Middle East Trading v Nemes [2000] NSWSC 632

New South Wales Supreme Court

CITATION : Middle East Trading v Nemes [2000] NSWSC 632 FILE NUMBER(S) : SC 20173/96 HEARING DATE(S) : 17/08/99, 18/08/99, 19/08/99, 20/08/99, 23/08/99, 24/08/99, 25/08/99, 26/08/99, 27/08/99, 17/04/00, 18/04/00, 19/04/00 20/04/00, 27/04/00 JUDGMENT DATE : 14 July 2000

PARTIES : Middle East Trading Consultants Pty Limited v Steven Nemes and David Vaughan T/A Heaney, Richardson & Nemes JUDGMENT OF : James J

COUNSEL : R MacFarlan QC/P Durack - Plaintiffs D Davies SC - Defendants SOLICITORS : P A Somerset & Co - Plaintiffs Phillips Fox - Defendants DECISION : Verdict for the Plaintiffs

THE SUPREME COURT OF NEW SOUTH WALES COMMON LAW DIVISION

JAMES J

Friday 14 July 2000

20173/96 - Middle East Trading Consultants Pty Limited v Nemes & Anor

JUDGMENT 1 HIS HONOUR: This is an action for damages for professional negligence brought by Middle East Trading Consultants Pty Limited ("Metco") against its former solicitors Steven Nemes ("Mr Nemes") and David Vaughan ("Mr Vaughan") practicing as Heaney Richardson and Nemes ("HRN"). Between April 1992 and October 1993 HRN acted as solicitors for Metco in its dealings with Jesseron Holdings Pty Limited ("Jesseron"). At all material times Metco was controlled by Mr Mohammad Hassan Akhyani ("Mr Akhyani"). It was Mr Nemes who, for the most part, acted as Metco's solicitor, although occasionally Mr Vaughan acted as solicitor for Metco. Mr John William Beale ("Mr Beale") of Messrs Beale Gaertner Young acted as accountant for Metco. Between April 1992 and October 1993 (and at other times) Jesseron was controlled by Mr Geoffrey Pritchard. During this period Jesseron's solicitor was Mr David Ginges of Messrs Teakle Ormsby and Associates and a Mr Crick at times acted as accountant for Jesseron. 2 A very large amount of evidence was adduced in these proceedings. There were no fewer than nine affidavits by Mr Akhyani, made at various times between September 1996 and August 1999. Mr Akhyani's principal affidavit on liabilty was his affidavit of 27 September 1996. In addition to these affidavits by Mr Akhyani, there were affidavits on behalf of Metco by Mr Akhyani's wife, by Metco's bank manager Mr Dart, by Metco's current solicitor Mr Fordyce of Messrs P A Somerset & Co and by two solicitors Mr Linden and Mr Meagher who gave expert evidence. For the defendants there were affidavits by Mr Nemes, Mr Vaughan, Mr Beale, Mr Pritchard, Mr Donnelly who became the liquidator of Jesseron and by a solicitor Mr McCann who gave expert evidence. Apart from the affidavits and the annexures and exhibits to the affidavits, there was an agreed bundle of documents running to more than 650 pages. Oral evidence was given in the proceedings by Mr Akhyani, Mrs Akhyani and Mr Meagher and by Mr Nemes, Mr Beale, Mr Pritchard, Mr Donnelly and Mr McCann. I have taken all of this evidence into account but the evidence is so voluminous that I will refer specifically to only parts of it in this judgment. 3 At the hearing there was no dispute about a number of facts, many of which were proved by contemporaneous documents. It will be convenient to set out an outline of facts about which there was no dispute. It will also be convenient to include in this outline references to some matters about which there was dispute.