years.Figure 6 Disciplinary complaint outcomesDisciplinary complaint outcomes 2009-10 2010-11 2011-12LSC formed view that VCAT likely to find lawyer guilty of a disciplinary breach 64 (7%) 152 (11%) 117 (9%)LSC formed view that VCAT unlikely to find lawyer guilty of a disciplinary breach 254 (28%) 338 (26%) 164 (13%)Lawyer Struck Off – not in the public interest (no further action) s4.4.12B N/A N/A 22 (2%)Complainant satisfied with lawyer’s explanation & withdrew complaint 211 (23%) 333 (25%) 366 (29%)Complaint made out of time 5 (0.5%) 14 (1%) 18 (2%)Complaint made before (or subject of another complaint) 18 (2%) 15 (1%) 13 (1%)Complainant failed to provide further information when requested 75 (8%) 48 (4%) 30 (3%)Complaint lacked legal substance etc (eg. alleged conduct was not inappropriate) 104 (11%) 157 (12%) 165 (13%)Complaint about lawyer/client relationship and duties but made by third party(eg. not the client)LSC formed the view that complaint required no further investigation (eg. lawyernot obliged to accept instructions from complainant)Complaint not one that the LSC has power to deal with(eg. involves question of law and therefore should be dealt with by a court)26 (3%) 36 (3%) 51 (4%)67 (7%) 172 (13%) 193 (16%)89 (10%) 47 (4%) 68 (6%)Lawyer deceased 2 (0.2%) 1 (0.1%) 0Lawyer ill health or not located 8 (1%) 2 (0.2%) 2 (0.2%)Closed due to ongoing proceedings N/A 7 (0.5%) 20 (2%)Total 923 1,322 1,229* Please note that withdrawing a complaint is seen by the LSC as a perfectly valid means of concluding a complaint if the consumer is satisfied withthe outcome and if the LSC accepts that a fair and practical result was achieved.Legal Services COMMISSIONER Annual Report 2012 15

Referral of an investigation to a Prescribed Investigatory BodyThe LSC may undertake a disciplinaryinvestigation or can instead referthe investigation to a PrescribedInvestigatory Body (PIB), whichcurrently means either the LIV or theBar. Where this occurs, the PIBs mustreport their findings to the LSC.Decisions following an investigation areto be made by the LSC. During the year,the LSC referred approximately 40%of the total number of investigationsto the PIBs for investigation. This isshown in Figure 7.Figure 7 Investigations commenced by the LSC and referred to PIBsInvestigations 2009-10 2010-11 2011-12Investigations by LSC 581 333 140*Investigations referred to PIBs 168 116 96**Total Investigations 749 449 236* The decrease in the number of ‘investigations’ is as a result of the way in which new complaints are now assessed and allocated.See Figures 29 and 30 in Chapter 5 for further details about investigations.** This figure does not include an additional 97 costs disputes referred to the PIBs during the 2011-12 year, as also occurred in previous years.16 Legal Services COMMISSIONER Annual Report 2012

Alternative disciplinary actionsWhere the LSC determines thatVCAT is likely to find a lawyer guiltyof unsatisfactory professionalconduct, the LSC may apply to VCATfor an order against the lawyer or mayinstead take an alternative disciplinaryaction against the lawyer. The decisionto take an alternative disciplinaryaction may be based on a numberof factors, including:• the lawyer’s circumstances,including the lawyer’s health,age, years of experience, andfinancial situation• whether the lawyer acknowledgeshis or her error and/or has shownremorse• whether the lawyer made a mistakeand is unlikely to repeat the conduct• whether the lawyer cooperatedduring the investigation, and• whether the conduct is systemicin nature, and affects, or has thepotential to affect, a class of persons.Alternative disciplinary actions include:• with the consent of the lawyer,reprimand the lawyer• with the consent of the lawyer,caution the lawyer• take no further action against thelawyer if satisfied that –−−the lawyer is generally competentand diligent, and−−there has been no substantiatedcomplaint (other than thecomplaint that led to theinvestigation) about the conductof the lawyer within the last fiveyears, orThese alternative disciplinary actionsare not available where the LSCdetermines that VCAT is likely tofind a lawyer guilty of professionalmisconduct. Where this occurs,the LSC must apply to VCAT for anorder against the lawyer. The LSCtook alternative disciplinary action in84 cases in 2011-12 compared with129 in the previous year. In a majorityof the cases, the LSC reprimandedthe lawyer.Figure 8 shows the number and type ofalternative disciplinary actions taken bythe LSC in 2011-12.Figure 8 Alternative disciplinary actions taken by the LSCAlternative Disciplinary Action 2009-10 2010-11 2011-12LSC reprimanded lawyer 30 67 57LSC cautioned lawyer 9 9 6Lawyer found generally competent anddiligent and so no further action27 44 14Lawyer pays compensation asa condition of LSC not making adisciplinary application to VCAT2 9 7Total 68 129 84Publication of VCAT and Courtdecisions on the LSC websiteAs part of the LSC’s statutory objectiveto educate the legal profession aboutissues of concern to the profession andto consumers of legal services, theLSC has taken the initiative to publishVCAT and court decisions involvingthe LSC on its website. The cases arepublished on the website to highlightthe dangers and consequenceslawyers face when engaging in certaintypes of conduct. They serve as atimely reminder to lawyers to ensurethat they act in accordance withapplicable legislation, regulationsand rules, and seek out assistancefrom colleagues and the professionalassociations when issues of concernarise. Issues highlighted includedensuring compliance with practisingcertificate obligations, not undertakinglegal work in areas of law with limitedknowledge and experience withoutassistance, and seeking assistance ifexperiencing financial difficulties.• where the consumer has requesteda compensation order, require thelawyer to pay compensation to theconsumer as a condition of decidingnot to apply to VCAT in respect ofthe lawyer.20 Legal Services COMMISSIONER Annual Report 2012

VCAT decisionsin mattersinvolving the LSCLegal Services Commissioner v Coldham & Ors (Legal practice) [2012]VCAT 74 (19 January 2012)On 18 June 2007, the LSB appointed trust account inspectors to commence a routine investigation into the trustaccount of and records relating to trust money received by a law firm of which Michael Coldham, Donald Brookesand Philip Barton were equity partners.The investigation uncovered unpresented office cheques totalling $541,690. A majority of those cheques related to fundsreceived from clients on account of unpaid disbursements owed to barristers and expert witnesses. At the time of theinvestigation the firm had 216 unsent office cheques in its possession totalling $305,791.97. It was within the knowledgeof the lawyers that unsent cheques had been retained by the firm’s accounting staff, and had deliberately not been sent ordelivered to the payee.Following accounts rendered to clients, the majority of payments made to the firm were first deposited into the firm’strust account and subsequently transferred into the firm’s office account. In all other cases the payments were madedirectly into the firm’s office account. At this time the disbursements owing had not been paid by the firm. Cheques weresubsequently drawn in respect of disbursements for third party service providers and retained and applied by the firm toreduce the level of debt of the firm’s overdraft account.The LSC brought two charges of professional misconduct at common law against the three lawyers, to which they allentered guilty pleas.The lawyers and the LSC agreed that the charges did not allege that the funds were trust moneys or that there was abreach of fiduciary duty. The LSC also conceded that the relevant third party service providers were engaged directly bythe firm and there were no contractual obligations between the clients and the service providers. The proceedings weredetermined by VCAT without consideration of these issues.At the hearing, Counsel for the LSC noted that ‘in some cases the unsent cheques became stale and were reissued bythe firm, but were nevertheless retained by the firm’ Counsel highlighted the respondents’ deferred decision to plead tothe present charges, the length of 30 years experience of all three respondents and the conduct amounting to a longtermstrategy.Counsel on behalf of the lawyers said their clients recognised the wrongfulness of their actions but stressed that theirpleas did not involve a breach of rules in relation to trust accounts or breach of fiduciary duty. They submitted that theLSC’s references to various court and VCAT decisions were not directly applicable to the case at hand. Counsel alsonoted that the delay in bringing this case before VCAT by the LSC should weigh in favour of a more lenient outcome.They said that the delay prevented the partners from taking action to improve the financial situation of the firm. Counselprovided accounting evidence that the firm’s current financial situation was such that if VCAT were to make the orderssought by the LSC the firm would be out of business.VCAT noted that the lawyers had engaged in disgraceful and dishonourable conduct, which should not be reduced inseverity just because the conduct was not found to involve a breach of the trust account rules or fiduciary duty. VCATfound that based on the long period of retention of the cheques, the money was considered to be detained indefinitely bythe firm. It was noted that it was an almost academic distinction to speak of funds being merely obtained as opposed tobeing finally misappropriated.VCAT found it difficult to consider the firm’s financial circumstances as a mitigating factor but acknowledged the direconsequences of ordering the suspension of the respondents’ practising certificates. They noted that ‘in our view itcannot balance out the necessity to impose a relatively severe penalty to send an unmistakable message to the State’slegal profession that this sort of conduct will not be tolerated’.VCAT ordered that the practising certificate of each respondent was to be suspended for a period of nine months andthe respondents were to pay the LSC’s costs of $50,000.Legal Services COMMISSIONER Annual Report 2012 21

Oldham v Law Institute of Victoria (Legal Practice) [2012]VCAT 571 (30 May 2012)VCAT ordered on 30 May 2012 that Melbourne lawyer Daniel Oldham be reprimanded and restricted to practisingonly in specific areas of the law following charges brought against him by the LSC.The LSC brought charges of professional misconduct against Mr Oldham for issuing and maintaining legal proceedingsin relation to two separate bushfire class actions without obtaining the appropriate authority or instructions from thenominated clients. Mr Oldham pleaded guilty to the charges.Mr Oldham issued legal proceedings in the Supreme Court of Victoria in December 2008 for a class action in relation tothe Alpine Bushfires, and in February 2009 issued separate legal proceedings for a class action in relation to the BlackSaturday Bushfires. On both occasions, Mr Oldham listed the names of individual clients as the lead plaintiffs withouttheir prior knowledge or consent.When the client in the Alpine Bushfires class action learnt that he had been listed as the lead plaintiff, he requested thathis name be removed as lead plaintiff. Mr Oldham failed to remove the client’s name immediately – and even then forsome three months – when asked to do so. Mr Oldham also caused costs to be ordered against the lead plaintiff in theBlack Saturday Bushfires class action as a result of Mr Oldham not knowing the obligations on the lead plaintiff under theSupreme Court Act 1986.For a period of two years, Mr Oldham can only practice in the areas of building law, construction law, property law andowners corporation law. He was also ordered to pay the amount of $30,000 towards the LSC’s costs of the proceedings.Legal Services Commissioner v Spicehandler (Legal Practice) [2012]VCAT 630 (14 May 2012)The LSC brought three charges of professional misconduct against Mark Spicehandler for submitting a falseresume in order to obtain employment at the Office of Public Prosecutions (OPP) and for engaging in legal practicewithout a practising certificate.Mr Spicehandler was admitted to practice in 2004. He held a practising certificate between June 2006 and June 2008.Mr Spicehandler applied for and successfully obtained the position of senior solicitor with the OPP in June 2010. Hecommenced employment with the OPP in August 2010. In his resume that he submitted to the OPP for the position,Mr Spicehandler claimed that he had only been employed by one company, King Logistics, since 2004. In fact, MrSpicehandler had never been employed by this company; rather, he had been employed by five separate law firmsbetween 2004 and 2008. Mr Spicehandler failed to disclose these details on his resume.Before commencing his new role with the OPP, Mr Spicehandler was asked by the OPP to complete a personal detailsform. One of the questions on this form required him to disclose whether he had been charged or convicted of an offence,to which he answered ‘No’. In fact in 2009, Mr Spicehandler was charged with using a carriage of service to menace bysending threatening text messages to a person at one of his former places of employment.Counsel for the LSC submitted to VCAT that Mr Spicehandler’s conduct in providing false information in his resume wasclearly inconsistent with the lawyer’s fundamental duty of honesty. Counsel also submitted that Mr Spicehandler hadcontravened the Legal Profession Act 2004 by engaging in legal practice without a practising certificate, which can carrya penalty under the Act of two years imprisonment.In his submission to VCAT, Mr Spicehandler claimed that he fabricated his resume because he was “very keen to obtainemployment at the OPP”. In relation to denying on the form that he had been charged with an offence, Mr Spicehandlersaid he “misinterpreted” the form. VCAT agreed that Mr Spicehandler’s conduct was inconsistent with the legalpractitioner’s duty of honesty and candour and said “the omissions and fabrications on the resume he submitted to theOPP were blatant, breathtaking lies”. VCAT also did not accept his explanation that he misinterpreted the form. VCAT said“the non-disclosure of being charged with an offence would be reasonably regarded as disgraceful and dishonourable byprofessional colleagues of good repute and competency. It is trite that lawyers must be honest above all else.”VCAT ordered that Mr Spicehandler be reprimanded and not be granted a practising certificate before 27 April 2017.He was also ordered to pay the LSC’s costs of $5,935.90.22 Legal Services COMMISSIONER Annual Report 2012

Finalised complaintsThe LSC finalised 2,304 complaints in2011-12, which included complaintsreceived in previous years. Althoughthe LSC finalised slightly lesscomplaints this year compared withthe previous year, there continues tobe a significant increase in finalisedcomplaints compared with 2009-10.This is due to a number of initiativesintroduced by the LSC to minimisedelays and reduce the number ofoutstanding complaints, such asthe establishment of the RRT. Theintroduction of the RRT process alsoled to a dramatic reduction in the fileloads of complaint handlers, whichenabled staff to devote more time tofinalising outstanding complaints andinvestigating more serious complaints.Figure 9 shows the number ofcomplaints finalised in 2011-12 bycomplaint type.Figure 9 Finalised complaintsYear Civil Disciplinary Mixed (Civil & Disciplinary) Total2011-12 892 (38%) 1,229 (54%) 183 (8%) 2,3042010-11 836 (32%) 1,322 (51%) 451 (17%) 2,6092009-10 455 (26%) 923 (51%) 418 (23%) 1,796Time taken to finalise complaintsFigure 10 shows the time takento resolve complaints in 2011-12compared with the time taken inprevious years. The LSC closed 563complaints within a 30 day periodcompared with 505 in 2010-11.The LSC finalised 671 complaintswithin a 31-90 day period. Less thanhalf of the complaints were finalisedwithin a period of 120 days or more.Figure 10 Time taken to finalise complaintsDays since receipt of complaint

Complaints outstandingThere were 571 outstanding complaintsas at 30 June 2012 compared with 848in 2010-11. This means the numberof outstanding complaints at the endof the reporting year decreased by33% compared with the previous year.A total of 226 complaints had beenunresolved for a period of 120 days ormore, compared with 490 at 30 June2011 and 1,003 in 2009-10.Figure 11 shows the number ofcomplaints outstanding as at 30 June2012 by complaint type.Figure 11 Number of complaints outstandingDays since receipt of complaint

Educating the legal professionand consumers of legal servicesAs previously stated, two of the LSC’s statutory objectives are to:• educate the legal profession about issues of concern to theprofession and to consumers of legal services, and• educate the community about legal issues and the rightsand obligations that flow from the client-lawyer relationship.The LSC meets and delivers uponthese objectives through its Educationand Outreach Program. The LSCeducates, and engages with, membersof the legal profession and a diverserange of consumers of legal services,in both rural and metropolitan areasof Victoria.Educating the legalprofessionThe LSC engages with and providesfeedback to members of the legalprofession, other legal professionals,law students and trainee lawyersthrough a variety of means includingethics workshops, seminars andconferences. During the yearthe LSC delivered 30 seminars,conference papers and facilitatedworkshops to more than 1,600 lawyersacross metropolitan Melbourne andregional Victoria.Seminars and ConferencesThe LSC also engages with the legalprofession through seminar andconference presentations. During theyear several topics were discussed,including:• complaint handling processesand alternative dispute resolutiontechniques• the proposed national legalprofession reforms• mental health disclosurerequirements• online renewal of practisingcertificates• consumer concerns with solicitorexecutors• trends in complaints about lawyers,and how to avoid them, and• ethical issues for in-house andcorporate lawyers.The presentations were made to adiverse range of legal professionals,including:• lawyers from Melbourne-based lawfirms• members of suburban and regionallaw associations• audiences attending commercialprofessional development seminars• lawyers from both State andCommonwealth Governmentorganisations• audiences attending events held bythe LIV• barristers attending seminars heldby the Bar• an informal association of businesslawyers• members of the AustralianCorporate Lawyers’ Association, and• barristers attending the Greens ListBarristers Breakfast Series.Ethics workshopsThe LSC conducts ethics workshopswhich aim to educate lawyersabout ethical conduct and theirprofessional responsibilities.The workshops present lawyers witha range of scenarios that they mayencounter in everyday legal practice.The participants discuss and considerthe appropriate course of action.The scenarios are based on commonissues which feature in complaintsto the LSC and issues identifiedthrough discussions with communitysupport groups.LSC staff guide the discussions andadvise the workshop participants onthe appropriate responses in eachscenario. Lawyers can claim theseworkshops as continuing professionaldevelopment units. During theyear, the LSC delivered two ethicsworkshops for the legal profession.The reduced amount of ethicsworkshops conducted this year is dueto the increased amount of requests forseminar and conference presentationsto legal professionals.University students andtrainee lawyersThe LSC presents to undergraduateand postgraduate students enrolled inlaw courses at Victorian universities.In 2011-12, the LSC delivered 10presentations to over 600 law andlegal studies students across fiveinstitutions – Monash University,Deakin University, La Trobe University,Victoria University and the Universityof Melbourne.The presentations covered topicsrelevant to both the LSC and theLSB, including the structure of thelegal profession regulatory regime,common complaint issues, disclosureof mental health issues, admissionrequirements, regulation of foreignlawyers, and practising law in thepublic sector.LSC staff also presented to legalpractice trainees and mentordiscussion groups through the LeoCussen Centre for Law. A furtherpresentation was made to a group oftrainee youth counsellors through theAustralian College of Youth Training,which focussed on the rights of youngpeople when working with lawyers,and where to locate legal informationand resources in Victoria.Legal Services COMMISSIONER Annual Report 2012 25

Educating consumers of legal servicesThe LSC is responsible for ensuringconsumers of legal services are awareof their rights and responsibilitieswhen working with lawyers, andraising awareness of the complainthandling regime among the Victoriancommunity. The LSC conducts anOutreach Program throughoutmetropolitan Melbourne and regionalVictoria to disseminate informationto consumers.During the year, the LSC conductedseven outreach visits across Victoria.Four visits were made to areas withinmetropolitan Melbourne (St Albans/Sunshine, Cranbourne, Narre Warren,and Glen Waverley) and three visits toregional Victoria (Wangaratta, BacchusMarsh and Castlemaine).Figure 12 shows the townships andsuburbs which the LSC’s OutreachProgram has visited in recent years.Figure 12 Outreach visits conducted by the lscMilduraTowns andsuburbs visited2011–122010–112009–10Swan HillBendigoEchucaSheppartonWangarattaPortlandMaryborough CastlemaineKynetonSeymourSunburyBacchus MarshBroadmeadowsSunshineGreensboroughSt AlbansRingwoodHamiltonCoburgGlen KnoxWerribee Waverley Narre WarrenCranbourneCamperdownPakenhamColacMornington WarragulWarrnamboolWonthaggi26 Legal Services COMMISSIONER Annual Report 2012

Engagement withcommunity groupsConsumers will often turn tocommunity support services andinformation networks when in needof assistance, for example, whenthings go wrong with their lawyer.Accordingly, the LSC engages directlywith a cross-section of communitygroups, including those that offerservices in the following areas:counselling, crisis relief, disability,mental health, multicultural,indigenous, youth, and the aged andfamily support.The LSC distributes information tocommunity groups about consumers’rights and responsibilities whenengaging a lawyer and the process formaking a complaint with the LSC.In 2011-12, the LSC met with 65organisations, including:• Sorrento Ladies Probus Group• Court Network Central Victoria• St Lukes Anglicare ConsumerSupport Program, Castlemaine• Maldon Neighbourhood House• St Albans Community Youth Club andNeighbourhood House• Macedonian Community WelfareAssociation• Brimbank Youth Services• Fronditha Care (Greek community)• WAYSS, Narre Warren• Connections UnitingCare,Cranbourne• Casey North Community Informationand Support Service• Upper Murray Family Care• Women’s Health GoulburnNorth East• North East Support and Actionfor Youth• Disability Advocacy andInformation Service• Wangaratta CommunityMental Health• Victorian Mental IllnessAwareness Council, and• Child and Family Services,Bacchus Marsh.Feedback on the relationshipbetween lawyers and consumersThe LSC also seeks feedback fromcommunity groups, both positiveand negative, on the relationshipbetween consumers and lawyers.This information assists the LSC toidentify emerging issues and keytrends occurring in the lawyerclientrelationship. It also influencesthe LSC’s education activities andmessages communicated throughethics workshops and seminarpresentations.The following list is a sample of issuesthat were identified during discussionswith community support services in2011-12:• communication with consumersis often not managed effectively,leading to a poor understanding ofcourt processes• the technical language used bylawyers is often misunderstood byconsumers• billing and costing arrangements,such as no-win no-feearrangements, are often poorlyunderstood by consumers• the use of independent interpretersis sometimes overlooked in favourof using a friend or family member,which may raise concerns regardingthe best interests of the client• lawyers may not understand or makeallowances for clients who are incrisis situations, especially wherethe client may have mental healthissues contributing to their legalmatter• support workers may be excludedfrom meetings held between theclient and the lawyer, which limitsthe support available to the clientonce the meeting has concluded, and• more careful communication isrequired for clients with a disability,mental health condition, sufferingstress, who have poor English orlittle formal education.Engagement withMembers of ParliamentAs part of the Education and OutreachProgram, the LSC visits the electorateoffices of Members of Parliament(MPs) and provides information aboutthe role of the LSC and the complainthandling process for their constituents.During the year, the LSC visited 11 stateand federal MPs’ electorate offices.LSC staff explained the role of the LSCto electorate officers and providedbrochures and other publications thatcan be made available to constituentswho enquire about lawyer-clientrelated issues.Community advocateorganisationsCommunity legal centres andspecialist legal services providefree and low cost legal services toconsumers and advocate for therights of the community. The LSCendeavours to maintain a strongrelationship with these organisationsthrough the Education and OutreachProgram. In 2011-12 the LSC met withrepresentatives from the following 12organisations:Community legal centres:• Broadmeadows Community LegalService• Fitzroy Legal Service• Hume Riverina Community LegalService• Moonee Valley Legal Service• North Melbourne Legal Service, and• Peninsula Community Legal Centre.Specialist legal services:• Domestic Violence Resource Centre• Family Mediation CentreNarre Warren• Seniors Rights Victoria• Social Security Rights Victoria• Victorian Aboriginal Legal Service,and• Youthlaw.Legal Services COMMISSIONER Annual Report 2012 27

chapter 02human resourcesOrganisational structureof the LSC and LSBThe Act prescribes that the LSC isthe employer of staff for both theLSC and the LSB. As previouslystated, the Commissioner, MichaelMcGarvie, is also the CEO of the LSB.The organisational structure of theLSC and the LSB as at 30 June 2012is shown below in Figure 13. Staffare employed under Part 3 of thePublic Administration Act 2004.Organisational restructureThe LSC underwent a restructurein the reporting year, which resultedin the organisation being reducedfrom three operational areas to two.This new structure is closely alignedwith the proposed structure of theimpending National Legal ProfessionReforms. As a result, there are nowtwo operational areas: Regulationand Complaints, and Corporate andGovernance. These two areas provideservices to both the LSB and LSC.LSC management liaised with theCommunity and Public Sector Union(CPSU) throughout the restructureprocess and staff and managers werealso invited to participate in focusgroups and feedback sessions inrelation to the proposed arrangements.No jobs were lost as a result of therestructure; for most staff, the changewas minimal. The implementation datewas 12 December 2011.Figure 13 Organisational structure and employment arrangements for the LSC and LSBManagerHuman ResourcesMichael McGarvieLegal Services CommissionerCEO, Legal Services BoardCommunicationsAdviserRussell Dailyexecutive DirectorREGULATION & COMPLAINTSJohn IresonExecutive DirectorCORPORATE & GOVERNANCEDirectorProfessional StandardsManagerComplaints & InvestigationsManagerInvestigations & RegulationManagerComplaints & ResolutionManagerAdministrative ServicesDirectorRegulatory Reform & PolicyGerneral CounselManagerGrantsManagerFinance & InvestmentManagerProjects & GovernanceManagerI.T.ManagerCorporate ServicesLegal Services COMMISSIONER Annual Report 2012 31

Workforce data andstaffing trendsThe following tables show theprofile of the workforce (headcount)employed by the LSC to perform LSCand LSB functions as at 30 June 2012.Figure 14 Five-year staffing trend (headcount)2008 2009 2010 2011 2012Total 63 63 77 83 76* Full time equivalent (FTE) numbers have been rounded to the nearest whole number. In somecolumns this rounding results in small inconsistencies between groupings. For example, therounding of FTE numbers to the nearest whole number has resulted in slight variances betweenFTE numbers and FTE numbers dissected by gender, age, and classification.Figure 15 Profile of ongoing, fixed term and casual employeesONGOING EMPLOYEESFIXED TERM & CASUALNumber(headcount)Fulltime(headcount)Part time(headcount)FTE* (rounded)FTE*(rounded)June 2012 74 64 10 73 2June 2011 69 57 12 69 14June 2010 66 54 10 61 11Figure 16 Employees of the Legal Services CommissionerGenderNumber(headcount)ONGOING30 JUNE 2011 30 JUNE 2012FTE*(rounded)FIXED TERM& CASUALFTE*(rounded)Number(headcount)ONGOINGFTE*(rounded)FIXED TERM& CASUALFTE*(rounded)Male1515925250Female5451549462Total 69 66 14 74 71 2AgeUnder 2525-3435-4445-5455-64Over 6412023196012022176023131411822191131172119113010010Total 69 66 14 74 71 2ClassificationVPS 1VPS 2VPS 3VPS 4VPS 5VPS 6STSExecutivesOther#0411122713101041112211312100334102004141422161210414142115121001100000Total 69 65 13 74 71 2#Employee reported as ‘Other’ is the Commissioner, Michael McGarvie, who is a statutory office holder.32 Legal Services COMMISSIONER Annual Report 2012

Executive officer dataAn executive officer is defined as aperson employed by a public servicebody head or other executive underPart 3, Division 5 of the PublicAdministration Act 2004. All figuresreflect employment levels as at 30June 2012. ‘Ongoing’ executives areexecutives who are responsible forfunctions or outputs that are expectedto be ongoing at the reporting date.As at 30 June 2012 there were novacant executive positions. Therewere no ‘Special Projects’ executivesemployed by the LSC during 2011-12.The following tables disclose detailsfor the executive officers employedby the LSC for 2011-12.Figure 17 Number of executive officers classified as ‘ongoing’Classification 2010-11 2011-12MALE FEMALE MALE FEMALEEO-1 0 0 0 0EO-2 1* 0 1* 0EO-3 2 0 2 0*This position is the Commissioner, Michael McGarvie, who is a statutory office holder.The number of executives in thisreport of operations is based onthe number of executive positionsthat are occupied at the end of thefinancial year. Note 19 in the FinancialReport lists the actual number ofand amount of remuneration paid toexecutive officers over the course ofthe reporting period. The FinancialReport Note 19 does not distinguishbetween executive levels, nor does itdisclose separations, vacant positionsor executives whose remuneration isbelow $100,000. Separations are thoseexecutives who received more than$100,000 in the financial year and haveleft the employment of the LSC duringthe year. To assist readers, these twodisclosures are reconciled below.Figure 18 Reconciliation of executive numbersCategory 2010-11 2011-12Add Executives with remuneration over $100,000 2 2Vacancies 0 0Executives employed with a total remuneration below$100,0000 0Accountable Officer (Commissioner) 1 1Less Separations 0 0Total executive numbers as at 30 June 3 3Performance, Planning and DevelopmentLSC staff completed their ProfessionalDevelopment Plans (PDPs) via theonline system that was implementedin the 2010-11 reporting year. Thisautomated performance managementprocess enables managers and staff todevelop their performance plans andcomplete their review online. HumanResources and Executive Managementreviewed the PDP process during thereporting period and subsequentlyadded staff rotations or activities thatstretch the experience and capacity ofstaff. This element was added to theperformance development process toprovide staff with the opportunity todevelop their skills in other areas ofthe organisation.An online module on bullying in theworkplace was implemented duringthe reporting year and was mandatoryas part of the staff learning anddevelopment requirements. Themodule aims to educate staff on howto identify conduct that may constitutebullying and outlines the LSC’sprocesses for dealing with complaintsconcerning this type of behaviour.Staff will be required to complete thebullying module on an annual basis.People Matter Survey 2012The LSC participated in the VictorianPublic Service People MatterSurvey, which measures employees’perceptions of the application of valuesand employment principles in theworkplace. Approximately 80% of staffcompleted the survey. The resultswill be analysed in the next reportingyear and will guide the LSC in makingimprovements in these areas.Legal Services COMMISSIONER Annual Report 2012 33

Employment andConduct PrinciplesThe LSC is committed to applying meritand equity principles when appointingstaff. The selection processes ensurethat applicants are assessed andevaluated fairly and equitably on the basisof the key selection criteria and otheraccountabilities without discrimination.There were 20 positions advertisedand selection was made applying meritand equity principles in line with thestandards set by the State ServicesAuthority. There were no selectiongrievances lodged this year.Public administrationvalues and employmentprinciplesThe Public Administration Act 2004abolished the Office of Commissionerfor Public Employment and establishedthe State Services Authority. The LSCcontinues to implement the previousdirections of the Commissioner forPublic Employment with respect toupholding public sector conduct,managing and valuing diversity,managing underperformance,reviewing personal grievancesand selecting on merit. TheLSC’s compliance with the publicadministration values and employmentprinciples was demonstrated by activeparticipation in the People MatterSurvey in April 2012 and follow upaction including refresher informationsessions for all staff on Human Rights.In addition, information relating tosexual harassment and discriminationis provided to new staff as part ofthe LSC’s induction program for newemployees.Staff training and professionaldevelopmentThe LSC places a high value onstrengthening staff knowledge andspecialist skills. During 2011-12training was provided to staff on thefollowing topics:• information privacy and the privacylegislation• operation of a criminal law practice• trust account bookkeepingrequirements• managing people demonstratinghigh conflict behaviour• interview techniques• operation of the LSB’s Fidelity Fund• new LSB policies relating tolawyer mental health and fitand proper person• role of the State Trustees• research database use, and• gathering and managementof evidence.Occupational Healthand SafetyThe LSC is committed to occupationalhealth and safety compliance, as wellas the general health and wellbeingof staff occupying the premises.Issues relating to the maintenance ofa safe workplace and practices arereported and considered through anactive Occupational Health and Safety(OH&S) Committee in accordancewith the legislative requirements andinternal procedures. The Committeeis comprised of representativesfrom each work area who activelycommunicate with staff andmanagement to identify potentialissues relating to work processes andfacilities, and respond to any safetyconcerns raised.The Committee met five times duringthe reporting year. The initiatives ofthe Committee include ergonomicassessments and improvements to theoffice and work areas. During the year,the Committee organised an OH&Sweek, which was filled with a range ofactivities including a presentation bya dietician and a healthy breakfast forall staff. There were no reported OH&Srelated incidents in the reporting year.Fitness and WellbeingCommitteeDuring 2010-11, the LSC formed aFitness and Wellbeing Committee,which is responsible for organisingevents and activities that promote thebenefits of good health and fitness.The Committee seeks to supportstaff who currently maintain a healthylifestyle and engage those who maybe disengaged from health and fitnessactivities. The impact within theorganisation has been very positivewith many staff participating in atleast one activity during the reportingyear. Some of the activities that wereorganised during the year included:• yoga• soccer• group outdoor fitness training, and• The Corporate Cup WalkingChallenge.34 Legal Services COMMISSIONER Annual Report 2012

chapter 03governanceFreedom of InformationThe LSC is subject to the Freedomof Information Act 1982 (the FOI Act).The FOI Act provides every person witha legally enforceable right to accessdocuments in the possession of anagency, subject to certain exceptions.Due to the sensitive nature of themajority of documents held by theLSC, an exemption often applies topreclude access.Requests received and requestsprocessed during the yearDuring the period 1 July 2011 to 30June 2012, the LSC received two newvalid requests under the FOI Act. TheLSC processed these two requestsduring the year. Access was refused infull in relation to one case, while in theother case, the LSC did not possessthe documents requested. A thirdrequest, which was lodged during theperiod 1 July 2010 to 30 June 2011, wasthe subject of a VCAT appeal and isdiscussed below.Applications to VCAT duringthe yearWhere the LSC refuses to provideaccess to a document requestedunder the FOI Act, a person may applyto VCAT for review of the decision.There was one VCAT appeal lodged inthe period 2011-12 which was settledbefore proceeding to hearing. Thisappeal related to a request which hadpreviously been reported as awaitingdecision in the 2011 Annual Report.There was one VCAT appeal lodged inthe period 2011-12 which is awaitinghearing. This appeal relates to therequest for access that was refusedin full in the period 2011-12.Making a requestA request for access to documentsmade under the FOI Act must be:• in writing (and provide suchinformation as is reasonablynecessary to enable identificationof the relevant documents); and• accompanied by the prescribedapplication fee.Requests for documents in thepossession of the LSC should beaddressed to:Freedom of Information OfficerLegal Services CommissionerLevel 9, 330 Collins StreetMELBOURNE VIC 3000Access charges may also apply oncedocuments have been processed and adecision on access made; for examplephotocopying and search and retrievalcharges.Further information regardingFreedom of Information can be foundon FOI Online at www.foi.vic.gov.auBuilding Act 1993The LSC does not own or controlany government buildings andconsequently is exempt from notifyingits compliance with the building andmaintenance provisions of theBuilding Act 1993.WhistleblowersProtection Act 2001The Whistleblowers Protection Act2001 encourages and assists peoplemaking disclosures of improperconduct by public service officersand public bodies. It providesprotection to people who makedisclosures in accordance with thatAct and establishes a system for thematters disclosed to be investigatedand rectifying action to be taken.Procedures have been developed todeal with disclosures made to the LSCunder the Whistleblowers ProtectionAct 2001 (consistent with OmbudsmanVictoria’s model procedures).The procedures can be obtained fromthe LSC’s website.The LSC received one purporteddisclosure under the WhistleblowersProtection Act 2001 during the pastyear. The LSC determined that it did notmeet the requirements for a protecteddisclosure under the WhistleblowersProtection Act. There were nodisclosures referred to the LSC bythe Ombudsman.DisclosuresDisclosures of improper conduct ordetrimental action by the LSC may bemade to the following officer:Executive DirectorRegulations & ComplaintsTel: 9679 8001Fax: 9679 8101Email: admin@lsc.vic.gov.auAlternatively disclosures may be madedirectly to the Ombudsman:Ombudsman VictoriaLevel 9, 459 Collins Street(North Tower)Melbourne VIC 3000Tel: 9613 6222Toll Free: 1800 806 314www.ombudsman.vic.gov.auLegal Services COMMISSIONER Annual Report 2012 35

National CompetitionPolicyIn 1996, all Australian Governments(Federal, State and Territory) agreed toreview and, where appropriate, reformall existing legislative restrictionson competition. Under the NationalCompetition Policy, the guidinglegislative principle is that legislation,including future legislative proposals,should not restrict competition unlessit can be demonstrated that:• the benefits of the restriction to thecommunity as a whole outweigh thecosts; and• the objectives of the legislationcan only be achieved by restrictingcompetition.The LSC continues to comply withthe requirements of the NationalCompetition Policy.ConsultanciesVictorian IndustryParticipation PolicyIn October 2003, the VictorianParliament passed the VictorianIndustry Participation Policy Act2003, which requires public bodiesand departments to report on theimplementation of the VictorianIndustry Participation Policy (VIPP).Departments and public bodies arerequired to apply VIPP in all tendersover $3 million in metropolitanMelbourne, and $1 million in regionalVictoria. For the reporting period, theLSC did not commence any contractsto which the VIPP applies.Development of a threeyearstrategic planIn 2011-12, LSC and Board staffcommenced a process for developinga combined three-year strategicplan for the period 2012 to 2015. Allstaff were invited to participate in theplanning process, with workshopsbeing held at the work unit level andmanagement level to identify anddiscuss internal and external issuesand organisation-wide goals andobjectives. Directors and managementacross the two organisations furtherconsidered the issues that were raisedduring these workshops. The ideaswere subsequently consolidated intoa simple and practical strategic plan.The Board also provided input into thestrategic plan through its planningday held in June 2012. Business planscovering the 2012-13 period were alsodeveloped to accompany the three-yearstrategic plan. The strategic plan isanticipated to be finalised in the earlypart of 2012-13.Details of consultancies over $10,000Figure 19 lists the consultants engaged in 2011-12 where the cost of the engagement was $10,000 or above.Figure 19 Details of consultancies over $10,000ConsultantLawry CohenConsulting Pty LtdPurpose ofConsultancyLSC StrategicPlanStartDateEndDateTotal ApprovedProject Fee(Excluding GST)Expenditure1/7/11 to 30/6/12(Excluding GST)FutureExpenditure(Excluding GST)11/08/11 23/11/11 $11,200 $11,200 $0Details of consultancies under $10,000In 2011-12, the LSC engaged one consultancy where the total fees payable to the consultant was less than $10,000.The total value of the consultancy was $3,420 excluding GST.36 Legal Services COMMISSIONER Annual Report 2012

Waste generationThe LSC also monitors the levels ofwaste generated by its operations andstaff. The 2011-12 waste assessment,also carried out by Great ForestsAustralia, identified a slight increasein the total amount of daily wastegenerated, however the amount ofwaste generated per FTE remainsrelatively consistent year to year.It should be noted that the wasteassessments are a snapshot of theoffice waste generation at a single pointin time, extrapolated to represent atypical year. The results may thereforebe skewed by individual events capturedon the date of assessment.2011-12 activitiesGeneral waste management forthe LSC is undertaken by cleanersappointed by the building manager.By the end of the reporting year acommingled recycling service hadnot been made available withinthe building. However buildingmanagement had appointed a newcleaning contractor and a fullycommingled recycling system wasscheduled to commence in July 2012.The LSC continues to recyclesmall computer components andperipherals, CDs, DVDs, used printercartridges, rechargeable batteries,old mobile telephones and theirbatteries and corks through a not forprofit recycling service, Green Collect.Staff are also encouraged to bringthese items in from home to use thisrecycling facility. In 2011-12, 187kg ofmaterial was recycled through thisservice. In addition 6.156 tonnes ofpaper and cardboard were sent forrecycling through a secure documentdestruction company.2012-13 TargetReduce waste to landfill by 50%,compared to the 2007-08 baseline.Figure 22 LSC waste generationDaily waste generationBaseline 2008-09 2009-10 2010-11 2011-122007-08Total waste to landfill (kg) 10.9 9.5 12.3 12.5 13.57Waste to landfill / FTE (kg) 0.19 0.17 0.18 0.17 0.18Paper consumptionDue to the nature of the workundertaken by both the LSC and theLSB, a significant volume of paperis used within the office. While thisis largely unavoidable, the GreenTeam has used the EMP to identifywhere reductions in paper use canbe achieved.2011-12 activitiesThe LSC recorded a 6.7% decreasein total paper consumption across2011-12. This was largely attributableto the adoption of electronic meetingpapers by both Board and Committeemembers, which was first successfullytrialled in 2010-11. Most Board andCommittee members now use tabletcomputers to read and mark-up papersinstead of requiring printed copies.This reduction was not sufficient tomeet the 2010-11 Target of a 15 percentreduction of paper consumption perFTE from the baseline, however areduction of 8.6% towards this figurehas already been achieved, andthe organisation continues to movetowards this goal.Staff are encouraged to print doublesidedwhere possible, and correspondelectronically or via telephone (asappropriate) instead of communicatingvia letter. A strong emphasis is alsoplaced on electronic documentmanagement for filing.Another significant change was thepurchase of a new line of copy paperwhich contained 50% recycled postconsumerwaste material. This allowedthe organisation to achieve the highestpercentage of recycled content paperusage since the baseline data wasreported in 2008.2012-13 TargetsReduce FTE paper consumption by 15%compared to the 2007-08 baseline.Figure 23 LSC paper consumptionTotal paper usageTotal units of copy paper used(A4 reams)Units of copy paper used perFTE (A4 reams/FTE)*Percentage of 75-100% recycledcontent copy paper purchased (%)Percentage of 50-75% recycled contentcopy paper purchased (%)Percentage of 0-50% recycled contentcopy paper purchased (%)Baseline2007-082008-09 2009-10 2010-11 2011-121,555 1,887 2,079 1,974 184126.5 33.0 30.7 26.4 24.225.8 0.0 0.0 0.0 2.291.3 87.9 0.9 # 1.9 93.72.9 12.1 99.1 # 98.1 4.1* Full time equivalents as at 30 June each year.# The significant decrease in 50-75% paper usage from 2008-09 to 2009-10 was due to the supplier changing information on % of recycled content forthe one product.40 Legal Services COMMISSIONER Annual Report 2012

Water consumptionThe offices of the LSC are leasedand water consumption for kitchensand bathrooms is included within thelease contract. Therefore no data onwater consumption is available forreporting. However the office is ableto gauge the rate of flow for runningtaps. Peak flow has been measured at7 litres per minute, which equates toa four star water efficiency labellingstandards (WELS) rating. Additionallyall taps have been fitted with aeratorswhich allow a lower flow to have agreater volume when washing dishesand hands, thereby helping to reducewater use.Transport useThe LSC does not operate a fleet ofvehicles for business use. Instead,where transport is required for staffto attend meetings or events, publictransport is the preferred optionof travel. The LSC provides publictransport tickets and taxi vouchersfor staff use. For areas beyond thenormal reach of public transport orthe use of taxis, vehicles are oftenhired through the State GovernmentVehicle Pool. Hire charges includesthe purchase of carbon offsets foreach journey. Carbon offsets fromthe Vehicle Pool are managed by theDepartment of Sustainability andEnvironment. Occasionally othershort business trips are made usinga car leased to an Executive Director.Kilometres travelled for these trips arenot recorded.The LSC has a travel policy whichincludes the purchase of carboncredits for all air travel undertaken.2011-12 activitiesThe LSC continued to promote theuse of public transport to destinationsthroughout Victoria. Public transportwas used for travel to variousmetropolitan destinations as wellas to deliver a presentation to legalpractitioners in Geelong.2012-13 TargetTo continue to support the use ofpublic transport to destinationsthroughout Victoria.Figure 24 LSC transport useBusiness related travelBaseline2007-082008-09 2009-10 2010-11 2011-12Total distance travelled by aeroplane (km) 57,370 29,320 31,836 19,816 30,044Total distance travelled by car (km)* Not recorded Not recorded 2,799 2,780 2,849Percentage of employees regularly(>75 per cent of work attendance days)using public transport, cycling, walking,or car pooling to and from work orworking from home.* Includes only distances travelled in vehicles hired from State Government vehicle pool.90.48 96.97 96.10 92.68 94.74Legal Services COMMISSIONER Annual Report 2012 41

Greenhouse gas emissionsBelow is a summary of the greenhousegas emissions of the LSC for the 2011-12 year, based on energy consumption,transport used and waste generated.2011-12 activitiesFrom the baseline measurement,greenhouse gas emissions producedby LSC business operations have fallenby 34.9%. This is largely due to thepurchase of green power the by the LSC.The increase in greenhouse gasemissions associated with wastegeneration noted in 2010-11 and2011-12 are the result of newcalculations of the volumes ofemissions generated from waste.2012-13 TargetTo reduce greenhouse gasemissions by 50% comparedto the 2007-08 baseline.Figure 25 LSC greenhouse gas emissionsGreenhouse gas emissionsBaseline2007-082008-09 2009-10 2010-11 2011-12Total greenhouse gas emissionsassociated with energy use (t CO2-e)Total greenhouse gas emissionsassociated with vehicle hire* (t CO2-eTotal greenhouse gas emissionsassociated with air travel (t CO2-e)(approximate)Total greenhouse gas emissionsassociated with waste production (t CO2 e)Greenhouse gas emissions offsetspurchased (t CO2-e)*217.65 215.87 182.26 145.59 139.81Not recorded Not recorded Not recorded Not recorded Not recorded17.36 9.05 9.80 4.38 6.7N/A 2.66 2.91 4.12 6.43Not available Not available Not available Not available Not available* Offsets purchased through the hire of State Government pool vehicles are administered by the Department of Sustainability and Environment andnot reported here.42 Legal Services COMMISSIONER Annual Report 2012

chapter 04FINANCIAL reportFor the financial year ended 30 June 2012This financial report covers the Legal ServicesCommissioner (LSC) as an individual entity and ispresented in Australian currency.The LSC is a not-for-profit government agency of the state of Victoria.The LSC was established pursuant to the Legal Profession Act 2004.Its principal address is Level 9, 330 Collins Street Melbourne.A description of the nature of the LSC’s operations and its principal activitiesis included in the Report of Operations on pages 7 to 30 which does not formpart of this financial report.For queries in relation to our reporting please call 1300 796 344,email admin@lsc.vic.gov.au or see our website www.lsc.vic.gov.auLegal Services COMMISSIONER Annual Report 2012 43

contentsAccountable Officer’s and Chief Finance andAccounting Officer’s Declaration 45Comprehensive operating statement 46Balance sheet 47Statement of changes in equity 48Statement of cash flows 49Notes to the financial statements1 Summary of significant accounting policies 502 Income from transactions 643 Expenses from transactions 644 Cash and deposits 665 Receivables 666 Current assets – Other current assets 677 Plant and equipment 678 Intangible assets 689 Payables 6910 Borrowings 6911 Provisions 7012 Superannuation 7113 Leases 7214 Contingent assets and contingent liabilities 7215 Financial instruments 7216 Accumulated surplus 7617 Ex-gratia payments 7618 Responsible persons 7619 Remuneration of executives 7720 Related party transactions 7721 Remuneration of auditors 7722 Subsequent events 7723 Glossary of terms and style conventions 78independent auditor’s report 8044 Legal Services COMMISSIONER Annual Report 2012

Accountable Officer’s andChief Finance and AccountingOfficer’s DeclarationLegal Services COMMISSIONER Annual Report 2012 45

Comprehensiveoperating statementFor the financial year ended 30 June 2012Continuing operations2012 2011Notes $ $Income from transactionsLegal Services Board (LSB) contributions 2(a) 11,937,079 11,050,833Interest 2(b) 42,740 37,066Other income 2(c) 734,706 188,682Total income from transactions 12,714,525 11,276,581Expenses from transactionsDepreciation and amortisation expense 3(a) (284,097) (280,565)Employee benefits 3(b) (8,165,611) (7,690,650)Consultants and legal expenses 3(c) (1,203,093) (843,264)Supplies and services 3(d) (825,878) (843,149)Other operating expenses 3(e) (1,443,692) (1,208,606)Total expenses from transactions (11,922,371) (10,866,234)Net result from transactions 792,154 410,347Other economic flows included in net resultNet gain/(loss) from the revaluation of thepresent value of the long service leave liability(108,598) 7,994Net gain/(loss) on disposal of assets (49,322) (4,129)Total other economic flows included in net result (157,920) 3,865Net result for the year 634,234 414,212Other economic flows – other non-owner changes in equity - -Comprehensive result 634,234 414,212The comprehensive operating statement should be read in conjunction with the accompanying notes included on pages 50 to 79.46 Legal Services COMMISSIONER Annual Report 2012

BalancesheetAs at 30 June 20122012 2011Notes $ $ASSETSFinancial assetsCash and deposits 4, 15 204,772 1,776,759Receivables 5, 15 496,290 498,409Other current assets 6, 15 2,585,114 85Total financial assets 3,286,176 2,275,253Non-financial assetsPlant and equipment 7 63,086 172,063Intangible assets 8 477,200 700,707Prepayments 19,775 52,948Total non-financial assets 560,061 925,718Total assets 3,846,237 3,200,971LIABILITIESPayables 9 460,558 606,984Borrowings 10 44,123 81,347Provisions 11 1,308,645 1,113,964Total liabilities 1,813,326 1,802,295Net assets 2,032,911 1,398,676EQUITYContributed capital 29,366 29,366Accumulated surplus 16 2,003,545 1,369,310Net worth 2,032,911 1,398,676The balance sheet should be read in conjunction with the accompanying notes included on pages 50 to 79.Legal Services COMMISSIONER Annual Report 2012 47

Statement ofchanges in equityFor the financial year ended 30 June 2012CONTRIBUTEDEQUITYACCUMULATEDSURPLUSTOTAL EQUITY$ $ $Balance at 1 July 2010 29,366 955,098 984,464Total comprehensive result for the year - 414,212 414,212Balance at 30 June 2011 29,366 1,369,310 1,398,676Balance at 1 July 2011 29,366 1,369,310 1,398,676Total comprehensive result for the year - 634,234 634,234Balance at 30 June 2012 29,366 2,003,544 2,032,910The statement of changes in equity should be read in conjunction with the accompanying notes included on pages 50 to 79.48 Legal Services COMMISSIONER Annual Report 2012

(d) Scope and presentationof financial statementsComprehensive operating statementIncome and expenses in thecomprehensive operating statementare classified according to whetheror not they arise from ‘transactions’or ‘other economic flows’. Thisclassification is consistent with thewhole of government reporting formatand is allowed under AASB 101Presentation of Financial Statements.‘Transactions’ and ‘other economicflows’ are defined by the AustralianSystem of Government FinanceStatistics: Concepts, Sources andMethods 2005 and Amendments toAustralian System of GovernmentFinance Statistics, 2005 (AustralianBureau of Statistics Catalogue No.5514.0).‘Transactions’ are those economicflows that are considered to arise asa result of policy decisions, usuallyinteractions between two entities bymutual agreement. Transactions alsoinclude flows within an entity, suchas depreciation where the owner issimultaneously acting as the ownerof the depreciating asset and as theconsumer of the service provided bythe asset. Taxation is regarded asmutually agreed interactions betweenthe Government and taxpayers.Transactions can be in kind (e.g. assetsprovided/given free of charge or fornominal consideration) or where thefinal consideration is cash.‘Other economic flows’ are changesarising from market remeasurements.They include:• gains and losses from disposals;• revaluations and impairments ofnon-financial physical and intangibleassets; and• fair value changes of financialassets.The net result is equivalent to profit orloss derived in accordance with AASs.Balance sheetAssets and liabilities are presentedin liquidity order with assetsaggregated into financial assets andnon-financial assets.Current and non-current assets andliabilities (non-current being thoseassets or liabilities expected to berecovered or settled more than 12months) are disclosed in the notes,where relevant.Statement of changes in equityThe statement of changes in equitypresents reconciliations of non-ownerand owner changes in equity fromopening balance at the beginning of thereporting period to the closing balanceat the end of the reporting period.Statement of cash flowsCash flows are classified accordingto whether or not they arise fromoperating, investing, or financingactivities. This classification isconsistent with requirements underAASB 107 Statement of Cash Flows.RoundingAmounts in the financial statementshave been rounded to the nearestdollar, unless otherwise stated. Pleaserefer to the end of Note 23 for a styleconvention explaining that minordiscrepancies in totals of tables aredue to rounding.(e) Income from transactionsIncome is recognised to the extentthat it is probable that the economicbenefits will flow to the entity and theincome can be reliably measured atfair value.Funding from the LSBThe Legal Profession Act 2004 section6.7.7 states that the LSC must be paidsuch amount as determined by the LSBto meet the expenses of, and dischargethe liabilities incurred by, the LSC inperforming functions under this Actduring the year.All income received by the LSC is paidinto the Operating Account with theexception of disputed costs which arepaid into a separate account.Interest incomeInterest income includes interestreceived on bank deposits.Other incomeOther income generally representslegal practitioner cost recoveries andpayments from the LSB for the use ofassets owned by the LSC.Cost orders granted to the LSC arerecognised when a date is settled forwhen the payment is due.(f) Expenses from transactionsExpenses from transactions arerecognised as they are incurred, andreported in the financial year to whichthey relate.Employee benefitsThese expenses include all costsrelated to employment including wagesand salaries, fringe benefits tax, leaveentitlements, redundancy paymentsand WorkCover premiums.SuperannuationThe amount recognised in thecomprehensive operating statementis the employer contributions formembers of both defined benefit anddefined contribution superannuationplans that are paid or payable duringthe reporting period.The Department of Treasury andFinance (DTF) in their Annual FinancialStatements, disclose on behalf of theState as the sponsoring employer, thenet defined benefit cost related to themembers of these plans as anadministered liability. Refer to DTF’sAnnual Financial Statements for moredetailed disclosures in relation tothese plans.Legal Services COMMISSIONER Annual Report 2012 51

1 Summary of significant accounting policies CONTINUEDDepreciation andamortisation expenseAll plant and equipment and othernon-financial physical assets that havefinite useful lives are depreciated.Depreciation is generally calculatedon a straight-line basis, at rates thatallocate the asset’s value, less anyestimated residual value, over itsestimated useful life.The estimated useful lives, residualvalues and depreciation method arereviewed at the end of each annualreporting period, and adjustmentsmade where appropriate.The following are typical estimateduseful lives for the different assetclasses for current and prior years:The LSC recharges staff salaries andon costs to the LSB for those staffundertaking LSB functions.(g) Other economic flows includedin the net resultOther economic flows measure thechange in volume or value of assetsor liabilities that do not result fromtransactions.2012 2011Motor vehicles 3 years 3 yearsOffice equipment 5 to 10 years 5 to 10 yearsOffice furniture 5 to 10 years 5 to 10 yearsComputer equipment 3 to 5 years 3 to 5 yearsIntangible assets 5 years 5 yearsIntangible produced assets withfinite useful lives are depreciated asan expense from transactions on asystematic (typically straight-line)basis over the asset’s useful life.Depreciation begins when the asset isavailable for use, that is, when it is inthe location and condition necessaryfor it to be capable of operating in themanner intended by management.Supplies and servicesSupplies and services are recognisedas an expense in the reporting periodin which they are incurred.Other operating expensesOther operating expenses generallyrepresent the day-to-day running costsincurred in normal operations.Bad and doubtful debtsRefer to Note 1(i) Impairment offinancial assets.Recharge of servicesThe LSB to the LSCExpenses directly incurred by the LSBfor occupancy, depreciation and otherrelevant operating costs have beenproportioned before being expensedand are charged directly to the LSBand the LSC. The LSC are charged itsportion of overhead costs.The LSC to the LSBUnder section 6.4.1 of the LegalProfession Act 2004, staff supportingthe activities of the LSB are classifiedas employees of the LSC, who employsall staff under Part 3 of the PublicAdministration Act 2004.Net gain/(loss) on non-financial assetsNet gain/(loss) on non-financialassets and liabilities includes realisedand unrealised gains and losses asfollows:Disposal of non-financial assetsAny gain or loss on the disposal ofnon-financial assets is recognised atthe date of disposal and is determinedafter deducting from the proceeds thecarrying value of the asset at that time.Impairment of non-financial assetsIntangible assets with indefinite usefullives (and intangible assets not yetavailable for use) are tested annuallyfor impairment (as described below)and whenever there is an indicationthat the asset may be impaired.All other assets are assessed annuallyfor indications of impairment.If there is an indication of impairment,the assets concerned are tested as towhether their carrying value exceedstheir recoverable amount. Where anasset’s carrying value exceeds itsrecoverable amount, the difference iswritten off as an other economic flow,except to the extent that the writedowncan be debited to an assetrevaluation surplus amount applicableto that class of asset.If there is an indication that there hasbeen a change in the estimate of anasset’s recoverable amount since thelast impairment loss was recognised,the carrying amount shall be increasedto its recoverable amount. Thisreversal of the impairment loss occursonly to the extent that the asset’scarrying amount does not exceed thecarrying amount that would have beendetermined, net of depreciation oramortisation, if no impairment loss hadbeen recognised in prior years.52 Legal Services COMMISSIONER Annual Report 2012

It is deemed that, in the event of theloss or destruction of an asset, thefuture economic benefits arisingfrom the use of the asset will bereplaced unless a specific decisionto the contrary has been made. Therecoverable amount for most assets ismeasured at the higher of depreciatedreplacement cost and fair value lesscosts to sell. Recoverable amount forassets held primarily to generate netcash inflows is measured at the higherof the present value of future cashflows expected to be obtained from theasset and fair value less costs to sell.Refer to Note 1(j) in relation to therecognition and measurement of nonfinancialassets.Net gain/(loss) on financialinstrumentsNet gain/(loss) on financial instrumentsincludes:• realised and unrealised gains andlosses from revaluations of financialinstruments at fair value;• impairment and reversal ofimpairment for financial instrumentsat amortised cost; and• disposals of financial assets.Revaluations of financial instrumentsat fair valueRefer to Note 1(h) Financialinstruments.Other gains/(losses) from othereconomic flowsOther gains/(losses) from othereconomic flows include the gains orlosses from the revaluation of thepresent value of the long service leaveliability due to changes in the bondinterest rates and transfer of amountsfrom the reserves and/or accumulatedsurplus to net result due to disposalor derecognition or reclassification.(h) Financial instrumentsFinancial instruments arise out ofcontractual agreements that give riseto a financial asset of one entity and afinancial liability or equity instrumentof another entity. Due to the nature ofthe LSC’s activities, certain financialassets and financial liabilities ariseunder statute rather than a contract.Such financial assets and financialliabilities do not meet the definitionof financial instruments in AASB 132Financial Instruments: Presentation.For example, statutory receivablesarising from taxes, fines and penaltiesdo not meet the definition of financialinstruments as they do not arise undercontract.Where relevant, for note disclosurepurposes, a distinction is madebetween those financial assets andfinancial liabilities that meet thedefinition of financial instruments inaccordance with AASB 132 and thosethat do not.The following refers to financialinstruments unless otherwise stated.Categories of non-derivative financialinstrumentsLoans and receivablesLoans and receivables are financialinstrument assets with fixed anddeterminable payments that are notquoted on an active market. Theseassets are initially recognised at fairvalue plus any directly attributabletransaction costs. Subsequent toinitial measurement, loans andreceivables are measured at amortisedcost using the effective interestmethod, less any impairment.Loans and receivables categoryincludes cash and deposits, tradereceivables and other receivables(refer to Note 1(i)).Financial liabilities at amortised costFinancial instrument liabilities areinitially recognised on the date theyare originated. They are initiallymeasured at fair value plus anydirectly attributable transaction costs.Subsequent to initial recognition,these financial instruments aremeasured at amortised cost withany difference between the initialrecognised amount and the redemptionvalue being recognised in profit andloss over the period of the interestbearingliability, using the effectiveinterest rate method.Financial instrument liabilitiesmeasured at amortised cost includeall payables, deposits held andinterest-bearing arrangements otherthan those designated at fair valuethrough profit or loss.(i) Financial assetsCash and depositsCash and deposits comprise of cashon hand and cash at bank.ReceivablesReceivables consist of:• contractual receivables whichinclude mainly debtors in relationto goods and services;• accrued income; and• GST input tax credits recoverable.Contractual receivables are classifiedas financial instruments andcategoried as loans and receivables(refer to Note 1(h) for recognition andmeasurement). Statutory receivables,are recognised and measured similarlyto contractual receivables (except forimpairment), but are not classified asfinancial instruments because they donot arise from a contract.Receivables are subject to impairmenttesting as described below. A provisionfor doubtful receivables is recognisedwhen there is objective evidence thatthe debts may not be collected, and baddebts are written off when identified.Legal Services COMMISSIONER Annual Report 2012 53

1 Summary of significant accounting policies CONTINUEDDerecognition of financial assetsA financial asset (or, where applicable,a part of a financial asset or part ofa group of similar financial assets) isderecognised when:• the rights to receive cash flows fromthe asset have expired; or• the LSC retains the right to receivecash flows from the asset, but hasassumed an obligation to pay themin full without material delay to athird party under a ‘pass through’arrangement; or• the LSC has transferred its rightsto receive cash flows from the assetand either:(a) has transferred substantially all therisks and rewards of the asset, or(b) has neither transferred norretained substantially all the risksand rewards of the asset, but hastransferred control of the asset.Where the LSC has neither transferrednor retained substantially all the risksand rewards or transferred control,the asset is recognised to the extentof the LSC’s continuing involvement inthe asset.Impairment of financial assetsAt the end of each reporting periodthe LSC assesses whether there isobjective evidence that a financial assetor group of financial assets is impaired.All financial instrument assets, exceptthose measured at fair value throughprofit or loss, are subject to annualreview for impairment.Receivables are assessed for bad anddoubtful debts on a regular basis.Those bad debts considered as writtenoff by mutual consent are classified asa transaction expense. Bad debts notwritten off by mutual consent and theallowance for doubtful receivables areclassified as other economic flows inthe net result.The amount of the allowance is thedifference between the financialasset’s carrying amount and thepresent value of estimated futurecash flows, discounted at the effectiveinterest rate.In assessing impairment of statutory(non-contractual) financial assets,which are not financial instruments,professional judgement is appliedin assessing materiality and usingestimates, averages and othercomputational methods in accordancewith AASB 136 Impairment of Assets.(j) Non-financial assetsPlant and equipmentAll non-financial physical assets,are measured initially at cost andsubsequently revalued at fair valueless accumulated depreciationand impairment. Where an asset isacquired for no or nominal cost, thecost is its fair value at the date ofacquisition.The initial cost for non-financialphysical assets under a finance lease(refer to Note 1(l)) is measured atamounts equal to the fair value of theleased asset or, if lower, the presentvalue of the minimum lease payments,each determined at the inception ofthe lease.The fair value of plant, equipment andvehicles is normally determined byreference to the asset’s depreciatedreplacement cost. Existing depreciatedhistorical cost is generally areasonable proxy for depreciatedreplacement cost because of the shortlives of the assets concerned.For the accounting policy onimpairment of non-financial physicalassets, refer to impairment of nonfinancialassets under Note 1(g)Impairment of non-financial assets.Physical assetsPurchased physical assets are initiallyrecognised at cost. Subsequently,physical assets with finite useful livesare carried at cost less accumulateddepreciation and accumulatedimpairment losses.Intangible assetsPurchased intangible assetsare initially recognised at cost.Subsequently, intangible assetswith finite useful lives are carried atcost less accumulated depreciation/amortisation and accumulatedimpairment losses. Costs incurredsubsequent to initial acquisition arecapitalised when it is expected thatadditional future economic benefitswill flow to the LSC.When the recognition criteria inAASB 138 Intangible Assets are met,internally generated intangible assetsare recognised and measured atcost less accumulated depreciation/amortisation and impairment.Refer to Note 1(f) Depreciation andNote 1(g) Impairment of non-financialassets.Change in accounting policyDuring the financial year the LSCincreased its recognition threshold forphysical and intangible assets from$1,000 to $5,000. Since the changein policy newly acquired physicaland intangible assets below thecapitalisation threshold of $5,000 areexpensed. The change in policy hasresulted in a net impact of $49,322on this financial year’s result.Other non-financial assetsPrepaymentsOther non-financial assets includeprepayments which representpayments in advance of receipt ofgoods or services or that part ofexpenditure made in one accountingperiod covering a term extendingbeyond that period.54 Legal Services COMMISSIONER Annual Report 2012

(k) LiabilitiesPayablesPayables consist of:• contractual payables, such asaccounts payable, and unearnedincome. Accounts payable representliabilities for goods and servicesprovided to the LSC prior to the endof the financial year that are unpaid,and arise when the LSC becomesobliged to make future paymentsin respect of the purchase of thosegoods and services;• statutory payables, such as goodsand services tax and fringe benefitstax payables; and• disputed cost payables.Contractual payables are classified asfinancial instruments and categorisedas financial liabilities at amortised cost(refer to Note 1(h)). Statutory payablesare recognised and measured similarlyto contractual payables, but are notclassified as financial instruments andnot included in the category of financialliabilities at amortised cost, becausethey do not arise from a contract.ProvisionsProvisions are recognised when theLSC has a present obligation, thefuture sacrifice of economic benefitsis probable, and the amount of theprovision can be measured reliably.The amount recognised as a liability isthe best estimate of the considerationrequired to settle the presentobligation at reporting period, takinginto account the risks and uncertaintiessurrounding the obligation. Where aprovision is measured using the cashflows estimated to settle the presentobligation, its carrying amount is thepresent value of those cash flows,using discount rate that reflects thetime value of money and risks specificto the provision.When some or all of the economicbenefits required to settle a provisionare expected to be received froma third party, the receivable isrecognised as an asset if it is virtuallycertain that recovery will be receivedand the amount of the receivable canbe measured reliably.Employee benefitsProvision is made for benefits accruingto employees in respect of wages andsalaries, annual leave and long serviceleave for services rendered to thereporting date.(i) Wages and salaries,annual leave and sick leaveLiabilities for wages and salaries,including non-monetary benefitsannual leave and accumulating sickleave are recognised in the provisionfor employee benefits, classified ascurrent liabilities. Those liabilitieswhich are expected to be settled within12 months of the reporting period, aremeasured at their nominal values.Those liabilities that are not expectedto be settled within 12 months arealso recognised in the provision foremployee benefits as current liabilities,but are measured at present value ofthe amounts expected to be paid whenthe liabilities are settled using theremuneration rate expected to apply atthe time of settlement.(ii) Long service leaveLiability for long service leave (LSL)is recognised in the provision foremployee benefits.Unconditional LSL is disclosed in thenotes to the financial statements as acurrent liability, even where the LSCdoes not expect to settle the liabilitywithin 12 months because it will nothave the unconditional right to deferthe settlement of the entitlementshould an employee take leave within12 months.The components of this current LSLliability are measured at:• nominal value – component thatthe LSC expects to settle within 12months; and• present value – component that theLSC does not expect to settle within12 months.Conditional LSL is disclosed as anon-current liability. There is anunconditional right to defer thesettlement of the entitlement until theemployee has completed the requisiteyears of service. This non-current LSLliability is measured at present value.Any gain or loss following revaluationof the present value of non-currentLSL liability is recognised as atransaction, except to the extent thata gain or loss arises due to changes inbond interest rates for which it is thenrecognised as an other economic flow(refer to Note 1(g)).(iii) Termination benefitsTermination benefits are payablewhen employment is terminatedbefore the normal retirement date,or when an employee acceptsvoluntary redundancy in exchange forthese benefits. The LSC recognisestermination benefits when it isdemonstrably committed to eitherterminating the employment of currentemployees according to adetailed formal plan without possibilityof withdrawal or providing terminationbenefits as a result of an offer madeto encourage voluntary redundancy.Benefits falling due more than 12months after the end of the reportingperiod are discounted to present value.Legal Services COMMISSIONER Annual Report 2012 55

1 Summary of significant accounting policies CONTINUEDEmployee benefits on-costsEmployee benefits on-costs such aspayroll tax, workers compensationand superannuation are recognisedseparately from the provision foremployee benefits.Derecognition of financial liabilitiesA financial liability is derecognisedwhen the obligation under the liabilityis discharged, cancelled or expires.When an existing financial liability isreplaced by another from the samelender on substantially different terms,or the terms of an existing liabilityare substantially modified, such anexchange or modification is treated asa derecognition of the original liabilityand the recognition of a new liability.The difference in the respectivecarrying amounts is recognised as another economic flow in the estimatedconsolidated comprehensive operatingstatement.(l) LeasesA lease is a right to use an asset foran agreed period of time in exchangefor payment.Leases are classified at their inceptionas either operating or finance leasesbased on the economic substance ofthe agreement so as to reflect the risksand rewards incidental to ownership.Leases of plant and equipment areclassified as finance leases wheneverthe terms of the lease transfersubstantially all the risks and rewardsof ownership from the lessor to thelessee. All other leases are classifiedas operating leases.Finance leasesLSC as lesseeAt the commencement of the leaseterm, finance leases are initiallyrecognised as assets and liabilities atamounts equal to the fair value of thelease property or, if lower, the presentvalue of the minimum lease payment,each determined at the inception of thelease. The lease asset is depreciatedover the shorter of the estimateduseful life of the asset or the termof the lease.Minimum finance lease payments areapportioned between reduction of theoutstanding lease liability, and periodicfinance expense which is calculatedusing the interest rate implicit in thelease and charged directly to thecomprehensive operating statement.Contingent rentals associated withfinance leases are recognised as anexpense in the period in which theyare incurred.(m) EquityContributions by ownersAdditions to net assets which havebeen designated as contributions byowners are recognised as contributedcapital. Other transfers that are in thenature of contributions or distributionshave also been designated ascontributions by owners.Transfers of net assets arisingfrom administrative restructuringsare treated as distributions to orcontributions by owners. Transfersof net liabilities arising fromadministrative restructurings aretreated as distributions to owners.(n) CommitmentsCommitments for future expenditureinclude operating and capitalcommitments arising from contracts.These commitments are disclosedby way of a note at their nominalvalue and inclusive of the goods andservices tax (GST) payable. In addition,where it is considered appropriateand provides additional relevantinformation to users, the net presentvalues of significant individual projectsare stated. These future expenditurescease to be disclosed as commitmentsonce the related liabilities arerecognised in the balance sheet.(o) Contingent assets andcontingent liabilitiesContingent assets and contingentliabilities are not recognised in thebalance sheet, but are disclosed byway of a note and, if quantifiable,are measured at nominal value.Contingent assets and liabilities arepresented inclusive of GST receivableor payable respectively.(p) Accounting for the Goods andServices Tax (GST)Income, expenses and assets arerecognised net of the amount ofassociated GST, except where GSTincurred is not recoverable from thetaxation authority. In this case, the GSTpayable is recognised as part of thecost of acquisition of the asset or aspart of the expense.Receivables and payables are statedinclusive of the amount of GSTreceivable or payable. The net amountof GST recoverable from, or payable to,the taxation authority is included withother receivables or payables in thebalance sheet.Cash flows are presented on agross basis. The GST componentsof cash flows arising from investingor financing activities which arerecoverable from, or payable to thetaxation authority, are presented asoperating cash flow.Commitments and contingent assetsand liabilities are also stated inclusiveof GST.(q) Events after the reportingperiodAssets, liabilities, income or expensesarise from past transactions or otherpast events. Where the transactionsresult from an agreement betweenthe LSC and other parties, thetransactions are only recognised whenthe agreement is irrevocable at orbefore the end of the reporting period.Adjustments are made to amountsrecognised in the financial statementsfor events which occur after thereporting period and before the datethe financial statements are authorisedfor issue, where those events provideinformation about conditions whichexisted in the reporting period. Notedisclosure is made about eventsbetween the end of the reporting periodand the date the financial statementsare authorised for issue where theevents relate to conditions which aroseafter the end of the reporting periodand which may have a material impacton the results of subsequent years.56 Legal Services COMMISSIONER Annual Report 2012

(r) AASs issued that are not yet effectiveCertain new AASs have been published that are not mandatory for the 30 June 2012 reporting period. The Department ofTreasury and Finance assesses the impact of all these new standards and advises the LSC of their applicability and earlyadoption where applicable.As at 30 June 2012, the following AASs have been issued by the AASB but are not yet effective. They become effective forthe first financial statements for reporting periods commencing after the stated operative dates as follows:Standard/InterpretationAASB 9 FinancialinstrumentsAASB 10 ConsolidatedFinancial StatementsAASB 11 Joint ArrangementsAASB 12 Disclosure ofInterests in Other EntitiesSummaryThis standard simplifiesrequirements for theclassification andmeasurement of financialassets resulting from Phase1 of the IASB’s project toreplace IAS 39 FinancialInstruments: Recognitionand Measurement (AASB139 Financial Instruments:Recognition andMeasurement).This Standard establishesprinciples for thepresentation and preparationof consolidated financialstatements when anentity controls one ormore other entitiesand supersedes thoserequirements in AASB 127Consolidated and SeparateFinancial Statementsand Interpretation 112Consolidation – SpecialPurpose Entities.This Standard requiresentities that have an interestin arrangements that arecontrolled jointly to assesswhether the arrangementis a joint operation or jointventure. AASB 11 shall beapplied for an arrangementthat is a joint operation.It also replaces parts ofrequirements in AASB 131Interests in Joint Ventures.This Standard requiresdisclosure of informationthat enables users offinancial statements toevaluate the nature of,and risks associated with,interests in other entities andthe effects of those interestson the financial statements.This Standard replaces thedisclosure requirements inAASB 127 and AASB 131.Applicable for annualreporting periodsbeginning onImpact on publicsector entity financialstatements1 Jan 2013 Detail of impact is still beingassessed.1 Jan 2013 Not-for-profit entities arenot permitted to applythis Standard prior to themandatory application date.The AASB is assessing theapplicability of principles inAASB 10 in a not-for-profitcontext. As such, impactwill be assessed after theAASB’s deliberation.1 Jan 2013 Not-for-profit entities arenot permitted to applythis Standard prior to themandatory application date.The AASB is assessing theapplicability of principles inAASB 11 in a not-for-profitcontext. As such, impactwill be assessed after theAASB’s deliberation.1 Jan 2013 Not-for-profit entities arenot permitted to applythis Standard prior to themandatory application date.The AASB is assessing theapplicability of principles inAASB 12 in a not-for-profitcontext. As such, impactwill be assessed after theAASB’s deliberation.Legal Services COMMISSIONER Annual Report 2012 57

Standard/InterpretationAASB 13 Fair ValueMeasurementAASB 119 EmployeeBenefitsAASB 127 SeparateFinancial StatementsAASB 128 Investmentsin Associates and JointVenturesSummaryThis Standard outlines therequirements for measuringthe fair value of assets andliabilities and replaces theexisting fair value definitionand guidance in other AASs.AASB 13 includes a ‘fairvalue hierarchy’ which ranksthe valuation techniqueinputs into three levels usingunadjusted quoted prices inactive markets for identicalassets or liabilities; otherobservable inputs; andunobservable inputs.In this revised Standardfor defined benefitsuperannuation plans,there is a change tothe methodology inthe calculation ofsuperannuation expenses,in particular there is now achange in the split betweensuperannuation interestexpense (classified astransactions) and actuarialgains and losses (classifiedas ‘Other economic flows– other movements inequity’) reported on thecomprehensive operatingstatement.This revised Standardprescribes the accountingand disclosure requirementsfor investments insubsidiaries, joint venturesand associates when anentity prepares separatefinancial statements.This revised Standard setsout the requirements forthe application of the equitymethod when accounting forinvestments in associatesand joint ventures.Applicable for annualreporting periodsbeginning onImpact on publicsector entity financialstatements1 Jan 2013 Disclosure for fair valuemeasurements usingunobservable inputsare relatively onerouscompared to disclosure forfair value measurementsusing observable inputs.Consequently, the Standardmay increase the disclosuresfor public sector entities thathave assets measured usingdepreciated replacementcost.1 Jan 2013 Not-for-profit entities arenot permitted to applythis Standard prior to themandatory applicationdate. While the totalsuperannuation expenseis unchanged, the revisedmethodology is expectedto have a negative impacton the net result fromtransactions of the generalgovernment sector and forthose few Victorian publicsector entities that reportsuperannuation definedbenefit plans.1 Jan 2013 Not-for-profit entities arenot permitted to applythis Standard prior to themandatory application date.The AASB is assessing theapplicability of principles inAASB 127 in a not-for-profitcontext. As such, impactwill be assessed after theAASB’s deliberation.1 Jan 2013 Not-for-profit entities arenot permitted to applythis Standard prior to themandatory application date.The AASB is assessing theapplicability of principles inAASB 128 in a not-for-profitcontext. As such, impactwill be assessed after theAASB’s deliberation.58 Legal Services COMMISSIONER Annual Report 2012

Standard/InterpretationAASB 1053 Applicationof Tiers of AustralianAccounting StandardsAASB 2009-11 Amendmentsto Australian AccountingStandards arising fromAASB 9 [AASB 1, 3, 4, 5,7, 101, 102, 108, 112, 118,121, 127, 128, 131, 132, 136,139, 1023 and 1038 andInterpretations 10 and 12]AASB 2010-2 Amendmentsto Australian AccountingStandards arising fromReduced DisclosureRequirementsAASB 2010-7 Amendmentsto Australian AccountingStandards arising fromAASB 9 (December 2010)[AASB 1, 3, 4, 5, 7, 101,102, 108, 112, 118, 120, 121,127, 128, 131, 132, 136,137, 139, 1023 & 1038 andInterpretations 2, 5, 10, 12,19 & 127]AASB 2010-8 Amendmentsto Australian AccountingStandards – Deferred Tax:Recovery of UnderlyingAssets [AASB 112]AASB 2010-10 FurtherAmendments to AustralianAccounting Standards –Removal of Fixed Dates forFirst-time Adopters [AASB2009-11 & AASB 2010-7]SummaryThis Standard establishesa differential financialreporting frameworkconsisting of two tiers ofreporting requirements forpreparing general purposefinancial statements.This Standard gives effectto consequential changesarising from the issuanceof AASB 9.This Standard makesamendments to manyAustralian AccountingStandards, includingInterpretations, tointroduce reduceddisclosure requirementsto the pronouncements forapplication by certain typesof entities.These consequentialamendments are in relationto the introduction of AASB 9.This amendment providesa practical approach formeasuring deferred taxassets and deferred taxliabilities when measuringinvestment property by usingthe fair value model in AASB140 Investment Property.The amendments ultimatelyaffect AASB 1 First-timeAdoption of AustralianAccounting Standards andprovide relief for first-timeadopters of AustralianAccounting Standardsfrom having to reconstructtransactions that occurredbefore their date of transitionto Australian AccountingStandards.Applicable for annualreporting periodsbeginning onImpact on publicsector entity financialstatements1 Jul 2013 The Victorian Governmentis currently consideringthe impacts of ReducedDisclosure Requirements(RDRs) for certain publicsector entities and has notdecided if RDRs will beimplemented in the Victorianpublic sector.1 Jan 2013 No significant impactis expected from theseconsequential amendmentson entity reporting.1 Jul 2013 The Victorian Governmentis currently consideringthe impacts of ReducedDisclosure Requirements(RDRs) for certain publicsector entities and has notdecided if RDRs will beimplemented in the Victorianpublic sector.1 Jan 2013 No significant impactis expected from theseconsequential amendmentson entity reporting.Beginning 1 Jan 2012This amendment providesadditional clarificationthrough practical guidance.1 Jan 2013 No significant impact isexpected on entity reporting.Legal Services COMMISSIONER Annual Report 2012 59

Standard/InterpretationAASB 2011-2 Amendmentsto Australian AccountingStandards arising from theTrans-Tasman ConvergenceProject – ReducedDisclosure Requirements[AASB 101 & AASB 1054]AASB 2011-3 Amendmentsto Australian AccountingStandards – OrderlyAdoption of Changes tothe ABS GFS Manual andRelated Amendments[AASB 1049]AASB 2011-4 Amendmentsto Australian AccountingStandards to RemoveIndividual Key ManagementPersonnel DisclosureRequirements [AASB 124]AASB 2011-6 Amendmentsto Australian AccountingStandards – ExtendingRelief from Consolidation,the Equity Method andProportionate Consolidation– Reduced DisclosureRequirements [AASB 127,AASB 128 & AASB 131]SummaryThe objective of thisamendment is to includesome additional disclosurefrom the Trans-TasmanConvergence Projectand to reduce disclosurerequirements for entitiespreparing general purposefinancial statements underAustralian AccountingStandards – ReducedDisclosure Requirements.This amends AASB 1049to clarify the definition ofthe ABS GFS Manual, andto facilitate the adoptionof changes to the ABSGFS Manual and relateddisclosures.This Standard amendsAASB 124 Related PartyDisclosures by removing thedisclosure requirementsin AASB 124 in relation toindividual key managementpersonnel (KMP).The objective of thisStandard is to makeamendments to AASB 127Consolidated and SeparateFinancial Statements,AASB 128 Investments inAssociates and AASB 131Interests in Joint Venturesto extend the circumstancesin which an entity can obtainrelief from consolidation,the equity method orproportionate consolidation.Applicable for annualreporting periodsbeginning onImpact on publicsector entity financialstatements1 Jul 2013 The Victorian Governmentis currently consideringthe impacts of ReducedDisclosure Requirements(RDRs) and has not decided ifRDRs will be implemented inthe Victorian public sector.1 Jul 2012 This amendment providesclarification to userspreparing the whole ofgovernment and generalgovernment sector financialreports on the version of theGFS Manual to be used andwhat to disclose if the latestGFS Manual is not used. Noimpact on departmental orentity reporting.1 Jul 2013 No significant impactis expected from theseconsequential amendmentson entity reporting.1 Jul 2013 The Victorian Governmentis currently consideringthe impacts of ReducedDisclosure Requirements(RDRs) and has not decided ifRDRs will be implemented inthe Victorian public sector.60 Legal Services COMMISSIONER Annual Report 2012

Standard/InterpretationAASB 2011-7 Amendmentsto Australian AccountingStandards arising from theConsolidation and JointArrangements Standards[AASB 1, 2, 3, 5, 7, 9, 2009-11,101, 107, 112, 118, 121, 124,132, 133, 136, 138, 139, 1023& 1038 and Interpretations5, 9, 16 & 17]AASB 2011-8 Amendmentsto Australian AccountingStandards arising fromAASB 13 [AASB 1, 2, 3, 4,5, 7, 9, 2009-11, 2010-7, 101,102, 108, 110, 116, 117, 118,119, 120, 121, 128, 131, 132,133, 134, 136, 138, 139, 140,141, 1004, 1023 & 1038 andInterpretations 2, 4, 12, 13,14, 17, 19, 131 & 132]AASB 2011-9 Amendmentsto Australian AccountingStandards – Presentationof Items of OtherComprehensive Income[AASB 1, 5, 7, 101, 112, 120,121, 132, 133, 134, 1039 &1049]SummaryThis Standard outlinesconsequential changesarising from the issuanceof the five ‘new Standards’to other Standards. Forexample, references toAASB 127 Consolidatedand Separate FinancialStatements are amendedto AASB 10 ConsolidatedFinancial Statements orAASB 127 Separate FinancialStatements, and referencesto AASB 131 Interests inJoint Ventures are deletedas that Standard has beensuperseded by AASB 11 andAASB 128 (August 2011).This amending Standardmakes consequenticalchanges to a rangeof Standards andInterpretations arising fromthe issuance of AASB 13.In particular, this Standardreplaces the existingdefinition and guidance offair value measurementsin other AustralianAccounting Standards andInterpretations.The main change resultingfrom this Standard is arequirement for entitiesto group items presentedin other comprehensiveincome (OCI) on thebasis of whether they arepotentially reclassifiable toprofit or loss subsequently(reclassificationadjustments). Theseamendments do not removethe option to presentprofit or loss and othercomprehensive income intwo statements, nor changethe option to presentitems of OCI either before taxor net of tax.Applicable for annualreporting periodsbeginning onImpact on publicsector entity financialstatements1 Jan 2013 No significant impactis expected from theseconsequential amendmentson entity reporting.1 Jan 2013 Disclosures for fair valuemeasurements usingunobservable inputs ispotentially onerous, andmay increase disclosuresfor assets measured usingdepreciated replacementcost.1 Jul 2012 This amending Standardcould change the currentpresentation of ‘Othereconomic flows – othermovements in equity’ thatwill be grouped on thebasis of whether they arepotentially reclassifiable toprofit or loss subsequently.No other significant impactwill be expected.Legal Services COMMISSIONER Annual Report 2012 61

Standard/InterpretationAASB 2011-10 Amendmentsto Australian AccountingStandards arising fromAASB 119 (September 2011)[AASB 1, AASB 8, AASB 101,AASB 124, AASB 134, AASB1049 & AASB 2011-8 andInterpretation 14]AASB 2011-11 Amendmentsto AASB 119 (September2011) arising from ReducedDisclosure RequirementsAASB 2011-12 Amendmentsto Australian AccountingStandards arising fromInterpretation 20 [AASB 1]SummaryThis Standard makesconsequential changes toa range of other AustralianAccounting Standards andInterpretaion arising fromthe issuance of AASB 119Employee Benefits.This Standard makesamendments to AASB119 Employee Benefits(September 2011), toincorporate reduceddisclosure requirementsinto the Standard for entitiesapplying Tier 2 requirementsin preparing general purposefinancial statements.This Standard makesamendments to AASB1 First-time Adoption ofAustralian AccountingStandards, as a consequenceof the issuance of IFRICInterpretation 20 StrippingCosts in the ProductionPhase of a Surface Mine.This Standard allows thefirst-time adopters to applythe transitional provisionscontained in Interpretation 20.Applicable for annualreporting periodsbeginning onImpact on publicsector entity financialstatements1 Jan 2013 No significant impactis expected from theseconsequential amendmentson entity reporting.1 Jul 2013 The Victorian Governmentis currently consideringthe impacts of ReducedDisclosure Requirements(RDRs) and has not decided ifRDRs will be implemented inthe Victorian public sector.1 Jan 2013 There may be an impact fornew agencies that adoptAustralian AccountingStandards for the first time.No implication is expectedfor existing entities in theVictorian public sector.62 Legal Services COMMISSIONER Annual Report 2012

Standard/Interpretation2011-13 Amendments toAustralian AccountingStandard – Improvementsto AASB 10492012-1 Amendments toAustralian AccountingStandards – Fair ValueMeasurement – ReducedDisclosure Requirements[AASB 3, AASB 7, AASB 13,AASB 140 & AASB 141]AASB Interpretation 20Stripping Costs in theProduction Phase of aSurface MineSummaryThis Standard aims toimprove the AASB 1049Whole of Government andGeneral Government SectorFinancial Reporting atthe operational level. Themain amendments clarifya number of requirementsin AASB 1049, includingthe amendment to allowdisclosure of other measuresof key fiscal aggregatesas long as they are clearlydistinguished from the keyfiscal aggregates and do notdetract from the informationrequired by AASB 1049.Furthermore, this Standardprovides additionalguidance and exampleson the classificationbetween ‘transactions’ and‘other economic flows’ forGAAP items without GFSequivalents.This amending Standardprescribes the reduceddisclosure requirementsin a number of AustralianAccounting Standards as aconsequence of the issuanceof AASB 13 Fair ValueMeasurement.This Interpretation clarifieswhen production strippingcosts should lead to therecognition of an asset andhow that asset should beinitially and subsequentlymeasured.Applicable for annualreporting periodsbeginning onImpact on publicsector entity financialstatements1 Jul 2012 No significant impactis expected from theseconsequential amendmentson entity reporting.1 Jul 2013 As the Victorian whole ofgovernment and the generalgovernment (GG) sector aresubject to Tier 1 reportingrequirements (refer to AASB1053 Application of Tiersof Australian AccountingStandards), the reduceddisclosure requirementsincluded in AASB 2012-1will not affect the financialreporting for Victorianwhole of government and GGsector.1 Jan 2013 No significant impact isexpected on entity reporting.Legal Services COMMISSIONER Annual Report 2012 63

2 Income from transactions2012 2011$ $(a) Legal Services Board (LSB) contributionsLSB funding (section 6.7.7) 8,050,450 7,553,259Employee benefits (see note 3(b)) 3,886,629 3,497,574Total Legal Services Board (LSB) contributions 11,937,079 11,050,833(b) InterestInterest on bank deposits 42,740 37,066Total interest 42,740 37,066(c) Other incomeIncome from cost orders payable to LSC 717,785 179,958Charge for assets 10,706 8,724Other 6,215 -Total other income 734,706 188,682Total income from transactions 12,714,525 11,276,5813 Expenses from transactions2012 2011$ $(a) Depreciation and amortisation expenseMotor vehicle 20,470 17,394Plant and equipment 40,119 39,663Intangible assets 223,508 223,508Total depreciation and amortisation expense 284,097 280,565(b) Employee benefitsSalaries 6,912,341 6,459,159Superannuation 608,571 580,487Temporary staff 64,918 94,263Provisions 86,083 65,090Payroll and Workcover 382,876 362,932Training 65,181 74,001Other 45,641 54,7188,165,611 7,690,650Less:Recharge of services to the Legal Services Board relatingto salaries, wages and other employee benefits(3,886,629) (3,497,574)Net employee benefits expense 4,278,982 4,193,07664 Legal Services COMMISSIONER Annual Report 2012

3 Expenses from transactions CONTINUED2012 2011$ $(c) Consultants and legal expensesInvestigations 1,129,672 781,180Legal other 55,201 34,981Consultants 18,220 27,103Total consultants and legal expenses 1,203,093 843,264(d) Supplies and servicesCost of services Law Institute of Victoria 782,460 755,000Cost of services Victorian Bar Inc. 43,418 88,149Total supplies and services 825,878 843,149(e) Other operating expensesMotor vehicle 16,415 4,851Community and education 5,355 4,022Telephone and fax 19,063 20,596Information technology 173,210 180,253General administration 165,570 139,217Occupancy 685,152 592,330Travel and accommodation 16,581 9,783Audit fees 36,902 76,241Bank fees and lease interests 2,569 2,666Insurance 75,920 65,422Postage, printing and stationery 88,066 86,725Ex-gratia payments 41,905 26,500Doubtful debts 116,984 -Total other operating expenses 1,443,692 1,208,606Legal Services COMMISSIONER Annual Report 2012 65

4 Cash and deposits2012 2011$ $(a) Reconciliation of cash and cash equivalentsTotal cash and deposits disclosed in the balance sheet 1,000 1,551,690LSC bank account held for disputed costs 203,772 225,069Balances per statement of cash flows 204,772 1,776,759(b) Reconciliation of comprehensive result for the period to net cashflows from operating activitiesComprehensive result for the year 634,234 414,212Non-cash movements:Depreciation and amortisation 284,097 280,566(Gain)/loss in disposal of fixed assets 49,322 4,129(Gain)/loss from the revaluation of the long service leave provisiondue to changes in the present value of the discount rate108,598 (7,994)Other 139 -Movements in assets and liabilities:(Increase)/decrease in receivables 2,119 (76,924)(Increase)/decrease in prepayments 33,173 20,315Increase/(decrease) in payables (146,426) (300,507)Increase/(decrease) in provisions 86,083 65,090Net cash inflow (outflow) from operating activities 1,051,339 398,8875 Receivables2012 2011$ $Current receivablesContractualTrade receivables 583,107 -Provision for impairment of receivables (116,984) -Accrued income - 429,654Total contractual receivables 466,123 429,654StatutoryGST recoverable 30,167 68,755Total statutory receivables 30,167 68,755Total receivables 496,290 498,40966 Legal Services COMMISSIONER Annual Report 2012

6 Current assets – Other current assetsThe LSC’s activities are funded by the LSB. Under the provisions of the Legal Profession Act 2004 (the Act) the LSB is obligedto meet the expenses and discharge the liabilities of the LSC in performing functions under the Act.The LSB continues to fulfil its funding obligations. Instead of transferring cash to the LSC at set intervals as occurred in thepast, funding is provided by way of a loan. A corresponding borrowing is reported in the accounts of the LSB.2012 2011$ $Other current assets 2,585,114 852,585,114 857 Plant and equipmentPlant and equipment are classified primarily by the purpose for which the assets are used according to one of the five ‘PurposeGroups’ based upon Government Classification (GPC). All assets within a ‘Purposes Group’ are further sub-categorised to theasset’s nature, with each sub category being classified as a separate class of asset for financial reporting purposes.PUBLIC SAFETY AND ENVIRONMENT2012 2011$ $(a) Classification by ‘Purpose Groups’ – Carrying amountsComputer equipmentAt cost 47,530 121,407Less: accumulated depreciation (46,387) (68,162)1,143 53,245Office furnitureAt cost 9,658 43,032Less: accumulated depreciation (1,414) (5,843)8,244 37,189Motor vehicleAt cost 72,887 103,345Less: accumulated depreciation (29,458) (22,758)43,429 80,587Office equipmentAt cost 11,890 1,174Less: accumulated depreciation (1,620) (132)10,270 1,042Net carrying amount of plant and equipment 63,086 172,063Legal Services COMMISSIONER Annual Report 2012 67

7 Plant and equipment CONTINUEDCOMPUTEREQUIPMENTOFFICEFURNITUREMOTORVEHICLEOFFICEEQUIPMENTTOTAL$ $ $ $ $(b) Movements in carrying amounts – classification by ‘Public safety and environment’ purpose groupYear ended 30 June 2012Opening balance 53,245 37,189 80,587 1,042 172,063Additions - - - 17,620 17,620Disposals (19,217) (24,633) (16,688) (5,470) (66,008)Depreciation (32,885) (4,312) (20,470) (2,922) (60,589)Closing balance 1,143 8,244 43,429 10,270 63,086Year ended 30 June 2011Opening balance 65,020 25,668 49,293 - 139,981Additions 24,487 15,071 107,104 1,174 147,836Disposals (280) - (58,416) - (58,696)Depreciation (35,982) (3,550) (17,394) (132) (57,058)Closing balance 53,245 37,189 80,587 1,042 172,0638 Intangible assetsComputersoftwareComputersoftware2012 2011$ $At cost 1,107,898 1,110,922Less: accumulated amortisation and impairment (630,698) (410,215)Net book value at end of financial year 477,200 700,707Year ended 30 June 2012ComputersoftwareOpening balance 700,707Amortisation expense (223,507)Closing balance 477,200$Year ended 30 June 2011Opening balance 924,215Amortisation expense (223,508)Closing balance 700,70768 Legal Services COMMISSIONER Annual Report 2012

11 Provisions2012 2011$ $Current provisionsEmployee benefits – annual leaveUnconditional and expected to be settled within 12 months 402,658 385,615Employee benefits – long service leaveUnconditional and expected to be settled within 12 months 35,932 22,035Unconditional and expected to be settled after 12 months 336,625 342,339775,215 749,989Provisions related to employee benefit on-costsUnconditional and expected to be settled within 12 months 81,947 59,865Unconditional and expected to be settled after 12 months 51,148 51,923133,095 111,788Total current provisions 908,310 861,777Non-current provisionsEmployee benefits 347,530 218,975Provisions relating to employee benefit on costs 52,805 33,212Total non-current provisions 400,335 252,187Total provisions 1,308,645 1,113,964(a) Employee benefits and related on-costsCurrent employee benefitsAnnual leave entitlements 402,658 385,615Long service leave entitlements 372,557 364,374775,215 749,989Non-current employee benefitsLong service leave entitlements 347,530 218,975347,530 218,975Total employee benefits 1,122,745 968,964Current on-costs 133,095 111,788Non-current on-costs 52,805 33,212Total on-costs 185,900 145,000Total employee benefits and related on-costs 1,308,645 1,113,96470 Legal Services COMMISSIONER Annual Report 2012

11 Provisions CONTINUED(b) Movements in provisionsMovements in each class of provision during the financial year, other than employee benefits, are set out below:2012 $Opening balance 145,000Unwind of discount and effect of changes in the discount rate 14,325Additional provisions recognised 26,575Carrying amount at end of year 185,9002011 $Opening balance 136,590Unwind of discount and effect of changes in the discount rate (3,442)Additional provisions recognised 11,852Carrying amount at end of year 145,00012 SuperannuationEmployees of the LSC are entitled to receive superannuation benefits and the LSC contributes to both defined benefit anddefined contribution plans. The defined benefit plan(s) provides benefits based on years of service and final average salary.The LSC does not recognise any defined benefit liability in respect of the plan(s) because the entity has no legal orconstructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuationcontributions as they fall due. The Department of Treasury and Finance discloses the State’s defined benefit liabilities in itsdisclosure for administered items.However, superannuation contributions paid or payable for the reporting period are included as part of employee benefits inthe comprehensive operating statement of the LSC.The name, details and amounts expensed in relation to the major employee superannuation funds and contributions made bythe LSC are as follows:Defined benefit plans:CONTRIBUTION CONTRIBUTION OUTSTANDING OUTSTANDING2012 2011 2012 2011$ $ $ $State Superannuation Fund –revised and new 11,200 18,512 900 2,271Defined contribution plans:Vic Super 276,704 240,861 23,157 38,981Legal Super 62,097 65,783 3,568 10,443Care 13,214 26,292 1,078 2,101Australian Super 41,603 19,035 4,598 6,242MLC Masterkey 19,628 18,226 932 2,809Other Superannuation funds 138,322 121,757 9,296 7,174Total 562,768 510,466 43,529 70,021Legal Services COMMISSIONER Annual Report 2012 71

13 LeasesFinance leasesThe LSC leases motor vehicles with a carrying amount of $44,123 (2011: $81,347) under finance leases expiring within 4 to 16months. Under the terms of the leases, the LSC is not entitled to acquire the leased assets for a discount of the agreed fairvalue on expiry of the leases.Commitments in relation to finance leases are payable as follows:2012 2011$ $Within one year 29,602 41,535Later than one year but not later than five years 16,630 46,233Minimum lease payments 46,232 87,768Less: future finance charges (2,109) (6,421)Recognised as a liability 44,123 81,347Total lease liabilities 44,123 81,347Representing lease liabilities:Current (note 10) 27,816 37,223Non-current (note 10) 16,307 44,124The present value of finance lease liabilities is as follows:44,123 81,347Within one year 27,816 37,223Later than one year but not later than five years 16,307 44,124Minimum lease payments 44,123 81,34714 Contingent assets and contingent liabilitiesThere were no contingent assets or contingent liabilities at balance date (2011: nil).15 Financial instruments(a) Financial risk management objectives and policiesThe LSC’s principal financial instruments comprise of:• cash assets;• loan to the LSB;• receivables (excluding statutory receivables);• payables (excluding statutory payables); and• finance lease payables.Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basisof measurement, and the basis on which income and expenses are recognised, with respect to each class offinancial asset, financial liability and equity instrument above are disclosed in Note 1 to the financial statements.The main purpose in holding financial instruments is to prudentially manage the LSC’s financial risks within the LSC’s policyparameters.The LSC’s main financial risks include credit risk, liquidity risk and interest rate risk. The LSC manages these financial risksin accordance with its financial risk management policy.The LSC uses different methods to measure and manage the different risks to which it is exposed. Primary responsibility forthe identification and management of financial risks rests with the LSC and is monitored by the Audit Committee of the LSC.72 Legal Services COMMISSIONER Annual Report 2012

15 Financial instruments CONTINUED(b) Categorisation of financial instrumentsThe carrying amounts of the LSC’s contractual financial assets and financial liabilities are disclosed below.2012 CONTRACTUAL FINANCIALASSETS – LOANS ANDRECEIVABLESContractual financial assetsCONTRACTUAL FINANCIALLIABILITIES AT AMORTISEDCOSTTOTAL$ $ $Cash and deposits 204,771 - 204,771Other assets – loan to LSB 2,585,114 - 2,585,114Receivables:Sale of goods and services 466,123 - 466,123Total contractual financial assets 3,256,008 - 3,256,008Contractual financial liabilitiesSupplies and services - 254,620 254,620Disputed costs - 205,925 205,925Borrowings:Lease liabilities - 44,123 44,123Total contractual financial liabilities - 504,668 504,6682011Contractual financial assetsCash and deposits 1,776,758 - 1,776,758Other assets – loan to LSB 85 - 85Receivables:Sale of goods and services 429,654 - 429,654Total contractual financial assets 2,206,497 - 2,206,497Contractual financial liabilitiesSupplies and services - 261,993 261,993Disputed costs - 225,146 225,146Borrowings:Lease liabilities - 81,347 81,347Total contractual financial liabilities - 568,486 568,486(c) Credit riskCredit risk arises from the contractual financial assets of the LSC, which comprise cash, deposits and receivables.The LSC’s exposure to credit risk arises from the potential default of a counter party on their contractual obligationsresulting in financial loss to the LSC. Credit risk is measured at fair value and is monitored on a regular basis.Credit risk associated with the LSC’s financial assets is minimal because the amounts are held by Westpac BankingCorporation. Management has assessed the risk associated with the receivables as minimal because they are made up of:• funding from the LSB as per section 6.7.7 of the Legal Profession Act 2004; and• income from the service agreement in place with the LSB.The LSC’s policy is to only deal with banks with high credit ratings.Provision of impairment for contractual financial assets is recognised when there is objective evidence that the LSC will notbe able to collect a receivable. Objective evidence includes financial difficulties of the debtor, default payments, debt which aremore than 60 days overdue, and changes in debtor credit ratings.Except as otherwise detailed in the following table, the carrying amount of contractual financial assets recorded in thefinancial statements, net of any allowances for losses, represents the LSC’s maximum exposure to credit risk without takingaccount of the value of any collateral obtained.Legal Services COMMISSIONER Annual Report 2012 73

15 Financial instruments CONTINUED(d) Credit quality of contractual financial assets that are neither past due nor impaired2012 2011$ $Cash and deposits:Financial institutions: AA- (S&P) 204,772 1,776,758204,772 1,776,758(e) Ageing analysis of contractual financial assets and interest rate exposure of financial assets2012WEIGHTEDAVERAGE INTERESTRATE%CARRYINGAMOUNTINTEREST RATEEXPOSUREVARIABLEINTEREST RATENON-INTERESTBEARINGNOT PAST DUE ANDNOT IMPAIREDPAST DUEIMPAIRMENT$ $ $ $ $ $Receivables:Accrued income - - - - - - -Trade receivables - 466,123 - 583,107 37,668 545,439 (116,984)Other contractual financial assets:Cash and deposits 4.20 204,772 204,772 - - - -Other assets – loan to LSB 2,585,114 - 2,585,114 2,585,114 - -2,789,886 204,772 2,585,114 2,585,114 - -Total 3,256,009 204,772 3,168,221 2,622,782 545,439 (116,984)2011Receivables:Accrued income - 429,654 - 429,654 429,654 - -Trade receivables - - - - - - -Other contractual financial assets:Cash and deposits 4.77 1,776,758 1,776,758 - - - -Other assets – loan to LSB 85 - 85 85 - -1,776,843 1,776,758 85 85 - -Total 2,206,497 1,776,758 429,739 429,739 - -There are no material financial assets which are individually determined to be impaired. Currently the LSC does not hold anycollateral as security nor credit enhancements relating to any of its financial assets.There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired,and they are stated at the carrying amounts as indicated.74 Legal Services COMMISSIONER Annual Report 2012

15 Financial instruments CONTINUED(f) Liquidity riskLiquidity risk is the risk that the LSC would be unable to meet its financial obligations as and when they fall due. The LSCoperates under the Government’s fair payments policy of settling financial obligations within 30 days and in the event of adispute, making payments within 30 days from the date of resolution.The LSC’s maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed in the face of thebalance sheet. The LSC manages its liquidity risk by:• maintaining an adequate level of uncommitted funds that can be drawn at short notice to meet its short term obligations;and• careful maturity planning of its financial obligations based on forecasts of future cash flows.The LSC’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk.(g) Maturity analysis of contractual financial liabilities2012 CARRYINGAMOUNTNOMINALAMOUNTLESSTHAN 1MONTH1-3MONTHS3 MONTHS-1 YEAR1-5YEARS$ $ $ $ $ $Contractual financial liabilities:Interest bearing liabilities 44,123 44,123 1,978 3,956 21,882 16,307Payables 460,545 460,545 219,490 241,055 - -Total 504,668 504,668 221,468 245,011 21,882 16,3072011Contractual financial liabilities:Interest bearing liabilities 81,347 81,347 2,669 5,338 29,217 44,123Payables 487,139 487,139 261,993 225,146 - -Total 568,486 568,486 264,662 230,484 29,217 44,123The above amounts disclosed are the contractual undiscounted cash flows of each class of financial liabilities.(h) Market riskThe LSC has insignificant exposure to foreign currency risk, interest rate risk, and other price risk. Objectives, policies andprocesses used to manage each of these risks are disclosed below:(i) Foreign currency riskThe LSC is not exposed to foreign currency risk as it does not hold any foreign financial instrument.(ii) Interest rate riskFair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in marketinterest rates. The LSC does not hold any interest bearing instruments that are measured at fair value, therefore has noexposure to fair value interest rate risk.As at 30 June 2012 the LSC has minimal exposure to cash flow interest rate risk as its Operating Bank Account is funded/swept nightly to the LSB General Account. The Disputed Cost Account is a trust account and all interest received is paidto disputing parties when disputes are resolved.The inter company loan balance owed by LSB to the LSC attracts no interest as the LSB is only required to pay the LSC theapproved funding budget to meet the expenses of the LSC.(iii) Other price riskThe LSC does not believe it has any exposure to other price risk.Legal Services COMMISSIONER Annual Report 2012 75

16 Accumulated surplus2012 2011$ $Balance 1 July 1,369,311 955,098Net result for the year 634,234 414,212Balance 30 June 2,003,545 1,369,31017 Ex-gratia payments2012 2011The Legal Services Commissioner made ex-gratia paymentsunder section 4.2.16 of the Legal Profession Act 2004$ $41,905 26,50018 Responsible personsIn accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994,the following disclosures are made regarding responsible persons for the reporting period.(a) NamesThe persons who held the positions of Minister and Accountable Officer in the Legal Services Commissioner are as follows:Attorney-General The Hon. Robert Clark MP 1 July 2011 to 30 June 2012Accountable Officer Mr Michael McGarvie 1 July 2011 to 30 June 2012(b) RemunerationRemuneration received or receivable by the Accountable Officer in connection with the management of the Commissionerduring the reporting period was in the range: $270,000 to $280,000 (2011: $260,000 to $270,000).Amounts relating to Ministers are reported in the financial statements of the Department of Premier and Cabinet.76 Legal Services COMMISSIONER Annual Report 2012

19 Remuneration of executivesExecutive officersThe number of executive officers, other than ministers and accountable officers, and their total remuneration during thereporting period are shown in the first two columns in the table below in their relevant income bands. The base remunerationof executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, longserviceleave payments, redundancy payments and retirement benefits. The total annualised employee equivalent provides ameasure of full time equivalent executive officers over the reporting period.Several factors affected total remuneration payable to executives over the year. One employment contract was completedduring the year and another executive received a bonus payment during the year. Bonus payments depend on the terms ofindividual employment contracts.TOTAL REMUNERATIONBASE REMUNERATION2012 2011 2012 2011Income bandLess than $100,000 1 1 1 1$150,000 – $159,999 - - - -$160,000 – $169,999 - - - -$170,000 – $179,999 1 1 1 1$180,000 – $189,999 - - 1 1$190,000 – $199,999 1 1 - -Total number of executives 3 3 3 3Total annualised employee equivalent (AEE)* 2.2 2.2 2.2 2.2Total amount 472,022 420,205 419,135 407,096* Annualised employee equivalent is based on working 38 ordinary hours per week over the reporting period.Other personnel i.e. contractors with significant management responsibilitiesThere were no contractors charged with significant management responsibilities during the period 1 July 2011 to 30 June 2012.20 Related party transactionsAs per Note 1(f) the following related party transactions occurred between the Legal Services Board and theLegal Services Commissioner:2012 2011$ $Expenses recoverd from the Legal Services Board 11,947,785 11,059,557Expenses charged by the Legal Services Board (646,138) (592,330)Inter company loan with the Legal Services Board 2,585,114 85The LSC shares costs and services with the LSB. All transactions are at arms length. Shared costs are recharged on agreed rates.21 Remuneration of auditorsVictorian Auditor-General’s Office2012 2011$ $Audit of financial statements 13,570 13,500Total remuneration for audit and other assurance services 13,570 13,50022 Subsequent eventsThere were no subsequent events to report.Legal Services COMMISSIONER Annual Report 2012 77

23 Glossary of terms and style conventionsGloassryComprehensive resultThe net result of all items of incomeand expense recognised for the period.It is the aggregate of operating resultand other non-owner movementsin equity.DepreciationDepreciation is an expense thatarises from the consumption throughwear or time of a produced physicalor intangible asset. This expenseis classified as a ‘transaction’ andso reduces the ‘net result fromtransaction’.Employee benefits expensesEmployee benefits expenses includeall costs related to employmentincluding wages and salaries, leaveentitlements, redundancy paymentsand superannuation contributions.Ex-gratia paymentsEx-gratia payment is the gratuitouspayment of money where no legalobligation exists.Financial assetA financial asset is any asset that is:(a) cash;(b) an equity instrument of anotherentity;(c) a contractual right:• to receive cash or another financialasset from another entity; or• to exchange financial assets orfinancial liabilities with anotherentity under conditions that arepotentially favourable to the entity;or(d) a contract that will or may besettled in the entity’s own equityinstruments and is:• a non-derivative for which theentity is or may be obliged toreceive a variable number of theentity’s own equity instruments;or• a derivative that will or maybe settled other than by theexchange of a fixed amount ofcash or another financial assetfor a fixed number of the entity’sown equity instruments.Financial instrumentA financial instrument is any contractthat gives rise to a financial asset ofone entity and a financial liability orequity instrument of another entity.Financial assets or liabilities thatare not contractual are not financialinstruments.Financial liabilityA financial liability is any liability that is:(a) a contractual obligation:• to deliver cash or another financialasset to another entity; or• to exchange financial assets orfinancial liabilities with anotherentity under conditions that arepotentially unfavourable to theentity; or(b) a contract that will or may besettled in the entity’s own equityinstruments and is:• a non-derivative for which the entityis or may be obliged to deliver avariable number of the entity’s ownequity instruments; or• a derivative that will or may besettled other than by the exchangeof a fixed amount of cash or anotherfinancial asset for a fixed number ofthe entity’s own equity instruments.For this purpose the entity’s ownequity instruments do not includeinstruments that are themselvescontracts for the future receipt ordelivery of the entity’s own equityinstruments.78 Legal Services COMMISSIONER Annual Report 2012

Financial statementsDepending on the context of thesentence where the term ‘financialstatements’ is used, it may includeonly the main financial statements (i.e.comprehensive operating statement,balance sheet, cash flow statements,and statement of changes in equity);or it may also be used to replace theold term ‘financial report’ under therevised AASB 101 (September 2007),which means it may include the mainfinancial statements and the notes.Intangible assetsIntangible assets represent identifiablenon monetary assets without physicalsubstance.Interest incomeInterest income includes interestreceived on bank deposits.Net resultNet result is a measure of financialperformance of the operations for theperiod. It is the net result of items ofincome, gains and expenses (includinglosses) recognised for the period,excluding those that are classified as‘other non-owner changes in equity’.Net result from transactions/netoperating balanceA net result from transactionsor net operating balance is a keyfiscal aggregate and is incomefrom transactions minus expensesfrom transactions. It is a summarymeasure of the ongoing sustainabilityof operations. It excludes gains andlosses resulting from changes inprice levels and other changes in thevolume of assets. It is the componentof the change in net worth that is dueto transactions and can be attributeddirectly to government policies.Net worthAssets less liabilities, which is aneconomic measure of wealth.Non-financial assetsNon-financial assets are all assetsthat are not ‘financial assets’. Itincludes plant and equipment andintangible assets.Other economic flowsOther economic flows are changesin the volume or value of an assetor liability that do not result fromtransactions. It includes gains andlosses from disposals, revaluationsand impairments of non-financialphysical and intangible assets, fairvalue changes in financial instrumentsand depletion of natural assets(non-produced) from their use orremoval. In simple terms, othereconomic flows are changes arisingfrom market re-measurements.PayablesIncludes short and long term tradedebt and accounts payable, taxes andinterest payable.ReceivablesIncludes short and long term creditand accounts receivable, taxes andinterest receivable.TransactionsTransactions are those economicflows that are considered to arise asa result of policy decisions, usuallyan interaction between two entitiesby mutual agreement. They alsoinclude flows within an entity suchas depreciation where the owner issimultaneously acting as the ownerof the depreciating asset and as theconsumer of the service provided bythe asset. Transactions can be in kind(e.g. assets provided/given free ofcharge or for nominal consideration) orwhere the final consideration is cash.In simple terms, transactions arisefrom the policy decisions of the LSC.Style conventionsFigures in the tables and in the texthave been rounded. Discrepanciesin tables between totals and sums ofcomponents reflect rounding.The notation used in the tables is asfollows:– zero, or rounded to zero(xxx) negative numbers20xx year period20xx xx year periodThe financial statements and notesare presented based on the illustrationfor a government department in the2011-12 Model Report for VictorianGovernment Departments. Thepresentation of other disclosuresis generally consistent with theother disclosures made in earlierpublications of the LSC’s annualreports.Legal Services COMMISSIONER Annual Report 2012 79

80 Legal Services COMMISSIONER Annual Report 2012

Legal Services COMMISSIONER Annual Report 2012 81

chapter 05complaints dataThis chapter provides information about complaints handled by the LSC in the period 1 July 2011to 30 June 2012. It covers complaints handled under the Legal Profession Act 2004 as well asany outstanding complaints and disputes inherited under the Legal Practice Act 1996 (the old Act).Complaints under the Legal Profession Act 2004Figure 26 Enquiries receivedThe following table shows the number of enquiries received including the outcomes.YearComplaint FormsentInformationprovided – nofurther actiontakenReferral toother body / NojurisdictionConciliatedoutcomeTotal enquiriesreceived2011-12 2,779 (52%) 2,154 (41%) 360 (7%) 23 (0.5%) 5,3162010-11 2,270 (50%) 1,635 (35%) 667 (15%) 0* 4,5722009-10 2,590 (50%) 1,666 (32%) 946 (18%) 0* 5,202*Figures were not recorded in previous years.Note: As with new complaints, the manner in which ‘enquiries’ are handled has changed during this reporting period. This is reflected in thebreakdown above.Figure 27 New complaints receivedThe following table shows the number of new complaints received by complaint type.YearCivil onlyDisciplinaryonlyMixedAll CivilAllDisciplinaryTotalComplaints2011-12 886 (45%) 994 (50%) 102 (5%) 988 (50%) 1,096 (55%) 1,9822010-11 812 (41%) 992 (50%) 180 (9%) 992 (41%) 1,172 (59%) 1,9842009-10 568 (25%) 1,094 (50%) 549 (25%) 1,117 (51%) 1,643 (74%) 2,211Note: The manner in which new complaints are assessed and handled has changed. Refer to the DRT/RRT section earlier in this report for informationabout these changes (pages 9 and 11).Figure 28 New complaints by lawyer typeThe following table shows the number of new complaints received by lawyer type.Civil Disciplinary Mixed Total 2011-12Solicitors 858 (46%) 929 (49%) 97 (5%) 1,884 (95%)Barristers 28 (29%) 65 (66%) 5 (5%) 98 (5%)Total 886 994 102 1,982Figure 29 Investigations commencedThe following table shows the number of formal investigations commenced by the LSC and those referred to the PrescribedInvestigatory Bodies (PIBs), that is, the professional associations, the LIV and Bar.Investigations 2009-10 2010-11 2011-12Investigations by LSC 581 (77%) 333 (74%) 140*Investigations referred to PIBs 168 (23%) 116 (26%) 96Total Investigations 749 449 236* The decrease in the number of ‘investigations’ is as a result of the way in which new complaints are now handled. A further 208 complaints weresummarily dismissed after some initial investigation was conducted.82 Legal Services COMMISSIONER Annual Report 2012

Figure 30 Investigations referred to PIBsThe following table shows the number of investigations referred to the PIBs.Investigations referred to PIBs 2009-10 2010-11 2011-12Investigations referred to LIV 126 86 81Investigations referred to Bar 15 30 15Total 141 116 96## In 2011-12, a further 97 complaints containing a civil dispute were delegated to the LIV, and the Bar were delegated a further five complaintscontaining a civil disputes.Figure 31 Own motion investigationsThe following table shows the number of own motion investigations commenced by the LSC.Basis for own motioninvestigationPreliminaryInvestigationOwn MotionInvestigationTotal2010-11 2011-12 2010-11 2011-12 2010-11 2011-12Trust account report 5 0 11 4 16 4Referral from other agency (including a court) 8 2 17 11 25 13LSC complaint file 3 1 12 9 15 10Media 2 0 2 0 4 0Possible unqualified practice 0 1 3 13 3 14Other 1 0 7 1 8 1Total 19 4 52 38 71 42Note: The increase in investigations regarding unqualified practice arose from improvements to the way information is now shared and analysed.The numbers for last year have been adjusted to take into account the additional category included this year.Figure 32 Allegations featured in new complaintsThe following table shows the type of allegations featured in new complaints. A complaint may contain a number of allegations.This means there are more allegations than complaints.Nature of Allegation 2009-10 2010-11 2011-12Costs/Bills 1,030 (31%) 838 (35%) 777 (32%)Negligence – including bad case handling 623 (19%) 369 (15%) 336 (14%)Dishonest/ Misled 152 (5%) 131 (5%) 163 (7%)Trust money – including failure to account, mismanagement of funds 169 (5%) 133 (5%) 134 (5%)Documents / Trust property – including retention and lost 134 (4%) 108 (4%) 130 (5%)Communication with client – including failure to return calls, give progress reports 171 (5%) 102 (4%) 99 (4%)Delays 76 (2%) 81 (3%) 87 (4%)Conflict of interest 125 (4%) 86 (4%) 86 (3%)Breach of Act, rules, court order or undertaking 139 (4%) 65 (3%) 76 (3%)Duress/ Pressure/ Intimidation 73 (2%) 66 (3%) 65 (3%)Instructions – including failure to comply 145 (4%) 92 (4%) 57 (2%)Debts – including practitioner’s failure to pay 26 (1%) 33 (1%) 54 (2%)Abusive/Rude 88 (3%) 60 (2%) 52 (2%)Costs communication – including failure to comply with s3.4.9; s3.4.10; s.3.4.16 of the Act 88 (3%) 33 (1%) 48 (2%)Gross overcharging 26 (1%) 17 (1%) 25 (1%)Communication with other party 21 (1%) 14 (1%) 16 (1%)Confidentiality breach 20 (1%) 11 (9%) 16 (1%)Court system 9 (1%) 5 (1%) 4 (1%)Sexual impropriety 1 (1%) 0 (--) 2 (1%)Advertising 3 (1%) 4 (1%) 1 (1%)Other disciplinary issues 162 (5%) 162 (7%) 174 (7%)Legal Services COMMISSIONER Annual Report 2012 83

Figure 33 Areas of law featured in new complaintsThe following table shows the areas of law that featured in new complaints. As with previous years, the areas of law thataffect individuals in their private capacity continued to attract the highest number of complaints: namely, family law andprobate and estate. Conveyancing also remains a high volume area.Area of Law 2009-10 2010-11 2011-12Family/Defacto 512 (23%) 443 (22%) 497 (25%)Probate & Estate 214 (10%) 201 (10%) 214 (11%)Conveyancing 197 (9%) 240 (12%) 174 (9%)Commercial 217 (10%) 171 (9%) 167 (8%)Criminal 115 (5%) 138 (7%) 118 (6%)Debt Collection 85 (4%) 74 (4%) 70 (4%)Personal Injury 76 (4%) 63 (3%) 67 (3%)Workers Compensation 87 (4%) 69 (3%) 64 (3%)Wills 59 (3%) 57 (3%) 64 (3%)Industrial Relations 39 (2%) 47 (2%) 56 (3%)Building 50 (2%) 48 (2%) 49 (2%)Motor Vehicle Repairs/Claims 18 (1%) 35 (2%) 35 (2%)Leasing 45 (2%) 46 (2%) 32 (2%)Crimes Compensation 22 (1%) 10 (1%) 29 (1%)Mortgages 36 (2%) 33 (2%) 27 (1%)Company 22 (1%) 34 (2%) 22 (1%)Planning 12 (1%) 12 (1%) 19 (1%)Immigration 17 (1%) 10 (1%) 14 (1%)Breach of Legal Profession Act/Regulations 26 (1%) 27 (1%) 10 (1%)Equal Opportunity 11 (1%) 9 (1%) 10 (1%)Body Corporate/Strata Title 0 (0%) 0 (0%) 9 (1%)Defamation 5 (1%) 20 (1%) 9 (1%)Insolvency 6 (1%) 13 (1%) 9 (1%)Taxation 9 (1%) 4 (1%) 8 (1%)Guardianship / Administration 33 (2%) 21 (1%) 7 (1%)Civil Liberties 11 (1%) 4 (1%) 6 (1%)Freedom of Information 0 (1%) 0 (0%) 6 (1%)Intellectual Property 7 (1%) 7 (1%) 6 (1%)Personal Injury – Motor Vehicle Accident 14 (1%) 9 (1%) 6 (1%)Environmental 0 (0%) 1 (1%) 2 (1%)Trade Practices 5 (1%) 2 (1%) 2 (1%)Banking 7 (1%) 6 (1%) 1 (1%)Other / Unsure 254 (12%) 130 (7%) 173 (9%)Total 2,211 1,984 1,98284 Legal Services COMMISSIONER Annual Report 2012

Figure 34 Complaints finalisedThe following table shows the number of complaints finalised by the LSC in 2011-12 by complaint type.Year Civil Disciplinary Mixed (Civil &Disciplinary)Total2011-12 892 (38%) 1,229 (54%) 183 (8%) 2,3042010-11 836 (32%) 1,322 (51%) 451 (17%) 2,6092009-10 455 (26%) 923 (51%) 418 (23%) 1,796Figure 35 Time taken to finalise complaintsThe following table shows the time taken to finalise complaints in 2011-12 compared with the time taken to finalise complaintsin previous years.Days since receipt of complaint

Figure 36 Outcomes of closed civil complaintsThe following table show the outcomes of the closed civil complaints.Civil complaint outcomes 2009-10 2010-11 2011-12LSC settled the civil dispute between lawyer & client (includes whereclient satisfied with lawyer’s response and withdrew complaint)LSC was unable to settle the civil dispute & partieswere advised of their right to apply to VCAT218 (48%) 473 (57%) 496 (55%)60 (13%) 132 (16%) 168 (19%)Complainant failed to lodge unpaid disputed costs 53 (11%) 48 (6%) 59 (6%)Complaint made out of time 27 (6%) 28 (3%) 33 (4%)Complaint involved costs dispute which exceeded $25,000 27 (6%) 38 (5%) 25 (3%)Complainant failed to provide further information when requested 9 (2%) 12 (1%) 8 (1%)Complaint made before (or subject of another complaint) 5 (1%) 1 (1%) 8 (1%)Complaint not one that the LSC has power to deal with(eg. matter has already been dealt with/should be dealt with by a court)18 (4%) 24 (3%) 18 (2%)Complaint lacked legal substance (etc) (eg. dispute already settled) 11 (2%) 38 (5%) 41 (5%)Lawyer had already issued debt collection proceedings 26 (6%) 40 (5%) 36 (4%)Lawyer deceased 0 1 (1%) 0Lawyer ill health or not able to be located 0 1 (1%) 0Total 455 836 892Figure 37 Outcomes of closed disciplinary complaintsThe following table show the outcomes of the closed disciplinary complaints.Disciplinary complaint outcomes 2009-10 2010-11 2011-12LSC formed view that VCAT likely to find lawyer guilty of a disciplinary breach 64 (7%) 152 (11%) 117 (9%)LSC formed view that VCAT unlikely to find lawyer guilty of a disciplinary breach 254 (28%) 338 (26%) 164 (13%)Lawyer struck off – not in the public interest, no further action taken s4.4.12B N/A N/A 22 (2%)Complainant satisfied with lawyer’s explanation & withdrew complaint 211 (23%) 333 (25%) 366 (29%)Complaint made out of time 5 (1%) 14 (1%) 18 (2%)Complaint made before (or subject of another complaint) 18 (2%) 15 (1%) 13 (1%)Complainant failed to provide further information when requested 75 (8%) 48 (4%) 30 (3%)Complaint lacked legal substance etc (eg. alleged conduct was not inappropriate) 104 (11%) 157 (12%) 165 (13%)Complaint about lawyer/client relationship andduties but made by third party (eg. not the client)LSC formed the view that complaint required no further investigation(eg. lawyer not obliged to accept instructions from complainant)Complaint not one that the LSC has power to deal with(eg. involves question of law and therefore should be dealt with by a court)26 (3%) 36 (3%) 51 (4%)67 (7%) 172 (13%) 193 (16%)89 (10%) 47 (4%) 68 (6%)Lawyer deceased 2 (1%) 1 (1%) 0Lawyer ill health or not located 8 (1%) 2 (1%) 2 (1%)Closed due to ongoing proceedings N/A 7 (1%) 20 (2%)Total 923 1,322 1,22986 Legal Services COMMISSIONER Annual Report 2012

Figure 38 Outcomes of closed mixed complaints – two outcomesThe following tables show the outcomes of the closed mixed complaints. Most mixed complaints have two outcomes –a disciplinary outcome and a civil outcome. However, some mixed complaints have only one outcome because, for example,the lawyer could not be located.Disciplinary outcomeLSC formed view that VCATlikely to find lawyerguilty of a disciplinary breachLSC formed view that VCATunlikely to find lawyerguilty of a disciplinary breachMixed Complaint – Two outcomesDISPUTERESOLVEDCivil OutcomeDISPUTE NOTRESOLVED WITHDRAWN SUMMARYDISMISSALOTHERTOTAL1 9 1 15 1 274 15 2 36 4 61Withdrawn 20 5 19 4 0 48Lawyer struck off – further actionnot in the public interest: s4.4.12B0 5 0 4 0 9Summary dismissal 8 3 0 11 2 24Total 33 37 22 70 7 169Note: In the above table the items identified as ‘other’ are mixed complaints where the complainant has failed to lodge the outstanding costs indispute and therefore that aspect of the complaint has been dismissed.Figure 39 Outcomes of Mixed Complaints – one outcomeGeneric outcomeMixed Complaint – One OutcomeTotal2009-10Total2010-11Total2011-12Lawyer ill health or not located 1 2 0Complaint made before (or subject of another complaint) 2 4 1Complainant failed to provide further information when requested 16 9 3Complaint made out of time (exceeded 6 years) 4 3 0Legal proceedings already on foot 18 9 5Complaint not one that the LSC has power to deal with 17 4 2Closed due to ongoing proceedings 0 2 3Total 58 33 14Figure 40 Alternative disciplinary actionsThe following table shows the number of alternative disciplinary actions taken by the LSC.(See page 20 for an explanation of alternative disciplinary actions).Alternative Disciplinary Actions 2009-10 2010-11 2011-12LSC reprimanded lawyer 30 67 57LSC cautioned lawyer 9 9 6Lawyer found generally competent and diligent and so no further action 27 44 14LSC asked lawyer to pay compensation 2 9 7Total 68 129 84Legal Services COMMISSIONER Annual Report 2012 87

Figure 41 Disciplinary applications to VCATThe following table shows the number of disciplinary applications made to VCAT in 2011-12. The LSC made 28 new applicationsto VCAT in this period.Disciplinary applicationsunder Legal Profession Act 2004Heard byVCAT during2011-12Filed and yet to be heardand/or awaiting orders byVCAT as at 30 June 2012TotalDisciplinary applications made in 2011-12 8 20 28Disciplinary applications made in previous year(s) 21* 5 26TOTAL 29 25 54* This number includes one re-hearing matter that was finalised in 2011-12; and three disciplinary applications made under the former legislation,the Legal Practice Act 1996, that were also finalised in this period. A further three matters which were determined in the 2011-12 period are notincluded here as at 30 June 2012 they were on Appeal to the Court of Appeal of the Supreme Court of Victoria.Figure 42 Complaints outstandingThe following table shows the number of outstanding complaints oustanding as at 30 June 2012 by complaint type.Days since receipt of complaint

Figure 43 Disciplinary applications heard and determined in the reporting periodNo.VCATref.DateApplicationreferredHearingdate(s)Name oflegalpractitionerType of Charge(s)Finding(s)of VCATDate andOrdersmade1 J76/2010 26/07/2010 11/08/2011 MCNAMARA,MichaelMisconduct at commonlaw: acting in a positionof conflict of interest;further or alternativelyProfessional misconductUnsatisfactoryprofessionalconduct; Charge1 dismissed.11/08/2011 – untilpractitioner hasparticipated inworkshops orcourses re law ofsuccession andadministrationof deceasedestates generally,and/or ethicalissues in relationto conflicts ofinterest beingworkshops orcourses forwhich a total of 10CPD points havebeen allocated,he is not to actas the solicitorto an executorof a will or theadministrator of adeceased estate,or as the solicitorto a beneficiary ofa will save for theconduct of currentfiles in relation todeceased estateswhich he holdsthis day undersupervision;reprimanded; payLSC costs fixed at$25,000.2 J91/2010 27/09/2010 15/11/2011 &17/11/2011;16/05/2012NIXON,Paul WilliamProfessional misconductand Unsatisfactoryprofessional conduct:breach s3.3.14(1)(a) & (b) –without reasonable excusecausing a deficiency intrust account; failure topay or deliver trust money(x3); breach s3.3.28(6)of the regulations ands3.3.14(3) of the Act –failure to furnish trustaccount statement; breachs3.3.25(1) & (2) of theAct – failure to keep trustrecords in accordance withthe regulations; breachProfessional Conduct &Practice Rules 2005 (r39.1)– failure to communicateeffectively and promptly,and delay in attending tostamping of transfers;breach s86(1) and (3) of the1996 Act – failure to makeany costs disclosureProfessionalmisconduct;Unsatisfactoryprofessionalconduct16/5/2012 –not entitledto apply for alocal practisingcertificateauthorisinghim to practiceas a principalor authorisinghim to receivetrust moneyuntil 01/07/2017;undertake acourse in relationto conduct oftrust accountsas approved byLSB and providea certificateof completionprior to makingany applicationfor a practisingcertificateauthorising himto practice asa principal orauthorising himto receive trustmoney; pay LSCcosts fixed at$26,145.10Legal Services COMMISSIONER Annual Report 2012 89

No.VCATref.DateApplicationreferredHearingdate(s)Name oflegalpractitionerType of Charge(s)Finding(s)of VCATDate andOrdersmade3 J114/2010 8/11/2010 19/12/2011;20/12/2011BARTON,Phillip NunnBy agreement betweenthe parties Applicationamended. Misconduct atcommon law: gross breachof professional duty byengaging or participatingin a scheme designedto withhold payment ofdisbursement amounts(x2)Misconduct atcommon law19/01/2012&23/03/2012– practisingcertificatesuspended fornine months from01/05/2012 to31/01/2013; payLSC costs fixed at$16,666.664 J112/20108/11/2010 19/12/2011;20/12/2011COLDHAM,Michael RussellBy agreement betweenthe parties Applicationamended. Misconduct atcommon law: gross breachof professional duty byengaging or participatingin a scheme designedto withhold payment ofdisbursement amounts(x2)Misconduct atcommon law19/01/2012 &23/03/2012– practisingcertificatesuspended fornine months from01/05/2012 to31/01/2013; payLSC costs fixed at$16,666.665 J113/20108/11/2010 19/12/2011;20/12/2011BROOKES,Donald ErnestBy agreement betweenthe parties Applicationamended: Misconduct atcommon law: gross breachof professional duty byengaging or participatingin a scheme designedto withhold payment ofdisbursement amounts(x2)Misconduct atcommon law19/01/2012 &23/03/2012– practisingcertificatesuspended fornine months from01/052012 to31/01/2013; payLSC costs fixed at$16,666.666 J116/201012/11/2010 12/10/2011;14/10/2011COLDHAM,Michael RussellBy agreement betweenthe parties Applicationamended. Professionalmisconduct: not ceasingto act for clients incircumstances where heought to have done so dueto a conflict of interest;drafting a letter fordispatch to third partieswhich had the potential tomislead readers as to thebusiness arrangementsand interests of thoseclientsProfessionalmisconduct13/10/2011 –Reprimanded;fined $7,000; payLSC costs fixed at$3,0007 J10/201111/01/2011 11/07/2011 JOHNSTON,NeilProfessional misconduct:contravention of theProfessional Conduct &Practice Rules 2005 (r22.1)– releasing money inbreach of an undertakinggiven; Unsatisfactoryprofessional conduct– contravention r32.1A –obtaining a loan withoutwritten acknowledgementbeing obtained fromexecutor in form inschedule to the rulesProfessionalmisconduct andUnsatisfactoryprofessionalconduct11/07/2011 –Reprimanded;fined $2,000; payLSC costs fixed at$2,00090 Legal Services COMMISSIONER Annual Report 2012

No.VCATref.DateApplicationreferredHearingdate(s)Name oflegalpractitionerType of Charge(s)Finding(s)of VCATDate andOrdersmade8 J9/201111/01/2011 21/07/2011;23/01/2012McAULEY,MargaretProfessional misconduct:unauthorised receipt oftrust money; breach ofrule 1.2 of the ProfessionalConduct and PracticeRules 2005 – failure touse best endeavours tocomplete legal work assoon as was reasonablypossible; contraventionLegal Profession Act 2004(s4.4.11(1)(b)) – failure toprovide file and furtherinformation as requestedby LSCProfessionalmisconduct;Unsatisfactoryprofessionalconduct21/07/2011 – LSCcosts fixed at $311for DirectionsHearing.21/07/2011 –Reprimanded;fined $8,000;engage at ownexpense servicesof a personnominated orapproved by LSCto supervise thelaw practice(at least once amonth over periodof 12 months fromdate of Order); payLSC costs fixed at$14,532.209 J28/2011 2/03/2011 25/08/2011;16/01/2012IRVING,BrianCommon law misconduct:dishonestly preparingand acting upon a noticeof rescission knowing itto be without foundation;preparing and acting upona notice of rescissionknowing it to be withoutfoundation; applyingmoney held in his trustaccount as stakeholderin circumstances wherethere was no basis to do soCommon lawmisconduct;charge 1dismissed16/1/2012 –Reprimanded;fined $5,000; payLSC costs fixed at$17,324.5810 J43/2011 5/04/2011 25/10/2011 to27/10/2011NIKOLAIDOU,StevenBy agreement betweenthe parties applicationamended. Unsatisfactoryprofessional conduct –failure to give a concisewritten statement settingout matters required tobe provided under section86(1) and (3) of the 1996 ActUnsatisfactoryprofessionalconduct; Charges1, 2, 3 and 5are withdrawn.Charge 6 isdismissed31/10/2011–Reprimanded;fined $1,000; payLSC costs onparty party basison County CourtScale11 J64/2011 12/05/2011 17/10/2011 NGUYEN,Andrew MinhProfessional misconduct:failure to comply witha condition to whichpractising certificatesubject to (x2);contravention s 3.3.13(1)– failure to deposit trustmoney into Trust Accountas soon as practicable;contravention ofregulations 3.3.9(4) & (5)& (6) of Legal ProfessionRegulations 2005Professionalmisconduct;Unsatisfactoryprofessionalconduct10/11/2011:Not to applyfor a practisingcertificate fora period of 12months from20/10/2011;undertake over a12 month periodcourses relatingto a practitioner’sobligations andresponsibilitiesregarding thekeeping of trustaccounts and toacquire 10 CPDpoints; cannotre-engage inlegal practice onhis own accountunless he holdspractisingcertificate witha conditionrestricting himto an employeefor a period of atleast 12 months;pay LSC costs tobe agreed or if noagreement to betaxed by Registrarof the Tribunal.Legal Services COMMISSIONER Annual Report 2012 91

No.VCATref.DateApplicationreferredHearingdate(s)Name oflegalpractitionerType of Charge(s)Finding(s)of VCATDate andOrdersmade12 J72/2011 24/05/2011 20/01/2012 MAPOMBERE,WilbertProfessional misconductand Unsatisfactoryprofessional conduct:charging a contingencyfee; charging grosslyexcessive legal costs(x2); failure to deposittrust monies in a trustaccount and failureto discharge the lawpractice’s obligations inrelation to trust money(x2); misappropriatingtrust funds in breach ofthe Act and regulation3.3.34 of Legal ProfessionRegulations 2005;wilfully and/or recklesslybreaching a conditionof the practising certificate(x2)Professionalmisconduct;Unsatisfactoryprofessionalconduct20/01/2012 –Reprimanded;fined $5,000;practice to beconducted for aperiod of at least12 months subjectto the conditionpractitionernot authorisedto receivetrust money;if practitionerapplies fora practisingcertificate withauthority toreceive trustmoney, must firstcomplete 10 hoursof relevant legaleducation; payLSC costs fixedat $4,440.4013 J69/2011 24/05/2011 03/05/2012 DHANAPALA,SulaikaDilruksheenProfessional misconduct:unauthorised receiptof trust money; breachof r3.3.34(3) – cosigningcheques forFirst, Second, Thirdand Fourth withdrawaland consequentialmisappropriation of trustmoney; breach s3.4.29 –entering into a contingencyfee agreement andexacerbated by resultantcharging of grosslyexcessive legal costsProfessionalmisconduct andUnsatisfactoryprofessionalconduct23/05/2012 –Reprimanded;fined $1,000; payLSC costs fixed at$4,00014 J84/2011 29/06/2011 18/10/2011;14/11/2011MERCADER,FeUnsatisfactoryprofessional conduct:lodging and/or refusingto withdraw a caveatover land where legalpractitioner knew and/orought to have known nocaveatable interest, andproviding information tothe Registrar of Titles thatlegal practitioner oughtto have known was false;contravention ProfessionalConduct and PracticeRules 2005 (r18.4.2) –dealing directly withopponent’s clientUnsatisfactoryprofessionalconduct14/11/2011 –Reprimanded;undertakecourses for 10CPD points overnext 12 monthsin conveyancing,trusts and familylaw in addition tothose requiredto be undertakenunder the Act andRules; pay LSCcosts to be agreedor taxed on CountyCourt scale byCosts Court92 Legal Services COMMISSIONER Annual Report 2012

No.VCATref.DateApplicationreferredHearingdate(s)Name oflegalpractitionerType of Charge(s)Finding(s)of VCATDate andOrdersmade15 J90/2011 30/06/2011 19/03/2012 RUSHFORD,RobertProfessional misconductbeing misconduct atcommon law: failure toaccount for trust money;failure to comply with anOrder of the Tribunal madeunder the 1996 ActMisconductunder 1996 Act;Professionalmisconduct inrelation to thisapplication,J89/2011 andJ88/201107/06/2012– Practisingcertificate notto be grantedbefore 1 July2019; Practisingcertificateentitling to actas principal of apractice or holdtrust money notto be grantedbefore 1 July2022; Tribunalrecommendsto SupremeCourt that thepractitionername be removedfrom local roll ofpractitioners; payLSC costs fixed at$11,815.5016 J89/2011 30/06/2011 19/03/2012 RUSHFORD,RobertProfessional misconduct:engaging in legal practiceor representing qualifiedto engage in legal practicewhen not entitled to;receiving trust moneyafter ceasing to hold apractising certificate;contravention s182 of 1996Act and/or r 18 and/or 19of Trust Account PracticeRules 2003 – failure tomaintain trust records;contravention s184(1)of 1996 Act – failure tolodge trust account auditreports; contraventions185(1) of 1996 Act –failure to have recordskept under s192 auditedby an approved auditor;contravention s185(3)of 1996 Act – failure tolodge audit reports 60days after end of periodto which audit relates;contravention r 21Trust Account PracticeRules 2003 – failure toreconcile trust records;contravention s4.4.11(1)(a) of the Act – failure tocomply with a request for afull written explanation ofconductMisconduct;Professionalmisconduct(see J90/2011)7/06/2011 –Orders weremade under VCATreference J60 inno. 1517 J88/2011 30/06/2011 19/03/2012 RUSHFORD,RobertProfessional misconduct:contravention s188(1)(a) of 1996 Act – having adeficiency in trust account;contravention s174(3) of1996 Act – unauthorisedtransfer of trust money;contravention s4.4.11(1)(a) of the Act – failureto provide a full writtenexplanation of conductsubject of a disciplinarycomplaintMisconduct;Professionalmisconduct(see J90/2011)7/06/2011 –Orders weremade under VCATreference J60 inno. 15Legal Services COMMISSIONER Annual Report 2012 93

No.VCATref.DateApplicationreferredHearingdate(s)Name oflegalpractitionerType of Charge(s)Finding(s)of VCATDate andOrdersmade18 J91/2011 11/07/2011 31/08/2011 RITCHIE,KelliProfessional misconductat common law andwithin the meaning ofs4.4.3(1)(b) of the Act, inrespect of making falserepresentations to a thirdpartyMisconduct atcommon law31/08/2011 –Reprimanded; payLSC costs fixedat $4,591 andcomplainant costsfixed at $75019 J114/2011 08/09/2011 21/02/2012;29/03/2012WONG,JonathanBy agreement betweenthe parties the applicationis amended. Professionalmisconduct at commonlaw: executing and thensubmitting his 2007 &2008 declarations tothe Migration AgentsRegistration Authority, incircumstances when oughtto have known that thecontent of the declarationswere false (x2)Misconduct atcommon law29/03/2012 –Reprimanded;fined $15,000; payLSC costs fixed at$12,668.2020 J133/2011 3/10/2011 23/02/2012 LAMPLUGH,RodneyProfessional misconductat common law: purportingto witness signing of amortgage when the clientdid not sign the mortgagein his presence; purportingto witness the making of astatutory declaration whenthe client did not makestatutory declaration inhis presence; purportingto witness the signingof an acknowledgementwhen the client did notsign the acknowledgementin his presence; signingthe solicitors certificatecertifying matters thatwere not correct andknowing they were notcorrectMisconduct atcommon law05/03/2012:Reprimanded;fined $10,000; payLSC costs fixed at$4,183.9021 J141/2011 28/10/2011 19/12/2011;29/03/2012CANTWELL,DonaldProfessional misconduct:contravening r 14.1 and14.2 of the Rules – makingfalse and misleadingrepresentations andnot taking necessarysteps to correct therepresentations;contravening r 30 whereengaged in practicewhich was dishonestand calculated or likelyto a material degreeto be prejudicial toadministration of justice,diminish public confidencein administration of justice,adversely prejudicepractitioner’s ability topractice according to theRules; making and notcorrecting representationsmade to the court;Misconduct at commonlaw: failure to briefcounsel, procure fundingor adequate funding,adduce adequate evidenceto explain client’s absencefrom court and causingdelay in trial which causedinconvenience to court andfellow practitionersProfessionalmisconduct29/03/2012– Practisingcertificate iscancelled;no practisingcertificate to begranted before29/03/2013; payLSC costs fixed at$10,089.3094 Legal Services COMMISSIONER Annual Report 2012

No.VCATref.DateApplicationreferredHearingdate(s)Name oflegalpractitionerType of Charge(s)Finding(s)of VCATDate andOrdersmade22 J12/2012 18/01/2012 28/03/2012 JACKSON,GraemeMisconduct at commonlaw – making a falsedocument and using afalse document on sixseparate occasionsMisconduct atcommon law02/042012 –Reprimanded;fined $5,000; payLSC costs fixed at$3,552.9023 J13/2012 16/01/2012 19/03/2012;27/04/2012SPICEHANDLER,MarkMisconduct at commonlaw: in relation toemployment, submittingresume which containedfalse and incompleteemployment historyand personal detailsform which contained afalse denial; further oralternatively professionalmisconduct; engagingin legal practice incircumstances wherepractising certificate wasnot validProfessionalmisconduct14/05/2012 –Reprimanded; nolocal practisingcertificate begranted before27 April 2017; payLSC costs fixed at$5,935.9024 J28/2012 22/02/2012 07/05/2012;08/05/2012;09/05/2012OLDHAM,DanielMisconduct at commonlaw: by issuing andmaintaining proceedingswithout any or anyproper instructions todo so (x2); alternativelyprofessional misconductwithin s4.4.3(1)(b) (x2);alternatively professionalmisconduct within s4.4.3(1)(a) (x2); Not immediatelyor expeditiously removingthe named plaintiff inproceeding; alternativelyprofessional misconductwithin s4.4.3(1)(b);alternatively professionalmisconduct withins4.4.3(1)(a); Professionalmisconduct: by notknowing obligationson claimants andrepresentative plaintiffunder Supreme CourtAct (x2); alternativelyprofessional misconductwithin s4.4.3(1)(a)Professionalmisconduct;Misconduct atcommon law.6 x Chargeswithdrawn30/05/2012 –Reprimanded; topractice only inareas of buildinglaw, constructionlaw, propertylaw and ownerscorporation lawfor a period oftwo years fromthis date; payLSC costs fixed at$30,00025 J1/2012 04/01/2012 07/03/2012;26/04/2012DWYER,PatrickProfessional misconduct:failure to deposit moniesinto trust account, withoutreasonable excuse causinga deficiency in the trustaccount; Misconduct atcommon law: creatingand signing falsedocuments, during thecourse of an investigationmisleading the LegalServices Commissioner;UnsatisfactoryProfessional misconduct:failing to make any costsdisclosure to the clientProfessionalmisconduct;Unsatisfactoryprofessionalconduct26/06/2012 –Reprimanded;fined $40,000; payLSC costs fixed at$8,102.35Legal Services COMMISSIONER Annual Report 2012 95

Figure 44 Disciplinary applications referred to VCAT in the reporting period in which the application was awaitinghearing and/or determination as at 30 June 12No.DateApplicationreferredType of Charge(s)Status1 1/02/2011 Professional misconduct: failure to lodge a genuine document –creating and lodging a false document – failure to pay an amount toState Revenue Office for stamp duty, instead using amount for ownuse and benefit; alternatively professional misconduct as defined atcommon law2 1/02/2011 Professional misconduct: failure to lodge a genuine document –creating and lodging a false document – failure to pay an amount toState Revenue Office for stamp duty (x3); alternatively professionalmisconduct at common law (x3)3 4/03/2011 Professional misconduct: failure to use best endeavours to finalisethe administration of an estate as soon as reasonably possible4 4/03/2011 Professional misconduct: engaging in legal practice when not anAustralian legal practitioner (x2)5 15/04/2011 Professional misconduct: Unauthorised withdrawal of trust moneyin contravention of section 174(3) of the 1996 Act (x2); failure to notifyauditor of deficiency in contravention of rule 32 of the Trust AccountPractice Rules; having a deficiency in a trust account in contraventionof section 188(1) of the 1996 Act (x2), failure to keep a register ofinvestments and securities in contravention of rule 22, unauthoriseddepositing of trust money held for more than one person in a commonaccount in contravention of rule 45 and section 3.3.14(1) of the Act 2004;failure to notify of an irregularity in a trust account in contraventionof section 3.3.22(1) of the 2004 Act, failure to maintain a register ofinvestment of trust money regulation 3.3.30 of the Legal ProfessionRegulations; failure to keep trust account records adequately, failureto keep trust account records in a way that enabled records to beinvestigated and/or audited in contravention of section 182(2) of the1996 Act and s3.3.25(2)(c) of the 2004 Act (x2); failure to respond andproduce documents to a trust account inspector in contravention ofs3.3.45(1) of the Act6 6/10/2011 Professional misconduct: failure to avoid a conflict of interest therebybreaching r8.2; allowing an interest of an associate to conflict withinterest of his client thereby breaching r9.1.1; Misconduct at commonlaw: continuing to act notwithstanding that a material conflict of interesthad arisen; falsely executing and/or attesting to having witnessed theexecution of each of loan documents and a mortgage; representatingto another law practice that loan documents and mortgage had beenregularly executed in his presence, in circumstances where he knewthat representation to be false; gross breach of duty of candour byinstructing to send a letter the contents of which he knew to be false ormaterially misleading as to the true position (x5)Listed for an administrative mention on27 July 2012Listed for an administrative mention on27 July 2013Application made by practitioner to changeplea. Hearing listed for 9 July 2012Application made by practitioner to changeplea. Hearing listed for 9 July 2013Application made by practitioner to changeplea. Hearing listed for 9 July 2014Hearing listed for 27 August 201296 Legal Services COMMISSIONER Annual Report 2012

No.DateApplicationreferredType of Charge(s)Status7 10/10/2011 Professional misconduct: providing forged academic transcript andcurriculum vitae which made marks representations, knowing them tobe false and by doing so dishonestly obtained employment and therebya financial advantage by a deception (x5); further and alternativelymisconduct at common law; providing forged academic transcript andcurriculum vitae which made marks representations, knowing themto be false and by doing so sought to dishonestly obtain employmentand thereby a financial advantage by a deception (x5); further andalternatively misconduct at common law; Misconduct at common law:asking a person to act as referee and to state he remained employedby a firm, knowing this was false; in asking to act as referee while hewas not employed by that employer; dishonestly making during theinvestigation a statutory declaration which was false and he knewwas false8 13/10/2011 Misconduct at common law: in matters before the Supreme Courtof NSW intentionally or recklessly attempting to create a one sidedaccount, namely emphasising inquiries that yielded no or little usefulinformation, and not disclosing inquiries that had yielded somesignificant information; attempting to create a misleading impressionupon the Judge in the matter (x2)Hearing listed for 30 and 31 August 2012Hearing listed for 6 and 7 December 20129 13/10/2011 Misconduct at common law: in matters before the Supreme Courtin NSW intentionally or recklessly attempting to create a one sidedaccount, namely emphasising inquiries that yielded no or little usefulinformation, and not disclosing inquiries that had yielded somesignificant information; attempting to create a misleading impressionupon the Judge in the matter (x2)10 19/10/2011 Misconduct at common law: in affidavits, using language which couldvariously be described as intemperate, discourteous, vulgar, provocativeand/or offensive11 16/12/2011 Misconduct at common law: intentionally and recklessly attempted ordid mislead or deceive (x4); charging for professional fees on a basisother than on the basis which was contracted; Professional misconduct:contravening the Act or the Regulations or both; charging excessivelegal costs in connection with the practice of the law12 16/12/2011 Misconduct at common law: intentionally and recklessly breachingfiduciary duties; Professional misconduct – contravening the Act orRegulations or both (x5); charging excessive legal costs in connectionwith the practice of law; misappropriated and failed to account fortrust money13 21/12/2011 Professional misconduct: failure to use best endeavours to completelegal work contrary to r 1.2 of the Professional Conduct and PracticeRules 2005; failed to communicate effectively and promptly with theclient contrary to r 39.1 from January 2008 (x2); failed to provide fullwritten explanation of conduct re complaint in breach of s 4.4.11(1)(a)of the Act (x2); failure to obtain any or any proper instructions from theclient; rejecting the offer of comprise without obtaining any or properinstructions from the client to do soHearing listed for 6 and 7 December 2012Listed for Directions Hearing on 6 July 2012;and Hearing on 3, 4 and 5 September 2012Hearing listed for 22 August 2012Hearing listed for 22 August 2012Hearing listed for 2 August 2012Legal Services COMMISSIONER Annual Report 2012 97

No.DateApplicationreferredType of Charge(s)Status14 23/12/2011 Professional misconduct: contravention of r29.1 by allowing nameof firm to be used by a debt collection agency when lodging acivil complaint in the Magistrates Court using the electronic datainterchange system in a manner likely to mislead the public (x2);permitting or assisting an employee of a company who was not anAustralian lawyer to engage in legal practice; failure to ensure legalcosts for a proceeding were disclosed in writing to the client as requiredby s3.4.9 & 3.4.11 of the Act in contravention of r29.2.2; failure tomaintain direct control and supervision of proceedings in contraventionof r29.2.3(i) (x2)15 23/12/2011 Misconduct at common law: intentionally and recklessly attemptedor did mislead or deceive (x4); Professional misconduct: chargingexcessive legal costs in connection with the practice of law (x 2)16 23/12/2011 Misconduct at common law: intentionally and recklessly attempted ordid mislead or deceive (x3); charging for professional fees on a basisother than on the basis which was contracted; Professional misconduct– charging excessive legal costs in connection with the practice of law17 23/12/2011 Misconduct at common law: intentionally and recklessly attempted ordid mislead or deceive (x2); charged for professional fees on a basisother than on the basis which was contracted; Professional misconduct– failed to provide an itemised bill when requested contrary to section3.4.36(2) of the Act; charging excessive legal costs in connection withthe practice of law18 4/01/2012 Misconduct at common law: intentionally or recklessly attemptingto or did mislead or deceive (x3); failure to provide an itemised billwhen requested contrary to section 3.4.36(2) of the Act; charging forprofessional fees on a basis other than basis on which contracted;Professional misconduct: charging excessive legal costs in connectionwith the practice of law19 11/01/2012 Professional misconduct: charging excessive legal costs in connectionwith the practice of law; contravening the Act or the Regulations orboth; Misconduct at common law: charging for professional fees ona basis other than the basis on which contracted; sought approval toappropriate from the trust account in circumstances where all relevantinformation had not been disclosed; sought to obtain authorisation topay money from the trust account on account of costs of litigation incircumstances where the entitlement to do so was a live issue beforethe court on which judgement was reserved20 13/01/2012 Misconduct at common law: signing a name over the words “Guarantor’sSignature” on the Personal Guarantee and Equitable Charge and/orsigning on the commercial credit application and supply agreement,which in all circumstances was likely to create the false impressionthat that person had signed the documents; attesting to the signaturesof the clients on the personal guarantee and equitable charge in theknowledge that they did not sign the documents; in the alternativeprofessional misconduct (x2)Hearing listed for 19 September 2012Hearing listed for 22 August 2012Hearing listed for 22 August 2012Hearing listed for 22 August 2012Hearing listed for 22 August 2012Hearing listed for 22 August 2012Hearing adjourned to a date to be fixed98 Legal Services COMMISSIONER Annual Report 2012

No.DateApplicationreferredType of Charge(s)Status21 8/02/2012 Professional misconduct: failure to progress clients matters (x2);breach of the Act re withdrawals from trust account where eachwithdrawal gave rise to a breach by the law practice (s3.3.14(1)); furtheror alternatively by each withdrawal without reasonable excuse causeda deficiency in the trust account in the amount of that withdrawal onand from the date of that withdrawal and continuing, thereby breachings3.3.21(1)(a) (x2); Unsatisfactory professional conduct: failure tocommunicate promptly and effectively in contravention of r39.1; failureto furnish a trust account statement to client as soon as practicable(Regulation 3.3.28(6)(c)); Misconduct at common law: misleading clientas to true state of progress of matter; failure to make any payment offees to Counsel from settlement money in trust account expressly forthat purpose; further or alternatively failure to make payment for feesto Counsel from money sought and received from reimbursement frominsurer of clients employer (x2)22 7/05/2012 Unsatisfactory professional conduct: did not advise prior to thelodgement of caveat that several dealings had been lodged over thetitle to the property; Professional misconduct – breach of r8.2 of theProfessional Conduct and Practice Rules 2003 (“First 2003 Rules”), r8.2(“Second 2003 Rules”) and PCPR 2005 (“2005 Rules”) in failing to avoida conflict of interest between two or more clients; failure to re-lodgea caveat as instructed to do after registration of mortgage; breach ofr39.1 of the 2005 Rules, failure to communicate effectively and promptly;withdrawal of caveat mistakenly lodged with wrong names; but delayedin lodging caveat notifying of correct clients’ equitable charge overproperty23 10/05/2012 Professional misconduct: charging excessively for services andmisrepresenting the amount of charges for services; taking Executor’scommission without authorisation and in failing to make full disclosurewhen seeking consent to executor’s commission; taking executor’scommission when already charged the estate for executorial work;alternatively misconduct at common law (x3)24 6/06/2012 Professional misconduct: receiving trust money while not authorised todo so; depositing trust money directly into an office account in breach ofs3.3.13(1); failure to keep any trust records received by the law practice;failure to pay trust money without any reasonable excuse and in breachof s3.3.21(1)(b) of the Act25 28/06/2012 Professional misconduct: causing a deficiency in the trust account;contrary to r30.1.1 of the Professional Conduct and Practice Rules2005 acting dishonestly in assisting client to obtain an exemption fromduty on a transfer of land by encouraging and assisting him to makemisrepresentations to the SROHearing listed for 10 to 13 September 2012Hearing listed for 15 November 2012Hearing listed for 14 September 2012Directions Hearing listed for 26 July 2012Awaiting hearing dateLegal Services COMMISSIONER Annual Report 2012 99

Figure 45 Disciplinary applications referred to VCAT under the Legal Practice Act 1996(old Act) in which the application was heard and determined in the period 1/7/11 to 30/6/12No.VCATrefDateApplicationreferredHearingdate(s)Name oflegalpractitionerType of charge(s)Finding(s)of VCATDate andOrders made1 J47/2010 25/05/2010 13/8/2010;09/08/2011FAIGEN,DanielMisconduct: breachProfessional Conduct &Practice Rules 2003 – r 8.2,r 8.5.1, r 2.1 (x2) – conflictof interest and failing to actin clients’ best interests;further or alternativelyMisconduct at common lawStatutorymisconductandMisconduct atcommon law12/09/2011 – Fined$5,000; pay LSCcosts orderedagainst Kerilli PtyLtd on 17/8/2010such costs to be on aparty/party basis onCounty Court ScaleD, failing agreementto be assessed byCosts Court2 J87/2011 30/06/2011 19/03/2012 RUSHFORD,RobertMisconduct: contravention r23.2 of Professional Conductand Practice Rules 2003– failure to hand over filesdespite valid authoritiesbeing provided and no lienbeing claimed; contraventionr 30 Trust Account PracticeRules (TAPR) 2003 – failureto account for trust moneys;contravention r 31 TAPR2003 and s174 of 1996 Act –deducted money for costsfrom trust without firstrendering a bill of costs;Professional misconduct:– failure to comply with anOrder of the Tribunal madeunder the 1996 ActMisconductunder1996 Act;Professionalmisconduct(see entry forJ90/2011)7/06/20113 J86/2011 30/06/2011 19/03/2012 RUSHFORD,RobertMisconduct: contraventions188(1)(b) of 1996 Act –failure, without reasonableexcuse, to account for trustmoney; contravention r 30Trust Account Practice Rules2003 – failure to furnisha statement of account;Professional misconduct:failure to comply with anOrder of the Tribunal madeunder the 1996 ActMisconductunder1996 Act;Professionalmisconduct(see entry forJ90/2011)7/06/2011100 Legal Services COMMISSIONER Annual Report 2012

Figure 46 Re-hearing applications to VCAT determined in the period 01/07/2011 to 30/06/2012No.Date ofapplicationfor rehearingHearingdate(s)Name of legalpractitionerType of charge(s)Order made atre-hearing1 20-Jul-11 13/12/2011;30/01/2012LONG,Gerard PeterProfessional misconduct: engagingin conduct that led to becoming aninsolvent under administration;further and alternatively professionalmisconduct at common lawOrder made on 10 June 2011is affirmed: Order: Guilty ofProfessional misconduct; localpractising certificate suspendedfor period 04/07/2011 to03/11/2011; pay LSC costs agreedat $12,000Figure 47 Cases on appeal to the Court of Appeal, Supreme Court of VictoriaNo.Date VCATOrdersmadeDate ofApplicationName of legalpractitioner1 28/03/2012 24/04/2012 STIRLING,Mathew2 23/05/2012 18/06/2012 BRONDOLINO,Rose-Mary3 17/02/2012 30/04/2012 TURNER,Nigel MarkStatus at 30 June 2012Application by practitioner to the Court of Appeal for leave to appeal.Awaiting hearing dateApplication by practitioner to the Court of Appeal for leave to appeal.Awaiting hearing dateApplication by Legal Services Commissioner to the Court of Appeal forleave to appeal. Awaiting hearing dateLegal Services COMMISSIONER Annual Report 2012 101

appendix 01DelegationsUnder section 6.3.12 of the Legal Profession Act 2004, the LSC may delegate someof the functions of his office to an employee or to a prescribed person. The LIV and theBar are prescribed persons, as are the members of the Ethics Committee of the Bar.Current delegationsThe following table lists all of the delegations made by the LSC as in force at theend of 2011-12. This table includes delegations to internal and external persons.Figure 48 Delegations made under the Legal Profession Act 2004Date Delegate Functions delegated13 December2011ExecutiveDirector,Regulation &ComplaintsSection 3.3.44(2)Comply with request from trust account inspectorPart 4.1 – Introduction and ApplicationSection 4.1.4(3) – power to consent to conduct being dealt with under a corresponding lawSection 4.1.4 (5) – power to consent may be given conditionally or unconditionallyPart 4.2 – Making a ComplaintSection 4.2.7 – time limits for complaintsSection 4.2.8 – notification of a complaint to a law practice or an Australian legal practitionerSection 4.2.9 – requirement for further information from complainantSection 4.2.10 – power to summarily dismiss a complaintPart 4.3, Division 2 – Dealing with Civil ComplaintsSection 4.3.3 – lodgement of disputed costsSection 4.3.4 – dealing with lodged costsSection 4.3.5 – attempt to resolve civil disputeSection 4.3.5A(1) – prepare, certify and distribute settlement agreementSection 4.3.6 – notice where civil dispute is not likely to be resolved, or is unsuitable for resolutionSection 4.3.7 – notice where dispute resolution failsPart 4.3, Division 3 – MediationSection 4.3.9 – appointment of mediatorSection 4.3.13 – power to dismiss complaint where complainant fails to attend mediation, and requirement toprovide notice to complainant where law practice or Australian legal practitioner fails to attend mediationPart 4.3, Division 4 – Resolution of Civil Disputes by the TribunalSection 4.3.15 – notice about unresolved disputesPart 4.4, Division 3 – InvestigationsSection 4.4.7 – investigation of disciplinary complaintSection 4.4.8 – investigation without complaintSection 4.4.9 – referral of disciplinary complaint to prescribed investigatory body for investigationSection 4.4.10(3) – powers following receipt of a report from a prescribed investigatory bodySection 4.4.11 – power to require practitioner, law practice and others to provide information and documentsSection 4.4.12 – investigation to be conducted expeditiouslySection 4.4.13 – powers following investigation, including in relation to professional misconduct,unsatisfactory professional conductSection 4.4.14 – notice of decisionPart 4.4, Division 7 – Inter-jurisdictional provisionsSection 4.4.33 – request to another jurisdiction to investigate complaint or conductSection 4.4.34 – request from another jurisdiction to investigate complaint or conductSection 4.4.36 – co-operation with corresponding authoritiesPart 7.2 – General ProvisionsSection 7.2.14 – disclosure of information by local regulatory authoritiesSchedule 2, Part 6 – Disputes and DisciplineClause 6.1 – current disputes to continue to be dealt with in accordance with the Legal Practice Act 1996Clauses 6.2 – current complaints to be dealt with in accordance with the Legal Practice Act 1996Clause 6.3 – current investigations to be conducted in accordance with the Legal Practice Act 1996102 Legal Services COMMISSIONER Annual Report 2012

Date Delegate Functions delegated13 December2011Director,ProfessionalStandardsPart 3.3 – Trust Money and Trust AccountsSection 3.3.44(2) – comply with request from trust account inspectorPart 4.1 – Introduction and ApplicationSection 4.1.4(3) – power to consent to conduct being dealt with under a corresponding lawSection 4.1.4 (5) – power to consent may be given conditionally or unconditionallyPart 4.2 – Making a ComplaintSection 4.2.7 – accept a complaint made out of timeSection 4.2.8 – notification of a complaint to a law practice or an Australian legal practitionerSection 4.2.9 – requirement for further information from complainantSection 4.2.10 – power to summarily dismiss a complaintPart 4.3, Division 2 – Dealing with Civil ComplaintsSection 4.3.3 – lodgement of disputed costsSection 4.3.4 – dealing with lodged costsSection 4.3.5 – attempt to resolve civil disputeSection 4.3.5A(1) – prepare, certify and distribute settlement agreement.Section 4.3.6 – notice where civil dispute is not likely to be resolved, or is unsuitable for resolutionSection 4.3.7 – notice where dispute resolution failsPart 4.3, Division 3 – MediationSection 4.3.9 – appointment of mediatorSection 4.3.13 – power to dismiss complaint where complainant fails to attend mediation, and requirement toprovide notice to complainant where law practice or Australian legal practitioner fails to attend mediationPart 4.3, Division 4 – Resolution of Civil Disputes by the TribunalSection 4.3.15 – notice about unresolved disputesPart 4.4, Division 3 – InvestigationsSection 4.4.7 – investigation of disciplinary complaintSection 4.4.8 – investigation without complaintSection 4.4.9 – referral of disciplinary complaint to prescribed investigatory body for investigationSection 4.4.10(3) – powers following receipt of a report from a prescribed investigatory bodySection 4.4.11 – power to require practitioner, law practice and others to provide information and documentsSection 4.4.12 – investigation to be conducted expeditiouslySection 4.4.13 – powers following investigationSection 4.4.14 – notice of decisionPart 4.4, Division 7 – Inter-jurisdictional provisionsSection 4.4.33 – request to another jurisdiction to investigate complaint or conductSection 4.4.34 – request from another jurisdiction to investigate complaint or conductSection 4.4.36 – co-operation with corresponding authoritiesPart 7.2 – General ProvisionsSection 7.2.14 – disclosure of information by local regulatory authoritiesSchedule 2, Part 6 – Disputes and DisciplineClause 6.1 – current disputes to continue to be dealt with in accordance with the Legal Practice Act 1996Clauses 6.2 – current complaints to be dealt with in accordance with the Legal Practice Act 1996Clause 6.3 – current investigations to be conducted in accordance with the Legal Practice Act 1996Legal Services COMMISSIONER Annual Report 2012 103

Date Delegate Functions delegated13 December2011Manager,Complaints andResolutionsPart 3.3 – Trust Money and Trust AccountsSection 3.3.44(2) – comply with request from trust account inspectorPart 4.1 – Introduction and ApplicationSection 4.1.4(3) – power to consent to conduct being dealt with under a corresponding lawSection 4.1.4 (5) – power to consent may be given conditionally or unconditionallyPart 4.2 – Making a ComplaintSection 4.2.7 – accept a complaint made out of timeSection 4.2.8 – notification of a complaint to a law practice or an Australian legal practitionerSection 4.2.9 – requirement for further information from complainantSection 4.2.10 – power to summarily dismiss a complaintPart 4.3, Division 2 – Dealing with Civil ComplaintsSection 4.3.3 – lodgement of disputed costsSection 4.3.4 – dealing with lodged costsSection 4.3.5 – attempt to resolve civil disputeSection 4.3.5A(1) – prepare, certify and distribute settlement agreement.Section 4.3.6 – notice where civil dispute is not likely to be resolved, or is unsuitable for resolutionSection 4.3.7 – notice where dispute resolution failsPart 4.3, Division 3 – MediationSection 4.3.9 – appointment of mediatorSection 4.3.13 – power to dismiss complaint where complainant fails to attend mediation, and requirement toprovide notice to complainant where law practice or Australian legal practitioner fails to attend mediationPart 4.3, Division 4 – Resolution of Civil Disputes by the TribunalSection 4.3.15 – notice about unresolved disputesPart 4.4, Division 3 – InvestigationsSection 4.4.7 – investigation of disciplinary complaintSection 4.4.8 – investigation without complaintSection 4.4.9 – referral of disciplinary complaint to prescribed investigatory body for investigationSection 4.4.10(3) – powers following receipt of a report from a prescribed investigatory bodySection 4.4.11 – power to require practitioner, law practice and others to provide information and documentsSection 4.4.12 – investigation to be conducted expeditiouslySection 4.4.13(1) – powers following investigationSection 4.4.13(3)(b) – power to reprimand or caution practitionerSection 4.4.13(3)(c) – power to take no further actionSection 4.4.13(4) – power to require compensationSection 4.4.13(5) – obligation to take no further actionSection 4.4.13(6) – power to rely on recommendation in a report of a prescribed investigatory bodySection 4.4.14 – notice of decisionPart 4.4, Division 7 – Inter-jurisdictional provisionsSection 4.4.33 – request to another jurisdiction to investigate complaint or conductSection 4.4.34 – request from another jurisdiction to investigate complaint or conductSection 4.4.36 – co-operation with corresponding authoritiesPart 7.2 – General ProvisionsSection 7.2.14 – disclosure of information by local regulatory authoritiesSchedule 2, Part 6 – Disputes and DisciplineClause 6.1 – current disputes to continue to be dealt with in accordance with the Legal Practice Act 1996Clauses 6.2 – current complaints to be dealt with in accordance with the Legal Practice Act 1996Clause 6.3 – current investigations to be conducted in accordance with the Legal Practice Act 1996104 Legal Services COMMISSIONER Annual Report 2012

Date Delegate Functions delegated22 November2011Manager,Investigationsand RegulationPart 3.3 – Trust Money and Trust AccountsSection 3.3.44(2) – comply with request from trust account inspectorPart 4.1 – Introduction and ApplicationSection 4.1.4(3) – power to consent to conduct being dealt with under a corresponding lawSection 4.1.4 (5) – power to consent may be given conditionally or unconditionallyPart 4.2 – Making a ComplaintSection 4.2.7 – accept a complaint made out of timeSection 4.2.8 – notification of a complaint to a law practice or an Australian legal practitionerSection 4.2.9 – requirement for further information from complainantSection 4.2.10 – power to summarily dismiss a complaintPart 4.3, Division 2 – Dealing with Civil ComplaintsSection 4.3.3 – lodgement of disputed costsSection 4.3.4 – dealing with lodged costsSection 4.3.5 – attempt to resolve civil disputeSection 4.3.5A(1) – prepare, certify and distribute settlement agreement.Section 4.3.6 – notice where civil dispute is not likely to be resolved, or is unsuitable for resolutionSection 4.3.7 – notice where dispute resolution failsPart 4.3, Division 3 – MediationSection 4.3.9 – appointment of mediatorSection 4.3.13 – power to dismiss complaint where complainant fails to attend mediation, and requirement toprovide notice to complainant where law practice or Australian legal practitioner fails to attend mediationPart 4.3, Division 4 – Resolution of Civil Disputes by the TribunalSection 4.3.15 – notice about unresolved disputesPart 4.4, Division 3 – InvestigationsSection 4.4.7 – investigation of disciplinary complaintSection 4.4.8 – investigation without complaintSection 4.4.9 – referral of disciplinary complaint to prescribed investigatory body for investigationSection 4.4.10(3) – powers following receipt of a report from a prescribed investigatory bodySection 4.4.11 – power to require practitioner, law practice and others to provide information and documentsSection 4.4.12 – investigation to be conducted expeditiouslySection 4.4.13(1) – powers following investigationSection 4.4.13(3)(b) – power to reprimand or caution practitionerSection 4.4.13(3)(c) – power to take no further actionSection 4.4.13(4) – power to require compensationSection 4.4.13(5) – obligation to take no further actionSection 4.4.13(6) – power to rely on recommendation in a report of a prescribed investigatory bodySection 4.4.14 – notice of decisionPart 4.4, Division 7 – Inter-jurisdictional provisionsSection 4.4.33 – request to another jurisdiction to investigate complaint or conductSection 4.4.34 – request from another jurisdiction to investigate complaint or conductSection 4.4.36 – co-operation with corresponding authoritiesPart 7.2 – General ProvisionsSection 7.2.14 – disclosure of information by local regulatory authoritiesSchedule 2, Part 6 – Disputes and DisciplineClause 6.1 – current disputes to continue to be dealt with in accordance with the Legal Practice Act 1996Clauses 6.2 – current complaints to be dealt with in accordance with the Legal Practice Act 1996Clause 6.3 – current investigations to be conducted in accordance with the Legal Practice Act 1996Legal Services COMMISSIONER Annual Report 2012 105

Date Delegate Functions delegated23 February201113 December2011Manager,Complaints andInvestigationsManager,AdministrativeServicesPart 3.3 – Trust Money and Trust AccountsSection 3.3.44(2) – comply with request from trust account inspectorPart 4.1 – Introduction and ApplicationSection 4.1.4(3) – power to consent to conduct being dealt with under a corresponding lawSection 4.1.4 (5) – power to consent may be given conditionally or unconditionallyPart 4.2 – Making a ComplaintSection 4.2.7 – accept a complaint made out of timeSection 4.2.8 – notification of a complaint to a law practice or an Australian legal practitionerSection 4.2.9 – requirement for further information from complainantSection 4.2.10 – power to summarily dismiss a complaintPart 4.3, Division 2 – Dealing with Civil ComplaintsSection 4.3.3 – lodgement of disputed costsSection 4.3.4 – dealing with lodged costsSection 4.3.5 – attempt to resolve civil disputeSection 4.3.5A(1) – prepare, certify and distribute settlement agreement.Section 4.3.6 – notice where civil dispute is not likely to be resolved, or is unsuitable for resolutionSection 4.3.7 – notice where dispute resolution failsPart 4.3, Division 3 – MediationSection 4.3.9 – appointment of mediatorSection 4.3.13 – power to dismiss complaint where complainant fails to attend mediation, and requirement toprovide notice to complainant where law practice or Australian legal practitioner fails to attend mediationPart 4.3, Division 4 – Resolution of Civil Disputes by the TribunalSection 4.3.15 – notice about unresolved disputesPart 4.4, Division 3 – InvestigationsSection 4.4.7 – investigation of disciplinary complaintSection 4.4.8 – investigation without complaintSection 4.4.9 – referral of disciplinary complaint to prescribed investigatory body for investigationSection 4.4.10(3) – powers following receipt of a report from a prescribed investigatory bodySection 4.4.11 – power to require practitioner, law practice and others to provide information and documentsSection 4.4.12 – investigation to be conducted expeditiouslySection 4.4.13(1) – powers following investigationSection 4.4.13(3)(b) – power to reprimand or caution practitionerSection 4.4.13(3)(c) – power to take no further actionSection 4.4.13(4) – power to require compensationSection 4.4.13(5) – obligation to take no further actionSection 4.4.13(6) – power to rely on recommendation in a report of a prescribed investigatory bodySection 4.4.14 – notice of decisionPart 4.4, Division 7 – Inter-jurisdictional provisionsSection 4.4.33 – request to another jurisdiction to investigate complaint or conductSection 4.4.34 – request from another jurisdiction to investigate complaint or conductSection 4.4.36 – co-operation with corresponding authoritiesPart 7.2 – General ProvisionsSection 7.2.14 – disclosure of information by local regulatory authoritiesSchedule 2, Part 6 – Disputes and DisciplineClause 6.1 – current disputes to continue to be dealt with in accordance with the Legal Practice Act 1996Clauses 6.2 – current complaints to be dealt with in accordance with the Legal Practice Act 1996Clause 6.3 – current investigations to be conducted in accordance with the Legal Practice Act 1996Section 3.3.44(2)Comply with request from trust account inspectorSection 7.2.14Disclosure of information by local regulatory authorities106 Legal Services COMMISSIONER Annual Report 2012

Date Delegate Functions delegated10 January 2012 AssistantManager,Complaints andInvestigations10 January 2012 AssistantManager,DisputeResolution10 January 2012 AssistantManager,Investigationsand RegulationPart 3.3 – Trust Money and Trust AccountsSection 3.3.44(2) – comply with request from trust account inspectorPart 4.2 – Making a ComplaintSection 4.2.7(4) – accept costs dispute out of timeSection 4.2.8 – notification of a complaintSection 4.2.9 – requirement for further information from complainantPart 4.3 – Civil Complaints and DisputesSection 4.3.3(2) – may waive requirement to lodge disputed costsSection 4.3.3(3) – dismiss costs dispute where costs not lodgedSection 4.3.5(1) – attempt to resolve a civil disputeSection 4.3.5(3) – may require legal practitioner or law practice to provide relevant documentsSection 4.3.5A(1) – prepare, certify and distribute settlement agreementSection 4.3.7 – notice where dispute resolution failsPart 4.4 – Disciplinary Complaints and DisciplineSection 4.4.7– investigation of disciplinary complaintSection 4.4.9(1) – referral of disciplinary complaint to prescribed investigatory body for investigationSection 4.4.9(2) – what the referral may includeSection 4.4.9(3) – extend date for report by PIBSection 4.4.9(4) – the Commissioner may give directions or further directionsSection 4.4.11 – practitioner, law practice and others to provide information and documentsPart 7.2 – General ProvisionsSection 7.2.14 – disclosure of information by local regulatory authoritiesPart 3.3 – Trust Money and Trust AccountsSection 3.3.44(2) – comply with request from trust account inspectorPart 4.2 – Making a ComplaintSection 4.2.7(4) – accept costs dispute out of timeSection 4.2.8 – notification of a complaintSection 4.2.9 – requirement for further information from complainantPart 4.3 – Civil Complaints and DisputesSection 4.3.3(2) – may waive requirement to lodge disputed costsSection 4.3.3(3) – dismiss costs dispute where costs not lodgedSection 4.3.5(1) – attempt to resolve a civil disputeSection 4.3.5(3) – may require legal practitioner or law practice to provide relevant documentsSection 4.3.5A(1) – prepare, certify and distribute settlement agreementSection 4.3.7 – notice where dispute resolution failsPart 4.4 – Disciplinary Complaints and DisciplineSection 4.4.7– investigation of disciplinary complaintSection 4.4.9(1) – referral of disciplinary complaint to prescribed investigatory body for investigationSection 4.4.9(2) – what the referral may includeSection 4.4.9(3) – extend date for report by PIBSection 4.4.9(4) – the Commissioner may give directions or further directionsSection 4.4.11 – practitioner, law practice and others to provide information and documentsPart 7.2 – General ProvisionsSection 7.2.14 – disclosure of information by local regulatory authoritiesPart 3.3 – Trust Money and Trust AccountsSection 3.3.44(2) – comply with request from trust account inspectorPart 4.2 – Making a ComplaintSection 4.2.7(4) – accept costs dispute out of timeSection 4.2.8 – notification of a complaintSection 4.2.9 – requirement for further information from complainantPart 4.3 – Civil Complaints and DisputesSection 4.3.3(2) – may waive requirement to lodge disputed costsSection 4.3.3(3) – dismiss costs dispute where costs not lodgedSection 4.3.5(1) – attempt to resolve a civil disputeSection 4.3.5(3) – may require legal practitioner or law practice to provide relevant documentsSection 4.3.5A(1) – prepare, certify and distribute settlement agreementSection 4.3.7 – notice where dispute resolution failsPart 4.4 – Disciplinary Complaints and DisciplineSection 4.4.7– investigation of disciplinary complaintSection 4.4.9(1) – referral of disciplinary complaint to prescribed investigatory body for investigationSection 4.4.9(2) – what the referral may includeSection 4.4.9(3) – extend date for report by PIBSection 4.4.9(4) – the Commissioner may give directions or further directionsSection 4.4.11 – practitioner, law practice and others to provide information and documentsPart 7.2 – General ProvisionsSection 7.2.14 – disclosure of information by local regulatory authorities24 January 2012 Manager, Policy Section 7.2.14Disclosure of information by local regulatory authoritiesLegal Services COMMISSIONER Annual Report 2012 107

Date Delegate Functions delegated24 January 2012 Principal PolicyOfficer13 December201113 December2011InvestigationsOfficerAssistantInvestigationsOfficer3 March 2010 DisputeResolutionOfficer13 December201113 December2011AssistantDisputeResolutionOfficerConciliator20 April 2010 Law Instituteof Victoria Ltd20 April 2010 VictorianBar Inc20 April 2010 Members ofthe EthicsCommittee ofthe VictorianBar IncSection 7.2.14Disclosure of information by local regulatory authoritiesPart 4.3 – Civil Complaints and Disputes4.3.5(1) – attempt to resolve civil disputePart 4.4 – Disciplinary Complaints and Discipline4.4.7 – investigate disciplinary complaintPart 4.3 – Civil Complaints and Disputes4.3.5(1) – attempt to resolve civil disputePart 4.4 – Disciplinary Complaints and Discipline4.4.7 – investigate disciplinary complaintPart 4.3 – Civil Complaints and Disputes4.3.5(1) – attempt to resolve civil disputePart 4.4 – Disciplinary Complaints and Discipline4.4.7 – investigate disciplinary complaintPart 4.3 – Civil Complaints and Disputes4.3.5(1) – attempt to resolve civil disputePart 4.4 – Disciplinary Complaints and Discipline4.4.7 – investigate disciplinary complaintPart 4.3 – Civil Complaints and Disputes4.3.5(1) – attempt to resolve civil disputePart 4.4 – Disciplinary Complaints and Discipline4.4.7 – investigate disciplinary complaintPart 4.3, Division 2 – Dealing with Civil ComplaintsSection 4.3.5(1) – must attempt to resolve civil disputeSection 4.3.5(3) – may require law practice or legal practitioner to provide relevant documents or informationSection 4.3.5A(1)(a) – prepare settlement agreementPart 4.3, Division 2 – Dealing with Civil ComplaintsSection 4.3.5(1) – must attempt to resolve civil disputeSection 4.3.5(3) – may require law practice or legal practitioner to provide relevant documents or informationSection 4.3.5A(1)(a) – prepare settlement agreementPart 4.3, Division 2 – Dealing with Civil ComplaintsSection 4.3.5(1) – must attempt to resolve civil disputeSection 4.3.5(3) – may require law practice or legal practitioner to provide relevant documents or informationSection 4.3.5A(1)(a) – prepare settlement agreement108 Legal Services COMMISSIONER Annual Report 2012

Delegations revoked or made redundantThere were five delegations revoked in 2011-12. The main reasons the delegations were revoked wasto consolidate and update the delegations. The revoked delegations are detailed in the following Table.Figure 49 Delegations that have become redundant under the Legal Profession Act 2004Date ofRevocationDate ofDelegation13 December 2011 30 July 2010 ExecutiveDirector,Regulation andComplaintsDelegate Functions Delegated Reason forRevocationSection 3.3.44(2)Comply with request from trust account inspectorPart 4.1 – Introduction and ApplicationSection 4.1.4(3) – power to consent to conduct being dealtwith under a corresponding lawSection 4.1.4 (5) – power to consent may be givenconditionally or unconditionallyPart 4.2 – Making a ComplaintSection 4.2.7 – time limits for complaintsSection 4.2.8 – notification of a complaint to a law practiceor an Australian legal practitionerSection 4.2.9 – requirement for further information fromcomplainantSection 4.2.10 – power to summarily dismiss a complaintPart 4.3, Division 2 – Dealing with Civil ComplaintsSection 4.3.3 – lodgement of disputed costsSection 4.3.4 – dealing with lodged costsSection 4.3.5 – attempt to resolve civil disputeSection 4.3.5A(1) – prepare, certify and distribute settlementagreementSection 4.3.6 – notice where civil dispute is not likely to beresolved, or is unsuitable for resolutionSection 4.3.7 – notice where dispute resolution failsPart 4.3, Division 3 – MediationSection 4.3.9 – appointment of mediatorSection 4.3.13 – power to dismiss complaint wherecomplainant fails to attend mediation, and requirementto provide notice to complainant where law practice orAustralian legal practitioner fails to attend mediationPart 4.3, Division 4 – Resolution of Civil Disputes by theTribunalSection 4.3.15 – notice about unresolved disputesPart 4.4, Division 3 – InvestigationsSection 4.4.7 – investigation of disciplinary complaintSection 4.4.8 – investigation without complaintSection 4.4.9 – referral of disciplinary complaint toprescribed investigatory body for investigationSection 4.4.10(3) – powers following receipt of a report froma prescribed investigatory bodySection 4.4.11 – power to require practitioner, law practiceand others to provide information and documentsSection 4.4.12 – investigation to be conducted expeditiouslySection 4.4.13 – powers following investigation, includingin relation to professional misconduct, unsatisfactoryprofessional conductSection 4.4.14 – notice of decisionPart 4.4, Division 7 – Inter-jurisdictional provisionsSection 4.4.33 – request to another jurisdiction toinvestigate complaint or conductSection 4.4.34 – request from another jurisdiction toinvestigate complaint or conductSection 4.4.36 – co-operation with correspondingauthoritiesPart 7.2 – General ProvisionsSection 7.2.14 – disclosure of information by local regulatoryauthoritiesSchedule 2, Part 6 – Disputes and DisciplineClause 6.1 – current disputes to continue to be dealt with inaccordance with the Legal Practice Act 1996Clauses 6.2 – current complaints to be dealt with inaccordance with the Legal Practice Act 1996Clause 6.3 – current investigations to be conducted inaccordance with the Legal Practice Act 1996Officere-structure,change of titleLegal Services COMMISSIONER Annual Report 2012 109

Date ofRevocationDate ofDelegation13 December 2011 3 March 2010 Director,ProfessionalStandards13 December 2011 24 March 2010 Director,ProfessionalStandardsDelegate Functions Delegated Reason forRevocationPart 3.3 – Trust Money and Trust AccountsSection 3.3.44(2) – comply with request from trust accountinspectorPart 4.2 – Making a ComplaintSection 4.2.7 – accept a complaint made out of timeSection 4.2.8 – notification of a complaint to a law practiceor an Australian legal practitionerSection 4.2.9 – requirement for further information fromcomplainantSection 4.2.10 – power to summarily dismiss a complaintPart 4.3, Division 2 – Dealing with Civil ComplaintsSection 4.3.3 – lodgement of disputed costsSection 4.3.4 – dealing with lodged costsSection 4.3.5 – attempt to resolve civil disputeSection 4.3.5A(1) – prepare, certify and distribute settlementagreement.Section 4.3.6 – notice where civil dispute is not likely to beresolved, or is unsuitable for resolutionSection 4.3.7 – notice where dispute resolution failsPart 4.3, Division 3 – MediationSection 4.3.9 – appointment of mediatorSection 4.3.13 – power to dismiss complaint wherecomplainant fails to attend mediation, and requirementto provide notice to complainant where law practice orAustralian legal practitioner fails to attend mediationPart 4.3, Division 4 – Resolution of Civil Disputes by theTribunalSection 4.3.15 – notice about unresolved disputesPart 4.4, Division 3 – InvestigationsSection 4.4.7– investigation of disciplinary complaintSection 4.4.8 – investigation without complaintSection 4.4.9 – referral of disciplinary complaint toprescribed investigatory body for investigationSection 4.4.10(3) – powers following receipt of a report froma prescribed investigatory bodySection 4.4.11 – power to require practitioner, law practiceand others to provide information and documentsSection 4.4.12 – investigation to be conducted expeditiouslySection 4.4.13(1) – powers following investigationSection 4.4.13(3)(b) – power to reprimand or cautionpractitionerSection 4.4.13(3)(c) – power to take no further actionSection 4.4.13(4) – power to require compensationSection 4.4.13(5) – obligation to take no further actionSection 4.4.13(6) – power to rely on recommendation in areport of a prescribed investigatory bodySection 4.4.14 – notice of decisionPart 4.4, Division 7 – Inter-jurisdictional provisionsSection 4.4.33 – request to another jurisdiction toinvestigate complaint or conductSection 4.4.34 – request from another jurisdiction toinvestigate complaint or conductSection 4.4.36 – co-operation with correspondingauthoritiesSchedule 2, Part 6 – Disputes and DisciplineClause 6.1– current disputes to continue to be dealt with inaccordance with the Legal Practice Act 1996Clauses 6.2 – current complaints to be dealt with inaccordance with the Legal Practice Act 1996Clause 6.3 – current investigations to be conducted inaccordance with the Legal Practice Act 1996Section 7.2.14Disclosure of information by local regulatory authoritiesOfficere-structure,change of titleOfficere-structure,change of title110 Legal Services COMMISSIONER Annual Report 2012

Date ofRevocationDate ofDelegation13 December 2011 22 September2010Delegate Functions Delegated Reason forRevocationManager,Complaints andResolutionsPart 3.3 – Trust Money and Trust AccountsSection 3.3.44(2) – comply with request from trust accountinspectorPart 4.1 – Introduction and ApplicationSection 4.1.4(3) – power to consent to conduct being dealtwith under a corresponding lawSection 4.1.4 (5) – power to consent may be givenconditionally or unconditionallyPart 4.2 – Making a ComplaintSection 4.2.7 – accept a complaint made out of timeSection 4.2.8 – notification of a complaint to a law practiceor an Australian legal practitionerSection 4.2.9 – requirement for further information fromcomplainantSection 4.2.10 – power to summarily dismiss a complaintPart 4.3, Division 2 – Dealing with Civil ComplaintsSection 4.3.3 – lodgement of disputed costsSection 4.3.4 – dealing with lodged costsSection 4.3.5 – attempt to resolve civil disputeSection 4.3.5A(1) – prepare, certify and distributesettlement agreement.Section 4.3.6 – notice where civil dispute is not likely to beresolved, or is unsuitable for resolutionSection 4.3.7 – notice where dispute resolution failsPart 4.3, Division 3 – MediationSection 4.3.9 – appointment of mediatorSection 4.3.13 – power to dismiss complaint wherecomplainant fails to attend mediation, and requirementto provide notice to complainant where law practice orAustralian legal practitioner fails to attend mediationPart 4.3, Division 4 – Resolution of Civil Disputesby the TribunalSection 4.3.15 – notice about unresolved disputesPart 4.4, Division 3 – InvestigationsSection 4.4.7 – investigation of disciplinary complaintSection 4.4.8 – investigation without complaintSection 4.4.9 – referral of disciplinary complaint toprescribed investigatory body for investigationSection 4.4.10(3) – powers following receipt of a report froma prescribed investigatory bodySection 4.4.11 – power to require practitioner, law practiceand others to provide information and documentsSection 4.4.12 – investigation to be conducted expeditiouslySection 4.4.13(1) – powers following investigationSection 4.4.13(3)(b) – power to reprimand or caution practitionerSection 4.4.13(3)(c) – power to take no further actionSection 4.4.13(4) – power to require compensationSection 4.4.13(5) – obligation to take no further actionSection 4.4.13(6) – power to rely on recommendation in areport of a prescribed investigatory bodySection 4.4.14 – notice of decisionPart 4.4, Division 7 – Inter-jurisdictional provisionsSection 4.4.33 – request to another jurisdiction toinvestigate complaint or conductSection 4.4.34 – request from another jurisdiction toinvestigate complaint or conductSection 4.4.36 – co-operation with correspondingauthoritiesPart 7.2 – General ProvisionsSection 7.2.14 – disclosure of information by localregulatory authoritiesSchedule 2, Part 6 – Disputes and DisciplineClause 6.1 – current disputes to continue to be dealt within accordance with the Legal Practice Act 1996Clauses 6.2 – current complaints to be dealt within accordance with the Legal Practice Act 1996Clause 6.3 – current investigations to be conductedin accordance with the Legal Practice Act 1996Officere-structure,change of titleLegal Services COMMISSIONER Annual Report 2012 111

Date ofRevocationDate ofDelegation13 December 2011 3 March 2010 Manager,AdministrativeServicesRedundant 3 September 2010 AssistantManager,Complaints andInvestigations13 December 2011 3 March 2010 AssistantManager,Complaints andInvestigations13 December 2011 24 March 2010 AssistantManager,Complaints andInvestigations13 December 2011 28 June 2010 AssistantManager,Complaints andInvestigations10 January 2010 13 December2011Delegate Functions Delegated Reason forRevocationAssistantManager,Complaints andInvestigationsSection 3.3.44(2)Comply with request from trust account inspectorSection 7.2.14Disclosure of information by local regulatory authoritiesPart 3.3 – Trust Money and Trust AccountsSection 3.3.44(2) – comply with request from trust accountinspectorPart 4.2 – Making a ComplaintSection 4.2.7(4) – accept costs dispute out of timeSection 4.2.8 – notification of a complaintSection 4.2.9 – requirement for further information fromcomplainantPart 4.3 – Civil Complaints and DisputesSection 4.3.3(2) – may waive requirement to lodge disputedcostsSection 4.3.3(3) – dismiss costs dispute where costs notlodgedSection 4.3.5(1) – attempt to resolve a civil disputeSection 4.3.5(3) – may require legal practitioner or lawpractice to provide relevant documentsSection 4.3.5A(1) – prepare, certify and distribute settlementagreementSection 4.3.7 – notice where dispute resolution failsPart 4.4 – Disciplinary Complaints and DisciplineSection 4.4.7– investigation of disciplinary complaintSection 4.4.9(3) – extend date for report by PIBSection 7.2.14Disclosure of information by local regulatory authoritiesSection 4.4.11Power to require practitioner, law practice and others toprovide information and documentsPart 3.3 – Trust Money and Trust AccountsSection 3.3.44(2) – comply with request from trust accountinspectorPart 4.2 – Making a ComplaintSection 4.2.7(4) – accept costs dispute out of timeSection 4.2.8 – notification of a complaintSection 4.2.9 – requirement for further information fromcomplainantPart 4.3 – Civil Complaints and DisputesSection 4.3.3(2) – may waive requirement to lodge disputedcostsSection 4.3.3(3) – dismiss costs dispute where costs notlodgedSection 4.3.5(1) – attempt to resolve a civil disputeSection 4.3.5(3) – may require legal practitioner or lawpractice to provide relevant documentsSection 4.3.5A(1) – prepare, certify and distribute settlementagreementSection 4.3.7 – notice where dispute resolution failsPart 4.4 – Disciplinary Complaints and DisciplineSection 4.4.7– investigation of disciplinary complaintSection 4.4.9(1) – refer investigation to PIBSection 4.4.9(2) – referral detailsSection 4.4.9(3) – extend date for report by PIBSection 4.4.9(4) – power to give directions to PIBSection 4.4.11 – power to require practitioner, law practiceand others to provide information and documentsSection 7.2.14Disclosure of information by local regulatory authoritiesOfficere-structure,change of titleIdenticaldelegationmade on 13December 2011Officere-structure,change of titleOfficere-structure,change of titleOfficere-structure,change of titleAdditional powersre referringmatters to PIB112 Legal Services COMMISSIONER Annual Report 2012

Date ofRevocationDate ofDelegation13 December 2011 3 March 2010 AssistantManager, DisputeResolution10 January 2012 13 December2011Delegate Functions Delegated Reason forRevocationAssistantManager, DisputeResolution24 January 2012` 3 March 2010 Principal PolicyOfficer13 December 2011 3 March 2010 InvestigationsOfficer13 December 2011 7 March 2011AssistantInvestigationsOfficerPart 3.3 – Trust Money and Trust AccountsSection 3.3.44(2) – comply with request from trust accountinspectorPart 4.2 – Making a ComplaintSection 4.2.7(4) – accept costs dispute outside of timeSection 4.2.8 – notification of a complaintSection 4.2.9 – requirement for further information fromcomplainantPart 4.3 – Civil Complaints and DisputesSection 4.3.3(2) – may waive requirementto lodge disputed costsSection 4.3.3(3) – dismiss costs disputewhere costs not lodgedSection 4.3.5(1) – attempt to resolve a civil disputeSection 4.3.5(3) – may require legal practitioner or lawpractice to provide relevant documentsSection 4.3.5A(1) – prepare, certify and distribute settlementagreementSection 4.3.7 – notice where dispute resolution failsPart 4.4 – Disciplinary Complaints and DisciplineSection 4.4.7 – investigation of disciplinary complaintSection 4.4.9(3) – extend date for report by PIBPart 4.4 – Disciplinary Complaints and DisciplineSection 4.4.9(1) – refer investigation to PIBSection 4.4.9(2) – referral detailsSection 4.4.9(4) – power to give directions to PIBSection 7.2.14Disclosure of information by local regulatory authoritiesPart 4.3 – Civil Complaints and Disputes4.3.5(1) – attempt to resolve civil disputePart 4.4 – Disciplinary Complaints and Discipline4.4.7 – investigate disciplinary complaintPart 4.3 – Dealing with Civil ComplaintsSection 4.3.5(1) – attempt to resolve civil disputePart 4.4 – Disciplinary Complaints and DisciplineSection 4.4.7 – investigation of disciplinary complaintOfficere-structure,change of titleAdditional powersre referringmatters to PIBOfficere-structure,change of titleOfficere-structure,change of titleOfficere-structure,change of titleLegal Services COMMISSIONER Annual Report 2012 113

appendix 02Disclosure indexThe Annual Report of the LSC is prepared in accordance with all relevantVictorian legislation. This index has been prepared to facilitate identificationof the LSC’s compliance with the statutory disclosure requirements.Legislation Requirement Page ReferenceMinisterial DirectionsReport of operations – FRD GuidanceCharter and purposeFRD 22B Manner of establishment and the relevant Ministers 3FRD 22B Objectives, functions, powers and duties 3FRD 22B Nature and range of services provided 3Management and structureFRD 22B Organisational structure 31Financial and other informationFRD 8B Budget portfolio outcomes N/AFRD 10 Disclosure index 114-116FRD 12A Disclosure of major contracts N/AFRD 15B Executive officer disclosures 33, 77FRD 22B, Operational and budgetary objectives and performance against objectives 7-30FRD 22B Employment and conduct principles 34FRD 22B Occupational health and safety policy 34FRD 22B Summary of the financial results for the year 37FRD 22B Significant changes in financial position during the year 37FRD 22B Major changes or factors affecting performance NILFRD 22B Subsequent events NILFRD 22B Application and operation of Freedom of Information Act 1982 35FRD 22B Compliance with building and maintenance provisions of Building Act 1993 35114 Legal Services COMMISSIONER Annual Report 2012

Legislation Requirement Page ReferenceMinisterial DirectionsFRD 22B Statement on National Competition Policy 36FRD 22B Application and operation of the Whistleblowers Protection Act 2001 35FRD 22B Details of consultancies over $10,000 36FRD 22B Details of consultancies under $10,000 36FRD 22B Statement of availability of other information 37FRD 24C Reporting of officebased environmental impacts 39FRD 25A Victorian Industry Participation Policy disclosures 36FRD 29 Workforce Data disclosures 32SD 4.5.5 Risk management compliance attestation 38SD 4.2(g) General information requirements 3-42SD 4.2(j) Signoff requirements iiFinancial ReportFinancial statements required under Part 7 of the FMASD4.2(a) Statement of changes in equity 48SD4.2(b) Operating statement 46SD4.2(b) Balance sheet 47SD4.2(b) Cash flow statement 49Other requirements under Standing Directions 4.2SD4.2(c)Compliance with Australian accounting standardsand other authoritative pronouncements50-63SD4.2(c) Compliance with Ministerial Directions 50SD4.2(d) Rounding of amounts 51SD4.2(c) Accountable officer’s declaration 45SD4.2(f) Compliance with Model Financial Report 79Legal Services COMMISSIONER Annual Report 2012 115

Other disclosures as required by FRDs in notes to the financial statementsFRD 9A Departmental disclosure of administered assets and liabilities N/AFRD 11 Disclosure of ex gratia payments 76FRD 13 Disclosure of parliamentary appropriations N/AFRD 21A Responsible person and executive officer disclosures 76-77FRD 102 Inventories N/AFRD 103D Noncurrent physical assets 67-68FRD 104 Foreign currency N/AFRD 106 Impairment of assets 54FRD 109 Intangible assets 68FRD 107 Investment properties NILFRD 110 Cash flow statements 49FRD 112C Defined benefit superannuation obligations 51, 71FRD 113 Investments in subsidiaries, jointly controlled entities and associates NILFRD 114AFinancial Instruments – General Government Entities and public nonfinancialcorporations72-75FRD 119 Contributions by owners 48, 56, 76LegislationFreedom of Information Act 1982 35Building Act 1993 35Whistleblowers Protection Act 2001 35Victorian Industry Participation Policy Act 2003 36Financial Management Act 1994 45116 Legal Services COMMISSIONER Annual Report 2012

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Level 9, 330 Collins StreetMELBOURNE VICTORIA 3000GPO BOX 492MELBOURNE VICTORIA 3001Ausdoc: DX185ABN: 66 489 344 310Telephone: (03) 9679 80011300 796 344 (local call within Victoria)Fax: (03) 9679 8101Email: admin@lsc.vic.gov.auWebsite: www.lsc.vic.gov.au