Solicitors' Liability Committee v Gray [1997] FCA 1627

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JUDGMENT No. LT? ap LOZT

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FEDERAL COURT OF AUSTRALIA

LEGAL PRACTITIONERS - professional duty - solicitor's professional indemnity insurance - the concept of a solicitor's professional legal practice contrasted with entrepreneurial and promotional activities undertaken by a solicitor - ordinary functions of a solicitor - activities of a solicitor having a professional character - the solicitor/client relationship - instructions from a client - dual activities of other professionals - the giving of "purely commercial" advice - ethical responsibilities of a lawyer in relation to law-related services - professionalism and the modern solicitor - whether retainer in relation to the acquisition of a kiwi fruit orchard was a retainer within the scope of practice as solicitors - whether liability incurred in the settlement of an action for damages arose in connection with the solicitors' practice - whether marketing or promotion of investments in the area of ° property syndication, in conjunction with accountants seeking investment and taxation advantages for clients, part of the practice of a solicitor - negotiations of agreements for the sale and purchase of land, plant and equipment - purchase at auction - arrangement of finance for the purchase - receipt by solicitor of an acquisition fee expressed as a percentage of the purchase price - recruitment of partners in a syndicate.

INSURANCE - construction of insurance policies - scope of indemnity - whether weight to be given to the statutory context, origins and rationale of a policy.

PROFESSIONAL INDEMNITY INSURANCE - indemnity for costs reasonably and necessarily incurred in proceedings arising out of a claim against the insured following settlement of the claim against the insured - application to set aside settlement - meaning of "necessarily".