Pritchard v DJZ Constructions Pty Ltd & Ors; Gilles & Anor v DJZ Constructions Pty Ltd & Ors [2012] NSWCA 196

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Pritchard v DJZ Constructions Pty Ltd & Ors; Gilles & Anor v DJZ Constructions Pty Ltd & Ors [2012] NSWCA 196 Hearing dates: 21 and 22 February 2012 Decision date: 28 June 2012 Before: Bathurst CJ at [1] Whealy JA at [106] Barrett JA at [579] Decision: 1. Each appeal allowed in part. 2. In the event the parties are able to agree on orders to give affect to the conclusions reached in pars [101]-[102] of the Chief Justice's judgment, a draft form of orders should be delivered to the Chief Justice's Associate. 3. In the event the parties are unable to agree on the orders within 14 days, the proceedings are to be remitted to the trial judge for determination of the appropriate orders having regard to pars [101]-[102] of the Chief Justice's judgment. 4. The parties have liberty to file Notices of Motion seeking orders for costs of the appeal within 14 days of the date hereof. [Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.] Catchwords: PROFESSIONS AND TRADES - legal practitioners - professional negligence - breach of retainer - scope of duty - proof of loss or damage - causation - assessment of damages - advocate's immunity.

GUARANTEE AND INDEMNITY - discharge of surety - where security given for guaranteed obligations - whether later covenant affects security so as to discharge guarantors. Legislation Cited: - Civil Liability Act 2002 (NSW) - Pt 1A, s 5B, s 5D, s 5E, s 5O, s 34, s 35 - Civil Procedure Act 2005 (NSW) - S 98 - Corporations Act 2001 (Cth) - s 232, s 1305(1) - Law Reform (Miscellaneous Provisions) Act 1946 (NSW) - s 5 - Trade Practices Act 1974 (Cth) - Uniform Civil Procedure Rules 2005 (NSW) - Pt 42 Cases Cited: - Adeels Palace Pty Ltd v Moubarak [2009] HCA 48; 239 CLR 420 - Al-Kandari v J R Brown & Co [1988] QB 665 - Ankar Pty Ltd v National Westminster Finance (Australia) Ltd [1987] HCA 15; 162 CLR 549 - Bennett v Minister of Community Welfare [1992] HCA 27; 176 CLR 408 - Bond v Hongkong Bank of Australia Limited (1991) 25 NSWLR 286 - Capital Brake Service Pty Ltd v Meagher [2003] NSWCA 225 - Commonwealth v Amann Aviation Pty Ltd [1991] HCA 54;174 CLR 64 - Corbett Court Pty Ltd v Quasar Constructions (NSW) Pty Ltd [2008] NSWSC 1163 - Corumo Holdings Pty Ltd v C Itoh Ltd (1991) 24 NSWLR 370 - David v David [2009] NSWCA 8; (2009) Aust Torts Reports 91-993 - DJZ Constructions Pty Ltd v Pritchard [2010] NSWSC 1024 - DJZ Constructions Pty Ltd v Paul Pritchard [2010] NSWSC 1197 - DJZ Constructions Pty Ltd v Paul Pritchard [2010] NSWSC 1472 - Dominic v Riz [2009] NSWCA 216 - D'Orta-Ekenaike v Victoria Legal Aid [2005] HCA 12; 223 CLR 1 - Farrow Mortgage Services Pty Ltd (in liq) v Slade & Nelson (1996) 38 NSWLR 636 - FPM Constructions Pty Ltd v Council of the City of Blue Mountains [2005] NSWCA 147 - Graham Barclay Oysters Pty Limited v Ryan [2002] HCA 54; 211 CLR 540 - Hall v van der Poel [2009] NSWCA 436 - Hancock v Williams (1942) 42 SR (NSW) 252 - James Hardie & Co Pty Ltd v Wyong Shire Council [2000] NSWCA 107; 48 NSWLR 679 - Heenan v Di Sisto [2008] NSWCA 25 - Heydon v NRMA Ltd [2000] NSWCA 374; 51 NSWLR 1 - Hill v Van Erp [1997] HCA 9; 188 CLR 159 - Holme v Brunskill (1877) 3 QBD 495 - House v R [1936] HCA 40; 55 CLR 499 - Hughes v Western Australian Cricket Association (Inc) (1986) 8 ATPR 40-748 - Integrated Computer Services Pty Ltd v Digital Equipment Corp (Australia) Pty Ltd (1988) 5 BPR 11,110 - James v Surf Road Nominees Pty Ltd [2004] NSWCA 475 - Johnson v Perez [1988] HCA 64; 166 CLR 351 - Keefe v Marks (1989) 16 NSWLR 713 - Knight v FP Special Assets Ltd [1992] HCA 28; 174 CLR 178 - Kowalczuk v Accom Finance Pty Ltd [2008] NSWCA 343; 77 NSWLR 205 - Laresu Pty Ltd v Clark [2010] NSWCA 180; [2010] Aust Torts R 82-068 - Malec v JC Hutton Pty Ltd [1990] HCA 20; 169 CLR 638 - Moy v Pettman Smith [2005] UKHL 7; (2005) 1 WLR 581 - Murphy v Miller [1998] NSWCA 150 (BC9805397) - Mutual Life & Citizens Assurance Co Ltd v Evatt [1968] HCA 74; 122 CLR 556 - Nikolaou v Papasavas Phillips & Co (No 2) [1989] HCA 11; 166 CLR 394 - Norwest Refrigeration Services Pty Ltd v Bain Dawes (WA) Pty Ltd [1984] HCA 59; 157 CLR 149 - Perre v Apand Pty Ltd [1999] HCA 36; 198 CLR 180 - Polak v Everett (1876) 1 QBD 669 - Port Stephens Council v Theodorakakis [2006] NSWCA 70 - Reinhold v NSW Lotteries Corporation (No 2) [2008] NSWSC 187 - Roads and Traffic Authority (NSW) v Refrigerated Roadways Pty Ltd [2009] NSWCA 263 at [445]; 77 NSWLR 360 - Sellars v Adelaide Petroleum NL [1994] HCA 4; 179 CLR 332 - Strong v Woolworths Ltd [2012] HCA 5; 285 ALR 420 - Sussman and Anor v Symes and Ors (unrep 4 July 1994, McLelland CJ in Eq - Sydney South West Area Health Service v MD [2009] NSWCA 343 - Sykes v Midland Bank Executor & Trustee Co Ltd [1970] 2 All ER 471; [1971] 1 QB 113 - Tabet v Gett [2010] HCA 12; 240 CLR 537 - Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd [2004] HCA 52; 219 CLR 165 - Trident General Insurance Co Ltd v McNiece Bros Pty Ltd [1988] HCA 44; 165 CLR 108 - Valstar v Silversmith [2009] NSWCA 80 - Waimond Pty Ltd v Byrne (1989) 18 NSWLR 642 - Watkins v De Varda [2003] NSWCA 242 - WCW Pty Ltd v Bolster [1993] FCA (unrep) 06.01.1993 - Wilkinson v Daley [2004] NSWCA 331 - Williams v Frayne (1937) 58 CLR 710 - Woolcock Street Investments Pty Ltd v CDG Pty Ltd [2004] HCA 16; 216 CLR 515 - Wynn v New South Wales Insurance Ministerial Corporation [1995] HCA 53; 184 CLR 485 - Young v Commissioner of Taxation [2010] NSWSC 288 Texts Cited: - O'Donovan & Phillips - "The Modern Contract of Guarantee" - English Ed., 2010, p 500 - Rowlatt on Principle and Surety (4th Ed) Category: Principal judgment Parties: 2005/269375 Paul Pritchard t/as Pritchard Law Group (Appellant) DJZ Constructions Pty Ltd (First Respondent) Joseph John Gilles (Second Respondent) Gregory George Eliades (Third Respondent) David McGovern SC (Fourth Respondent) Vincent Palmieri (Fifth Respondent) Palmieri's Developments Pty Ltd (Sixth Respondent)