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Hi Flatchatters, NSW
We have had a long standing legal conflict which has sent our building broke. There is a new committee that want to get rid of the old law firm that has been protracting the conflict. Can they sack a legal firm from a case in a resolution in a SC meeting and then have and EGM to vote for a new legal firm or do they have to go to an EGM to sack the original firm .
My advice was a committee can sack a legal firm even if the legal firm was voted on in and AGM. Then go to an EGM to vote for a new one. In order to convince the other owners I could use some advice here thanks.
- This topic was modified 2 weeks, 4 days ago by .
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Dear Whoopi,
I speak as a member of the legal profession. I suggest that, before you take action, you get an opinion from another lawyer to understand where your case is up to and what might be the costs and consequences of either engaging a new lawyer or abandoning the OC’s claim.
I think there’s a general principle that decisions made at a general meeting can only be unmade at a general meeting. However, unless their contract with the lawyer has specific terms for dismissal, there’s nothing to stop the committee identifying a replacement in advance and sacking the previous lawyers at the same general meeting as the owners appoint the new ones.
Can the committee chairman (supported by other members of the committee) send an email to sack a legal firm that has not been following the instructions?
There are two questions here.
1. Can a lawyer be sacked. Yes. The client can sack the lawyer at any time. You will need to pay out their outstanding bills in order to receive gour file , which you will need to for your next lawyer.
2. In a strata, who can sack the lawyer. In my opinion, and it’s sketchy, it’s usually through the committee that legal action is conducted. If the committee resolves that the lawyer is not progressing their matter competently, then the committee can sack them.
The standard agreement for lawyers is that they work on an hourly basis, and hen e can be sacked at any time
But changing lawyers mid stream is a risky move that the courts do not look on favourably as it disrupts the flow of proceedings.
I’m still not sure if a committee can validly overturn the decisions made by a general meeting. It flies in the face of the law that says owners at a general meeting can overturn the decisions of the committee. But I guess you’d find out pretty quickly when the committee tried to sack the lawyer.
Just to clarify (or maybe confuse), Section 103 of the Act says the provision of legal services has to be approved at a general meeting. Whether an EGM is required to discontinue those services is another matter.
In fact, you might argue that the legal services agreed on aren’t being discontinued, but they are simply being provided by another firm. Your new lawyers will surely advise.
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