The co-chair of SICAG has hit back at public statements made by Slater & Gordon over his removal from the CBA resolution scheme.
Legal firm Slater & Gordon relied on false information as the sole reason for refusing to continue to represent co-chair of Storm Investors Consumer Action Group (SICAG) Mark Weir and his wife, Weir has claimed.
In a confidential letter to the Weirs, Slater & Gordon indicated the only reason for refusing to act for the pair was because they were encouraging former Storm Financial (Storm) clients to lodge complaints with the Legal Services Commission.
The letter also stated that Weir's public statements were considered "inconsistent with the maintenance of a relationship of trust and confidence between solicitor and client".
Weir denies such claims.
"Slater & Gordon are yet to explain why they sacked Mrs Weir," a statement from Weir said.
He claims that instead of Slater & Gordon contacting them to explain the reason behind their sacking, Slater & Gordon Brisbane group practice leader Damian Scattini chose to release a media statement regarding Weir's removal from the Commonwealth Bank of Australia resolution scheme.
"It is very regrettable that Slater and Gordon (and Scattini) evidently think it is appropriate for solicitors to breach their duty of confidence to a client by commenting on private matters in the media. And, to add insult to injury, the reported statements were simply untrue," Weir said.
"Slater & Gordon's letter to me contained no such statements. Scattini did not even speak to me about the matter before he terminated my retainer. Slater & Gordon seem to think they are beyond criticism - even private criticism by clients. They speak more to the media than their clients."
Scattini was unavailable for comment.
Meanwhile, ASIC has entered into confidential compensation discussions with a number of parties involved in its investigations into the fall of Storm.
"These discussions involve complex commercial and legal issues and are likely to continue during June," an ASIC statement said.
In March, ASIC informed the market it would start confidential compensation discussions on behalf of former Storm clients.
The two non-consecutive alphabetic letters encountered most often last week caused more controversy than the underlying policy they represented, Wouter Klijn writes.... read more »
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