Rexstraw v Johnson [2003] NSWCA 287

New South Wales Court of Appeal

CITATION : Rexstraw v Johnson [2003] NSWCA 287 revised - 26/02/2004 HEARING DATE(S) : 11-13 August 2003 JUDGMENT DATE : 9 October 2003

JUDGMENT OF : Sheller JA at 1; Tobias JA at 2; Foster AJA at 148 DECISION : a) In CA 4093/02 appeal allowed, Johnsons to pay the costs of that appeal; b) In CA 40975/02 appeal dismissed with costs; c) In CA 40944/02 appeal on liability dismissed, but appeal as to contribution allowed in part. Provident and O'Sullivan to pay the investor's costs of this appeal but no order as to costs as between Provident/O'Sullivan and Rexstraw; d) Parties to be required within 14 days of the date of this judgment to bring in short minutes of order to reflect the findings in [146]. Parties at liberty to apply on 48 hours notice for further directions in the event of disagreement; e) The Registrar of the Court of Appeal to forward a copy of this judgment to the Law Society of New South Wales and the Legal Services Commissioner.; 4. Apportionment of responsibility as follows: Provident/O'Sullivan - 42.5%; Rexstraw - 33.5%; Johnsons - 24%.

CATCHWORDS : NEGLIGENCE - Professional responsibility - Scope of duty - Whether duty of care of mortgage broker coextensive with solicitor's duty of care - Whether director of company responsible for tortious acts of company - Apportionment of liability - FIDUCIARY DUTY - Scope of solicitor's fiduciary duty - Whether includes a duty to exercise reasonable care and skill - Whether a duty owed to principal solicitor by agent - TRADE PRACTICES - Whether statement that the valuation was "independent" was misleading - Trade Practices Act, s52. - ND Trade Practices Act, s52 LEGISLATION CITED : Copyright Act 1968 (Cth), s37 Law Reform (Miscellaneous Provisions) Act 1946, s5 Smith v Eric S Bush Ms Harris v Wyre Forrest District Council (1990) 1 AC 831 In re O'Brien deceased, (1971) 2 SASR 9 King V Milpurrurru (1996) 66 FCR 474 Microsoft Corporation v Auschina Polaris Pty Limited (1996) 71 FCR 231 Henley Arch Pty Limited v Clarendon Homes (Aust) Pty Limited (1998) 41 IPR 443 Microsoft Corporation v Goodview Electronics Pty Limited (2000) 49 IPR 578 McCallum & Co Pty Limited v Allen Manufacturing Co Pty Limited (2001) 52 IPR 550 Mortgage Express Limited v Bowerman & Partners (1996) 2 ALL ER 836 C A & M E C McInally Nominees Pty Limited v HTW Valuers (Brisbane) Pty Limited (2001) 188 ALR 439 Maguire v Makaronis (1997) 188 CLR 449 CASES CITED : O'Halloran v R T Thomas & Family Pty Limited (1998) 45 NSWLR 262 Target Holdings Limited v Redferns (1996) 1 AC 421 Hospital Products Limited v United States Surgical Corporation (1984) 156 CLR 41 at 68 Breen v Williams (1996) 186 CLR 71 McInerney v MacDonald (1992) 93 DLR (4th) 415 Chan v Zacharia (1984) 154 CLR 178 James v Mortgage Acceptance Nominees Limited (1996) 142 ALR 561 Podrebersek v Australian Iron & Steel (1985) 59 ALJR 492 Rolls Royce Industrial Power (Pacific) Limited v James Hardie & Co Pty Limited (2001) 53 NSWLR 626 Amaca Pty Limited v The State of New South Wales (2003) HCA 44 Westcoast Clothing Company Pty Limited v Freehill Hollingdale & Page (1999) Aust. Torts Reports 81-518 Hawkins v Clayton (1988) 164 CLR 539 PARTIES : Bruce Richard Rexstraw Raymond Keith Johnson FILE NUMBER(S) : CA 40975/02; 40944/02; 40943/02 For Johnson - Mr M McCulloch/Mr D F Villa COUNSEL : For O'Sullivan and Provident - Mr F Douglas QC/Ms R Sofroniov For Rexstraw - Mr D R Conti For Thirkettle & Ors - Mr I E Davidson For Johnson - P W Turk & Associates SOLICITORS : For O'Sullivan - The Argyle Partnership For Rexstraw - Phillips Fox For Thirkettle - Emil Ford & Co