Hunt & Hunt Lawyers v Mitchell Morgan Nominees Pty Ltd [2013] HCA 10

Hunt & Hunt Lawyers v Mitchell Morgan Nominees Pty Ltd [2013] HCA 10

The loss suffered by Mitchell Morgan was its inability to recover monies advanced. Both the fraudsters’ conduct and Hunt & Hunt’s negligence each materially contributed to that loss. Therefore, Hunt & Hunt are concurrent wrongdoers with the fraudsters under Part 4 of the Civil Liability Act 2002 (NSW), and Hunt & Hunt's liability is to be limited to their proportionate responsibility for the loss.

Parties
Appellant/applicant: Hunt & Hunt Lawyers; Respondents: Mitchell Morgan Nominees Pty Ltd and Mitchell Morgan Nominees (No. 2) Pty Ltd; Respondents: Third and Fourth Respondents
Jurisdiction
Australia
Judgment Date
03 April 2013
Procedural Posture
Appeal and Application for Special Leave / High Court of Australia Judgment Following Appeal From the Court of Appeal of the Supreme Court of New South Wales
Outcome
Appeal allowed with costs. Application for special leave dismissed with costs.
Legal Topics
Proportionate Liability, Negligence, Solicitor's Duties, Causation, Apportionment of Liability
Torts Civil Procedure Proportionate Liability Negligence Solicitor's Duties Causation Apportionment of Liability

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Parties

Hunt & Hunt Lawyers

Appellant/applicant

Mitchell Morgan Nominees Pty Ltd and Mitchell Morgan Nominees (No. 2) Pty Ltd

Respondents

Third and Fourth Respondents

Respondents

Procedural Posture

Appeal and Application for Special Leave / High Court of Australia Judgment Following Appeal From the Court of Appeal of the Supreme Court of New South Wales

Legal Issues

  1. 1 Whether solicitors (Hunt & Hunt) were concurrent wrongdoers with fraudsters under Part 4 of the Civil Liability Act 2002 (NSW) in respect of economic loss suffered by lender due to fraud and solicitors' negligence
  2. 2 How to identify the relevant 'loss or damage' for the purposes of proportionate liability under the Civil Liability Act 2002 (NSW)
  3. 3 Whether solicitors' liability should be apportioned under statute or constitute entire liability

Ratio Decidendi

The loss suffered by Mitchell Morgan was its inability to recover monies advanced. Both the fraudsters’ conduct and Hunt & Hunt’s negligence each materially contributed to that loss. Therefore, Hunt & Hunt are concurrent wrongdoers with the fraudsters under Part 4 of the Civil Liability Act 2002 (NSW), and Hunt & Hunt's liability is to be limited to their proportionate responsibility for the loss.

Court Disposition

Appeal allowed with costs. Application for special leave dismissed with costs.

Orders

  • Appeal allowed with costs.
  • Application for special leave dismissed with costs.