Richtoll Pty Ltd v WW Lawyers (in Liquidation) Pty Ltd [2016] NSWSC 438

Supreme Court New South Wales

Medium Neutral Citation: Richtoll Pty Ltd v WW Lawyers (in Liquidation) Pty Ltd [2016] NSWSC 438 Hearing dates: 7.3.2016; 8.3.2016; 9.3.2016; 10.3.2016; 14.3.2016 Date of orders: 19 April 2016 Decision date: 19 April 2016 Jurisdiction: Common Law Before: Hoeben CJ at CL Decision: (1) Verdict and judgment for the defendant. (2) The plaintiffs are to pay the defendant's costs of these proceedings. Catchwords: LEGAL PRACTITIONERS – incorporated legal practice – duty to clients – whether general retainer in existence – terms of retainer – asserted breach of retainer – clients suffering large losses as a result of mortgage lending – torts – negligence – duty of care – whether duty of care included passing all information acquired onto clients – operation of s 5O Civil Liability Act 2002 (NSW) - duty and breach – whether duty extended to advising on valuation of security – whether solicitors should have carried out ASIC search shortly before draw down of loan to company borrower – causation – whether alleged breaches of duty and retainer caused loss – whether clients would have made loans regardless of breach of duty – causation not established - contributory negligence – proportionate liability of solicitors. Legislation Cited: Civil Liability Act 2002 (NSW) – ss 5B, 5D, 5E, 5O Cases Cited: Adeel's Palace Pty Ltd v Moubarak; Adeel's Palace Pty Ltd v Bou Najem [2009] HCA 48; 239 CLR 420 AJH Lawyers Pty Ltd v Hamo [2010] VSC 225 Astley v Austrust Ltd [1999] HCA 6; 197 CLR 1 Booksan Pty Ltd, Jaymay Constructions Pty Ltd v Wehbe, Elmir; GIO General Ltd & GIO Workers Compensation (NSW) Ltd v Webhe, Elmir [2006] NSWCA 3 Citycorp Australia Ltd v O'Brien (1996) 40 NSWLR 398 David v David [2009] NSWCA 8 Dobler v Kenneth Halverson; Dobler v Kurt Halverson (by his tutor) [2007] NSWCA 335; 70 NSWLR 151 Dominic v Riz [2009] NSWCA 216 Heydon v NRMA Ltd [2000] NSWCA 374; 51 NSWLR 1 Hunt & Hunt Lawyers v Mitchell Morgan Nominees Pty Ltd [2013] HCA 10; 247 CLR 613 Kayteal Pty Ltd v John Joseph Dignan [2011] NSWSC 197 Keddie v Stacks/Goudkamp Pty Ltd [2012] NSWCA 254 Kowalczuk v Accom Finance [2008] NSWCA 343; 77 NSWLR 205 Maes Finance Ltd, Mac No 1 Ltd v Sharp & Partners (a firm) [1999] EWHC Technology 209 Midland Bank Trust Co Ltd v Hett Stubbs & Kemp (A Firm) [1979] 1 Ch 384 Minkin v Landsberg (T/A Barnet Family Law) (2015) EWCA Civ 1152 Mortgage Express Ltd v Bowerman & Partners (a firm) [1996] 2 All ER 836 National Home Loans Corp plc v Giffen Couch & Archer (a firm) [1997] 3 All ER 808 Nationwide Building Society v Balmer Radmore (a firm) [1999] All ER (D) 95 Omega Trust Co Ltd v Wright Sun & Pepper (No 2) (1998) PNLR 337 Provident Capital Ltd v Papa [2013] NSWCA 36; 84 NSWLR 231 Rexstraw v Johnson [2003] NSWCA 287 Sydney South West Area Health Service v MD [2009] NSWCA 343 White v Illawarra Mutual Building Society Ltd [2002] NSWCA 164 Winnote Pty Ltd v Page [2006] NSWCA 287; 68 NSWLR 531 Zakka v Elias [2013] NSWCA 119 Category: Principal judgment Parties: Richtoll Pty Ltd – First Plaintiff Ongoing Financial Services Pty Ltd – Second Plaintiff WW Lawyers (In Liquidation) Pty Ltd - Defendant Representation: Counsel: Mr AJ Abadee/Mr EWL Anderson – Plaintiffs Mr DA Priestley SC - Defendant