iii)
as a result, the Claimant’s claims are barred under the doctrine of unclean
hands and the agreement is contrary to Rule 1.8(a) of the Code and
unenforceable;
66.
Judge van Gestel’s report dealt with 2 points arising out of this. He said that “clean
hands” is an equitable doctrine that usually comes into play when equitable relief is
sought. That is not the situation which arises on the pleadings in this case. He then
turns to the Rule 1.8 claim – in fact Rule 1.18 since the former is a pleading error. The
court firstly determines whether there is a client/attorney relationship which: “may be
shown by an express contract, … or implied when (1) a person seeks advice or
assistance from an attorney, (2) the advice or assistance sought pertains to matters
within the attorney’s professional competence, and (3) the attorney expressly or
impliedly agrees to give or actually gives advice or assistance.”
67.
He was then asked whether a violation of Code 1.18 would render the contract void or
unenforceable. His categorical answer was “No”, on the basis that this would be
decided by the Board of Bar Overseers and is not determined or enforceable by the
court. He said that it may be evidence of negligence. He was then asked by the
Defendants if, “Absent the Code” if the contract would be rendered void or
unenforceable under the Law of Massachusetts if the terms were unfair or
unreasonable, were not fully disclosed to the client in a manner that could be
understood by the client or a failure to advise the client to seek independent advice.
Judge van Gestel’s answer was based on the premise that an attorney/client
relationship was found. His response was that an attorney’s contract with his client
may be rendered void or unenforceable if the terms were found to be unreasonable or
the terms were not fully disclosed to the client in a manner that could be fully
understood or the client not advised to obtain independent advice. No particulars were
given of the circumstances in which Massachusetts law would render an agreement
void or unenforceable.
68.
The problem for the Defendants is they do not plead that the contract is void or
unenforceable on general legal grounds, but rely either on the doctrine of unclean
hands (which does not apply in this case for reasons given by Judge van Gestel and
set out above) or on the alleged breach of the Code. There is no other case pleaded. It
is not therefore open to the Defendants to run this point. In any event, it would have
been extremely unfair on the Claimant to allow an amendment to plead the new case.
Judge van Gestel’s response can be compared to a response by an English lawyer to
the question: “Can a party to a contract set aside a contract on the grounds of undue
influence where the other party is his solicitor?”. The answer “maybe” (which is in
effect what Judge van Gestel is saying) goes nowhere near providing evidence of the
circumstances in which such a claim might be made. The Claimant has had no notice
of the claim and, in the light of Judge van Gestel’s previous categorical response,
would not have expected to meet such a claim at trial. Therefore, the Code 1.18 (in
whatever form) does not arise in this case.
69.
In any event, the evidence is overwhelming that there was no client/attorney
relationship because the 3-stage test set out by Judge van Gestel is not satisfied:
i)
In evidence the First Defendant, who played the lead role on the Defendants’
side in the negotiations, accepted that he had not sought any legal advice from
the Claimant;