Richtoll Pty Ltd v WW Lawyers Pty Ltd (In Liquidation) [2016] NSWCA 308

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Richtoll Pty Ltd v WW Lawyers Pty Ltd (In Liquidation) [2016] NSWCA 308 Hearing dates: 26 October 2016 Decision date: 14 November 2016 Before: McColl JA at [1] Sackville AJA at [2] Barrett AJA at [89] Decision: 1. Appeal dismissed. 2. Appellants pay the respondent's costs of the appeal. Catchwords: PROFESSIONAL NEGLIGENCE – causation – solicitor breaches duty to client lending money at very high interest rates on the security of a second mortgage – solicitor fails to conduct search of ASIC Register prior to drawdown – solicitor fails to detect that receivers have been appointed to the borrower – whether primary Judge erred in concluding that the Lender would have proceeded even if it had known of the appointment of receivers Legislation Cited: Corporations Act 2001 (Cth), s 471B Civil Liability Act 2002 (NSW), ss 5D, 5E, 5O, 34, 35 Evidence Act 1995 (NSW), s 79 Cases Cited: A I McLean Pty Ltd v Hayson [2008] NSWSC 927 Badenach v Calvert [2016] HCA 18; (2016) 90 ALJR 610 Chappel v Hart (1998) 195 CLR 232; [1998] HCA 55 Hancock v East Coast Timber Products Pty Ltd (2011) 80 NSWLR 43; [2011] NSWCA 11 HG v The Queen (1999) 197 CLR 414; [1999] HCA 2 Richtoll Pty Ltd v WW Lawyers (In Liquidation) Pty Ltd [2016] NSWSC 438 Rosenberg v Percival (2001) 205 CLR 434; [2001] HCA 18 UGL Rail Pty Ltd v Wilkinson Murray Pty Ltd [2014] NSWSC 1959 Wallace v Kam (2013) 250 CLR 375; [2013] HCA 19 Texts Cited: D Byrne and J D Heydon, Lexis Nexis, Cross on Evidence (Australian Ed), Vol 1 Category: Principal judgment Parties: Richtoll Pty Ltd (First Appellant) Ongoing Financial Services Pty Ltd (Second Appellant) WW Lawyers Pty Ltd (In Liquidation) (Respondent) Representation: Counsel: A J Abadee; E W L. Anderson (Appellants) D A Priestley SC (Respondent)