Ex-Client?s Lawsuit, Bad Precedent for Lawyers

 
Ali Salmande, Jazmi Adlan Bohari
 
The ongoing dispute between Sumatra Partners LLC, a US-based investment company, and Ali Budiarjo Nugroho Reksodiputro (ABNR), an Indonesian law firm, has progressed to the examination of expert witnesses stage.
 
During a hearing last Tuesday, Sumatra brought forward Sugeng Teguh Santosa, Secretary of the Honorary Council of the Indonesian Advocates Association (PERADI). In his testimony, Mr. Santosa emphasized that when an ex-client files a lawsuit against its former legal counsel, this naturally sets a bad precedent for lawyers.
 
Mr. Santosa emphasized that if unsatisfactory work has been performed by a lawyer, a client may report the matter to the Honorary Council (Dewan Kehormatan) of PERADI. The Council will assess the matter and may take sanctions against the lawyer(s) in accordance with the advocates Code of Ethics, as set out under Articles 6 and 7 of Law No. 18 of 2003 on Advocates (Advocate Law).
 
“The Advocate Law clearly sets out the jurisdiction of the Honorary Council. Matters regarding lawyers should only be brought to the Honorary Council,” Mr. Santosa said.
 
Mr. Santosa further added that a lawyer who files a lawsuit against another lawyer’s work result is committing a violation to the Code of Ethics, as stated under Article 5 (c) of the Advocate Code of Ethics. This is necessary in order to keep the integrity of the bar association.
 
“A lawyer is obliged to maintain the dignity of the advocate community,” Mr. Santosa asserted.
 
On the counter side, ABNR brought Arbijoto, a former Supreme Court Justice, as an expert. Mr. Arbijoto explained the different characteristics and role of the court in general and PERADI’s Honorary Council.
 
In short, the court will assess whether what lawyers do is right or wrong from a legal perspective. Meanwhile, PERADI’s Honorary Council will assess whether or not the lawyers behavior is proper. He also emphasized that matters regarding the relationship between lawyers and clients should be decided by the Honorary Council.
 
The case between Sumatra versus ABNR dates back 2013, when Sumatra filed a lawsuit against the Indonesian law firm, and demanded USD 4 million in damages, along with sequestration of assets, in the South Jakarta District Court.
 
Sumatra is arguing that ABNR was negligent in providing information to Sumatra Partners LLC without properly confirming whether or not under a financing 12 trucks were registered on behalf of another creditor under a financing arrangement.
 
Sumatra Partners LLC further argues that the ABNR attorneys should have ensured the authenticity and lawfulness of the bank guarantee. It is also alleged that ABNR involved a foreign attorney in providing the disputed legal opinion, notwithstanding the clear prohibition against foreign lawyers providing legal opinions on Indonesian law.
 
The lawsuit has implicated 22 partners and advocates from ABNR including Mardjono Reksodiputro, Ricky S. Nazir, Ferry P. Madian, Emir Nurmansyah, Nafis Adwani, Rita Tyastuti Taufik, Agus Ahadi Derajdat, Woody Pananto, Chandrawati Dewi, Luky I Walalangi, Sahat M. Siahaan, Herry Nuryanto Kurniawan, Nurdin Adiwibowo, and Freddy Karyadi.
 
The other advocates allegedly involved and who also contributed to the disputed legal opinion related to the agreement between Sumatra Partners LLC and BKPL include Kevin Omar Sidharta, Oene J. Marseille, Gifty Pardede, Elsie Frieska Hakim, Fiesta Victoria, Michelle Putrie Manuhutu, Chirstine Hakim, dan Eva Fatimah Fauziah.
 
(hot/kc)