Victorian Supreme Court Justice John Dixon found the conduct of solicitor Anthony Zita, who was listed as acting for debenture holders in a class action, amounted to a “gross dereliction of his obligations to the administration of justice”.
The scheme to recover excessive legal fees from the class action settlement was described by Justice Dixon as one of the ‘‘darkest chapters’’ in the state’s legal history last October when he ordered $11.7 million in compensation be paid to Banksia’s receivers, which would ultimately be distributed to debenture holders.
Justice Dixon also ordered that lawyers Norman O’Bryan SC and Michael Symons be struck off the practice roll, while Anthony Zita and Alex Elliott will have to show cause at a later date as to why they should not be struck off.
In a separate judgment, Justice Dixon said Mr Zita was not a primary architect, but had enabled and “materially contributed to the opportunity”, and he was satisfied his right to practice should be suspended.
He said Mr Zita had breached the paramount duty by acting as a post-box solicitor, allowing lawyer Mark Elliott to effectively control the position of solicitor on the record for the plaintiff while also being the litigation funder.
Mr Zita was also found to have promoted a settlement distribution scheme that he had not read, did not understand, and could not competently undertake, and which sought to impose fees on group members that he had not scrutinised.
“Simply put, Mr Zita cannot be trusted to be fearlessly independent. He cannot be trusted to put the integrity of the administration of justice above all else, particularly personal or private interests,” Justice Dixon said in his judgment.
During the hearing Mr Zita apologised to the debenture holders for his “failure to prevent the shocking events that unfolded on his watch”.
Justice Dixon said Mr Zita still retained the sum of $375,683.30 in his trust account, which was being held pending execution of the judgment against him.
“I pause to note that there was no evidence that any sum had been paid towards the judgment debt by, or on behalf of, Mr Zita. The debenture holders have his apology but not his money,” Justice Dixon said.
