BEGBIE v. MICHELL [2003] NSWCA 149

New South Wales Court of Appeal

CITATION : BEGBIE v. MICHELL [2003] NSWCA 149 HEARING DATE(S) : 23/10/02; 12/12/02 JUDGMENT DATE : 13 June 2003

JUDGMENT OF : Meagher JA at 1; Handley JA at 2; Beazley JA at 3 DECISION : Appeal dismissed with costs.

CATCHWORDS : Lease - option to purchase - valuation of property - rent capitalisation - existing use rights - Solicitor - whether negligent - Appeal - question of fact - Negligence - causation - 'but for' test Abalos v Australian Postal Commission (1990) 171 CLR 167 CASES CITED : March v Stramare (1991) 171 CLR 506 Barnes & Ors. v Hay (1988) 12 NSWLR 337 Stansbie v Troman [1984] 2 KB 48 PARTIES : Philip Begbie (Appellant) Michael Michell (Respondent) FILE NUMBER(S) : CA 40092/02 COUNSEL : W.H. Nicholas QC/M. T. McCulloch (Appellant) G. Sirtes (Respondent) SOLICITORS : David Geddes (Appellant) Mallesons Stephen Jaques (Respondent)

LOWER COURT District Court JURISDICTION : LOWER COURT DC6552/99 FILE NUMBER(S) : LOWER COURT Patten DCJ JUDICIAL OFFICER :

IN THE SUPREME COURT OF NEW SOUTH WALES COURT OF APPEAL CA 40092/02

MEAGHER JA HANDLEY JA BEAZLEY JA

13 June 2003 BEGBIE v. MICHELL

FACTS

A lease of premises, which had existing use rights as a veterinary clinic, also included an option to purchase. The lessee exercised the option. As the lessor and lessee could not agree on a purchase price, a valuation clause in the lease was invoked. Only one of the three valuers used a rent capitalisation basis to value the property.