The country's biggest law firm has lost a legal battle to retrieve confidential documents being used to investigate one of its former partners.
Russell McVeagh McKenzie Bartleet and Co gave the documents to the Auckland District Law Society to help it investigate an allegation of improper conduct against the unnamed former
partner in the so-called bloodstock litigation.
But Justice Barry Paterson has refused in the High Court at Auckland to grant Russell McVeagh an order for the return of the documents. The legal action stemmed from complaints being investigated by the law society arising out of three bloodstock partnerships formed in the mid-1980s for investment purposes.
The former partner of Russell McVeagh acted as the promoter for the partnerships, which failed, resulting in long-running and complex legal action involving more than 300 plaintiffs. In 1996, Russell McVeagh made confidential settlements ending the proceedings without admission of liability.
The case before Justice Paterson followed complaints about the promotion of the bloodstock partnerships and the conduct of the bloodstock litigation being received by the law society from 1996 to 1998.
Russell McVeagh wished to cooperate in the investigation of its former partner, said Justice Paterson, and made an arrangement with the law society under which confidential information was passed to an individual counsel for one of its complaints committees. The current proceedings related to Russell McVeagh believing the law society had breached the arrangement.
Justice Paterson said the law society could use the confidential documents only for the purpose of the original investigation into the former partner and providing the information did not breach Russell McVeagh's privilege.
