Justin Carroll sacked for ‘serious misconduct’, says former law firm employer BlackBay

Justin Carroll was dismissed for ‘serious misconduct’, including anti-Semitic slurs to describe clients and ‘sexist and misogynistic’ language about female colleagues.

Former BlackBay Lawyers partner Justin Carroll, left, and Yianni Van Gelder.

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Former BlackBay Lawyers partner Justin Carroll was sacked by the firm for “serious misconduct”, including using anti-Semitic slurs to describe clients and using “sexist and misogynistic” language about female colleagues, court documents reveal.

On Tuesday the Federal Court released details of the defence filed by BlackBay Lawyers when Mr Carroll lodged a fair work action against the firm claiming he was unfairly cut out of work coming into the practice and was short-changed on his final pay.

Mr Carroll had previously opposed the release of the documents but abandoned the objection after The Australian published WhatsApp messages between himself and colleague Yianni van Gelder denigrating Jews and laughing at the “Holohoax” and the “Schlomo-caust”.

The anti-Semitic rantsstunned the Sydney legal establishment and prompted moves by the Executive Council of Australian Jewry to file a complaint to the NSW Legal Services Commissioner over the conduct of the two solicitors.

In further messages revealed by The Australian on Monday the pair called female colleagues “irrational” and prone to “snitching, backstabbing and rumour-mongering” with some remarks apparently aimed at BlackBay founder and managing partner Victoria-Jane Otavski.

BlackBay Lawyers' managing partner Victoria-Jane Otavski.

The trove of incriminating messages revealed that for months before leaving BlackBay, Mr Carroll, 54, and Mr van Gelder, 28, were plotting to set up a rival firm, allegedly taking clients and confidential information with them.

In one exchange, Mr van Gelder wrote: “Will start extracting data, templates and precedent letters from BlackBay this weekend too”, to which Mr Carroll responded: “Yeah, me too.”

“Yeah, just make sure you copy the files properly, onto a portable hard drive”, Mr van Gelder cautioned, before advising his colleague to “avoid leaving an email paper trail”.

In its defence released on Tuesday BlackBay alleges that Mr Carroll was using its resources to establish his new law firm and “further his personal interests during working hours”, while contacting the firm’s clients and encouraging them to defect to his new enterprise.

Mr Carroll was also diverting inquiries to his new firm, sending costs agreements (for legal fees) while still employed by BlackBay and trying to solicit another employee to become a partner in the new firm, the defence alleges.

Former BlackBay Lawyers partner Justin Carroll.

Mr Carroll was also copying and transferring precedents and client information onto external hard drives, the firm says.

BlackBay argues Mr Carroll is not entitled to keep the $25,000 advance he was given when he started with the firm and which he claims he was verbally told he did not have to pay back.

The firm has also launched a counter action against Mr Carroll and Mr van Gelder in the NSW Supreme Court for the return of confidential information and delivery of computers, phones and electronic devices for forensic analysis.

BlackBay is seeking to have Mr Carroll restrained from enticing any employee to leave the firm or soliciting its clients, and wants damages, or an account of profits, interest, costs and any other relief as deemed appropriate by the court.

Mr Carroll has previously told The Australian the WhatsApp messages were confidential and he intended to take legal action against the newspaper.

Mr van Gelder claimed the messages were “taken out of context, and were not intended to be taken seriously” but says that he was “sorry they have been published and have caused hurt and concern”.