About Life Pty Ltd v Maddocks Lawyers [2021] NSWSC 1370

About Life Pty Ltd v Maddocks Lawyers [2021] NSWSC 1370

Maddocks Lawyers breached their duty of care (and contract) to About Life by failing to obtain adequate, well-timed instructions as to side deeds or restrictions relevant to the lease assignment, which a competent solicitor would have done earlier and with sufficient clarity. This failure led directly to About Life losing the opportunity to contract with Woolworths in a timely and orderly fashion, resulting in financial losses. The directors' interests were coincident with the company such that a duty of care was owed to them as well. However, About Life contributed to the loss by failing to check its own records regarding the asset before or while instructing solicitors; damages were...

Jurisdiction
Australia
Judgment Date
28 October 2021
Procedural Posture
Principal Judgment / Judgment After Trial
Outcome
Judgment for cross-claimants; damages awarded for professional negligence with reduction for contributory negligence.
Legal Topics
["solicitor's Duty of Care" 'loss of a Chance' 'contributory Negligence' 'concurrent Wrongdoers' 'assignment of Lease' "director's Duties" 'misleading and Deceptive Conduct']
['professional Negligence' 'equity' 'real Property' 'contract Law' 'corporations'] ["solicitor's Duty of Care" 'loss of a Chance' 'contributory Negligence' 'concurrent Wrongdoers' 'assignment of Lease' "director's Duties" 'misleading and Deceptive Conduct']

Case Brief

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Procedural Posture

Principal Judgment / Judgment After Trial

Legal Issues

  1. 1 ['Whether Maddocks Lawyers breached their duty of care and contract to About Life Pty Ltd in the sale of a business involving an assignment of lease' 'Whether the directors of About Life were owed a duty of care by Maddocks Lawyers' 'Whether About Life and/or its directors were contributorily negligent' 'Whether damages should be reduced for contributory negligence or due to the involvement of concurrent wrongdoers' 'How damages for loss of commercial opportunity should be assessed in this context']

Ratio Decidendi

Maddocks Lawyers breached their duty of care (and contract) to About Life by failing to obtain adequate, well-timed instructions as to side deeds or restrictions relevant to the lease assignment, which a competent solicitor would have done earlier and with sufficient clarity. This failure led directly to About Life losing the opportunity to contract with Woolworths in a timely and orderly fashion, resulting in financial losses. The directors' interests were coincident with the company such that a duty of care was owed to them as well. However, About Life contributed to the loss by failing to check its own records regarding the asset before or while instructing solicitors; damages were...

Court Disposition

Judgment for cross-claimants; damages awarded for professional negligence with reduction for contributory negligence.

Orders

  • ['Judgment in favour of About Life Pty Ltd against Maddocks Lawyers in the sum of $12,716,800 plus interest from 1 July 2017.' "Judgment for About Life Pty Ltd against Maddocks Lawyers in the sum of $280,000 (Woolworths' costs) plus interest from 13 December 2017." 'Judgment in favour of Tammie Phillips, Michael...