CLGC Pty Limited v Zhang [2021] NSWSC 946

Supreme Court New South Wales

Medium Neutral Citation: CLGC Pty Limited v Zhang [2021] NSWSC 946 Hearing dates: 31 March; 1, 8, 9 April; further written submissions ending 4 May 2021 Date of orders: 30 July 2021 Decision date: 30 July 2021 Jurisdiction: Equity Before: Parker J Decision: See [203]-[207] Catchwords: LEGAL PROFESSION – civil liability – solicitor and client – incorporated legal practice – loans by plaintiff companies to individual principal of firm and company associated with him – borrowers unable to repay –purchase of interest in unit trust by way of equitable assignment – vendor remains registered owner of units and sells them for vendor's own benefit – scope of retainer – duty of care – fiduciary duty – liability of individual principal – claim against professional indemnity underwriter – whether liabilities of corporate solicitor or individual principal arose in the course of legal practice Legislation Cited: Competition and Consumer Act 2010 (Cth) Sch 2 – Australian Consumer Law, s 4 Legal Profession Uniform Law 2014 (NSW), ss 6, 33 Cases Cited: Australian Executor Trustees (SA) Ltd v Kerr [2021] NSWCA 5 Barnes v Addy (1874) LR 9 Ch App 244 Graham Barclay Oysters Pty Ltd v Ryan (2002) 211 CLR 540 Graham Barclay Oysters Pty Ltd v Ryan S258/2001 [2003] HCATrans 648 Malouf v Constantinou [2017] NSWSC 923 McCann v Switzerland Insurance Australia Ltd (2000) 203 CLR 579 Texts Cited: Heydon, J D, M J Leeming and P G Turner, Meagher, Gummow and Lehane's Equity Doctrines and Remedies (5th ed, 2015, LexisNexis Butterworths) Category: Principal judgment Parties: CLGC Pty Limited (First Plaintiff) CLGC Australia Pty Limited (Second Plaintiff) CLGC Investment Pty Limited (Third Plaintiff) CLGC Investment Holdings Pty Limited (Fourth Plaintiff) Ronglai (Martin) Zhang (First Defendant) W&H Lawyers Australia Pty Limited (Second Defendant) RZ Consulting Services Pty Limited (Third Defendant) WH Investment Holdings Pty Limited (Fourth Defendant) SEP Asset Management Pty Limited (Fifth Defendant) Smart Education Program Pty Limited (Seventh Defendant)