Rahme v Satouris [2018] NSWSC 1753

Supreme Court New South Wales

Medium Neutral Citation: Rahme v Satouris [2018] NSWSC 1753 Hearing dates: 27, 28, 29, 30 August; 11 September 2018 Date of orders: 21 November 2018 Decision date: 21 November 2018 Jurisdiction: Common Law Before: Emmett AJA Decision: Judgment for the defendants, the plaintiffs are to pay the second and fourth defendants' costs of the proceedings. Catchwords: SOLICITORS NEGLIGENCE – BREACH OF CONTRACT – BREACH OF FIDUCIARY DUTY - whether the defendant solicitors owed the first plaintiff a fiduciary duty arising out of a solicitor and client relationship in circumstances where the defendants were providing the second plaintiff with legal advice relating to different proceedings which the first plaintiff later agreed to assume liability for and give security for – whether the defendants breached fiduciary obligations owing to the first plaintiff in entering into cost agreements with her and taking security over her property in respect of her liability under the cost agreements – whether the defendants gave negligently wrong advice as to the prospects of the proceedings which the first plaintiff later assumed liability for and gave security for - where the first plaintiff obtained independent legal advice before entering into the cost agreements and before agreeing to assume liability of the second plaintiff's proceedings – where there is no reason to doubt that the arrangements between the first plaintiff and the independent solicitor constituted a proper professional solicitor and client relationship - whether the defendants acted unconscionably - whether the first plaintiff executed the agreements as a result of the defendants exerting undue influence over her - loss - whether the plaintiffs suffered any loss or damage by reason of any wrongful conduct on the part of the defendants - proportionate liability - whether the independent solicitor or former solicitors were concurrent wrongdoers - contributory negligence - whether the first plaintiff contributed to her own loss Legislation Cited: Civil Liability Act 2002 (NSW) Competition and Consumer Act 2010 (Cth), Schedule 2 Contracts Review Act 1980 (NSW) Conveyancing Act 1919 (NSW) Corporations Act 2001 (Cth) Legal Profession Act 2004 (NSW) Legal Profession Uniform Law Application Act 2014 No 16 (NSW) Cases Cited: CGS and Co Pty Ltd v The Owners - Strata Plan No 5290 [2010] NSWSC 1173 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41 Law Society of NSW v Foreman (No 2) Pty Ltd (1994) 34 NSWLR 408 McKenzie v McDonald [1927] VLR 134 Owners Strata Plan 5290 v CGS & Co Pty Ltd [2011] NSWCA 168 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd (2004) 219 CLR 165 United Dominions Corporation Ltd v Brian Pty Ltd (1985) 157 CLR 1 Texts Cited: Heydon, Leeming and Turner, Meagher, Gummow & Lehane's Equity, Doctrines and Remedies, (5th ed, 2015, Lexis Nexus) Category: Principal judgment Parties: Dana Rahme (First Plaintiff) Gabriel Rahme (Second Plaintiff) Benjamin & Khoury Pty Ltd (Second Defendant) Dieb P Khoury (Fourth Defendant) Representation: Counsel: D A Allen (Plaintiffs) A R Zahra (Second and Fourth Defendants)