Rahme v Benjamin & Khoury Pty Ltd [2019] NSWCA 211

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Rahme v Benjamin & Khoury Pty Ltd [2019] NSWCA 211 Hearing dates: 12 June 2019 Decision date: 30 August 2019 Before: Bathurst CJ at [1]; Macfarlan JA at [2]; McCallum JA at [142] Decision: (1) Allow the appeal in respect of the dismissal of Mrs Rahme's claim against Benjamin & Khoury Pty Ltd.

(2) Dismiss the appeal in relation to the rejection of Mrs Rahme's claim against Mr Dieb Khoury.

(3) Direct that the parties lodge and serve, according to the following timetable, draft Short Minutes of Order and, if necessary brief written submissions, concerning the orders to be made to give effect to these reasons for judgment:

(i) Mrs Rahme by 5.00pm on 6 September 2019;

(ii) Benjamin & Khoury Pty Ltd and Mr Khoury by 5.00pm on 13 September 2019; and

(iii) Any reply by Mrs Rahme by 5.00pm on 18 September 2019. Catchwords: EQUITY – fiduciary duties – whether fiduciary duties owed by a solicitor during negotiations for and steps taken to establish a solicitor/client relationship – breach – whether client gave fully informed consent to enter into agreements with solicitor – whether advice "independent" and "meaningful"

CIVIL LIABILITY – Civil Liability Act 2002 – defences of contributory negligence and proportionate liability not available in answer to claim for breach of fiduciary duties – claim arising "from a failure to take reasonable care" requires absence of reasonable care to be an element of the cause of action Legislation Cited: Australian Consumer Law (NSW) Civil Liability Act 2002 (NSW), ss 5A, 5R-T Civil Procedure Act 2005 (NSW) Contracts Review Act 1980 (NSW), s 16 Fair Trading Act 1987 (NSW) Law Reform (Miscellaneous Provisions) Act 1965 (NSW), ss 8, 9 Legal Profession Act 2004 (NSW), ss 302A, 322 Cases Cited: ACQ Pty Ltd v Cook (2008) 72 NSWLR 318; [2008] NSWCA 161 Barnes v Addy (1874) LR 9 Ch App 244 Bester v Perpetual Trustee Co Ltd [1970] 3 NSWR 30 Bray v Ford [1896] AC 44 at 51 Cassegrain v Cassegrain [2016] NSWCA 71 Chan v Zacharia (1984) 154 CLR 178; [1984] HCA 36 Citicorp Australia Ltd v O'Brien (1996) 40 NSWLR 398 Commonwealth Bank of Australia v Smith (1991) 42 FCR 390 Farah Constructions v Say-dee Pty Ltd (2007) 230 CLR 89; [2007] HCA 22 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41; [1984] HCA 64 Law Society of New South Wales v Foreman (1994) 34 NSWLR 408 Life Association of Scotland v Siddal (1861) 3 De GF&J 58 Maguire v Makaronis (1997) 188 CLR 449; [1997] HCA 23 Monaghan Surveyors Pty Ltd v Stratford Glen-Avon Pty Ltd [2012] NSWCA 94 Norberg v Wynrib (1992) 2 SCR 226 Perpetual Company Ltd v Milanex Pty Ltd (in liquidation) [2011] NSWCA 367 Perpetual Trustee Company Ltd v CTC Group Pty Ltd (No 2) [2013] NSWCA 58 Pilmer v Duke Group Ltd (in liq) (2001) 207 CLR 165; [2001] HCA 31 Polkinghorne v Holland (1934) 51 CLR 143; [1934] HCA 28 Provident Capital Ltd v Papa (2013) 84 NSWLR 231; [2013] NSWCA 36 Symond v Raphael (1998) 198 FLR 171 United Dominions Corporation Ltd v Brian Pty Ltd (1985) 157 CLR 1; [1985] HCA 49 Texts Cited: Meagher, Gummow and Lehane's Equity Doctrines and Remedies (5th ed, 2014) Paul Finn, Fiduciary Obligations (Republication, 2016) T G Youdan (ed), Equity, Fiduciaries and Trusts (1989) Category: Principal judgment Parties: Dana Rahme (First Appellant) Gabriel Rahme (Second Appellant) Benjamin & Khoury Pty Ltd (First Respondent) Dieb P Khoury (Second Respondent) Representation: Counsel: D A Allen (Appellants) A R Zahra / F Tao (Respondents)