Trajkovski v Simpson [2019] NSWCA 52

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Trajkovski v Simpson [2019] NSWCA 52 Hearing dates: 1 February 2019 Date of orders: 26 March 2019 Decision date: 26 March 2019 Before: Basten JA and Sackville AJA at [1]; Brereton JA at [58] Decision: (1) Appeal allowed. (2) Judgment of trial judge set aside. (3) In lieu thereof, judgment that defendants pay plaintiff $814,445.25 (inclusive of interest to date of trial judge's judgment). (4) Respondents to pay the appellant's costs at first instance and on appeal. Catchwords: NEGLIGENCE – professional negligence – legal practitioners – duty of care where solicitor represented husband in family law proceedings – where solicitor retained by husband to act on sale of jointly held property – whether there was a solicitor-client relationship between the solicitors and the wife, and therefore whether they owed her a duty of care

AGENCY – authority – ostensible authority – whether husband had wife's actual or ostensible authority to direct payment of proceeds of sale

TORT – negligence – concurrent liability – whether the husband was a concurrent wrongdoer, such as to reduce the solicitors' liability Legislation Cited: Civil Liability Act 2002 (NSW) ss 5D, 5O(1), 34(1)(a), 34(2), 35(1) Law Reform (Miscellaneous Provisions) Act 1965 (NSW) s 9 Legal Profession Act 1987 (NSW) s 57B Legal Profession Act 2004 (NSW) s 309(1) Legal Profession Uniform Law (NSW) s 174 Legal Profession Uniform Law Australian Solicitors' Conduct Rules 2015, r 11 Revised Professional Conduct and Practice Rules 1995 (NSW), rr 9.2, 9.3, 45 Trade Practices Act 1974 (Cth) s 51AB Cases Cited: Al-Kandari v J R Brown & Co [1988] QB 665 (CA) Badenach v Calvert (2016) 257 CLR 440; [2016] HCA 18 Bebonis v Angelos (2003) 56 NSWLR 127; [2003] NSWCA Craven v Official Trustee (2003) 127 FCR 217; [2003] FCAFC 26 Davies v Littlejohn (1923) 34 CLR 174; [1923] HCA 64 Ellison v Sandini Pty Ltd (2018) 354 ALR 484; [2018] FCAFC 44 Farrer v Copley Singletons [1997] EWCA Civ 2127 Feldman v GNM Australia Ltd [2017] NSWCA 107 Harris v Walker (1968) 14 FLR 167 Hawkins v Clayton (1988) 164 CLR 539; [1988] HCA 15 Heydon v NRMA Ltd (2000) 51 NSWLR 1; [2000] NSWCA 374 Horsfall v Haywards [1999] PNLR 583 Hunt & Hunt Lawyers v Mitchell Morgan Nominees (2013) 247 CLR 613; [2013] HCA 10 Jones v Daniel (2004) 141 FCR 148; [2004] FCAFC 278 Kowalczuk v Accom Finance (2008) 77 NSWLR 205; [2008] NSWCA 343 Lysaght v Edwards (1876) 2 Ch D 499 Meandarra Aerial Spraying Pty Ltd v GEJ & MA Geldard Pty Ltd as Trustee for the G & M Geldard Family Trust [2013] 1 Qd R 319; [2012] QCA 315 Midland Bank v Hett, Stubbs and Kemp [1979] Ch 384 Mullane v Mullane (1983) 158 CLR 436; [1983] HCA 4 Official Trustee in Bankruptcy v Mateo (2003) 127 FCR 217; [2003] FCAFC 26 Pilkington v Wood [1953] Ch 770 Re Thackwray and Young's Contract (1888) 40 Ch D 34 Reliance Finance Corporation Pty Ltd v Heid [1982] 1 NSWLR 466 Shrimp v Landmark Operations Ltd (2007) 163 FCR 510; [2007] FCA 1468 Tanwar Enterprises Pty Ltd v Cauchi (2003) 217 CLR 315; [2003] HCA 57 Trajkovski v Simpson [2018] NSWSC 720 Treloar v Henderson [1968] NZLR 1085 Voli v Inglewood Shire Council (1963) 110 CLR 74; [1963] HCA 15 Vukmirica v Betyounan [2008] NSWCA 16 Walker v Geo H Medlicott & Son [1999] 1 WLR 727; [1999] 1 All ER 685 Winter v Lord Anson (1827-28) 3 Russ 488; 38 ER 658) Wossidlo v Catt (1934) 52 CLR 301; [1934] HCA 52 Category: Principal judgment Parties: Suzana Trajkovski (Appellant) Ian Garnet Simpson (First Respondent) Simpson & Partners Solicitors Pty Ltd (Second Respondent) Representation: Counsel: Ms J McIntosh (Appellant) Mr J S Emmett / Mr H Grace (Respondents)