Lindsay-Owen v HWL Ebsworth Lawyers (No 2) [2024] NSWSC 541

Lindsay-Owen v HWL Ebsworth Lawyers (No 2) [2024] NSWSC 541

The plaintiffs' expenses caused by the defendant's negligence are to be netted off against receipts, not treated as a separate head of loss, in line with expert accountant evidence. The appropriate hypothetical quid pro quo adjustment for Schofields in exchange for the NAB debt assumption should adopt the formula proposed in Schofields' 2014 cross-claim, leading to a final equity payment by the plaintiffs and a 50:50 participation interest after payment. The Sellars discount is to be applied to both sides of the ledger, with the 5% non-diversifiable risk discount compounded.

Parties
First Plaintiff: Gregory Hamilton Willoughby Lindsay-Owen; Second Plaintiff: Dairycorp Pty Limited; First to One Hundred and Sixth Defendants: Martin Downing & Ors Trading as HWL Ebsworth Lawyers
Jurisdiction
Australia
Judgment Date
10 May 2024
Procedural Posture
Professional Negligence / Quantification of Damages Following Liability Decision
Outcome
Orders deferred pending recalculation of quantum in accordance with reasons; findings made on all major outstanding issues; directions for parties to approach court for final orders.
Legal Topics
Solicitors' Duties, Loss of Chance, Damages Assessment, Causation, Opinion Evidence
Negligence Professional Negligence Damages Solicitors' Duties Loss of Chance Damages Assessment Causation Opinion Evidence

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Parties

Gregory Hamilton Willoughby Lindsay-Owen

First Plaintiff

Dairycorp Pty Limited

Second Plaintiff

Martin Downing & Ors Trading as HWL Ebsworth Lawyers

First to One Hundred and Sixth Defendants

Procedural Posture

Professional Negligence / Quantification of Damages Following Liability Decision

Legal Issues

  1. 1 How should the plaintiffs' expenses be accounted for in assessing their loss?
  2. 2 Are certain claimed expenses caused by HWLE's negligence and are they recoverable?
  3. 3 How should the repayment of the NAB loan be treated in the damages calculation?

Ratio Decidendi

The plaintiffs' expenses caused by the defendant's negligence are to be netted off against receipts, not treated as a separate head of loss, in line with expert accountant evidence. The appropriate hypothetical quid pro quo adjustment for Schofields in exchange for the NAB debt assumption should adopt the formula proposed in Schofields' 2014 cross-claim, leading to a final equity payment by the plaintiffs and a 50:50 participation interest after payment. The Sellars discount is to be applied to both sides of the ledger, with the 5% non-diversifiable risk discount compounded.

Court Disposition

Orders deferred pending recalculation of quantum in accordance with reasons; findings made on all major outstanding issues; directions for parties to approach court for final orders.