Fahd v Kenneally [2011] NSWCA 419
The respondent was not in breach of her retainer or duty of care. The scope of retainer was limited by Mr Fahd's clear instructions not to document or advise further on the side agreement. The respondent properly advised of enforceability risks; any further obligation would exceed reasonable professional requirements. Even if insertion of a term to preserve the side agreement were the correct course, there was no evidence Mr Fahd would have accepted such advice. Appeal dismissed.
- Jurisdiction
- Australia
- Judgment Date
- 22 December 2011
- Procedural Posture
- Appeal / Court of Appeal; Judgment
- Outcome
- Appeal dismissed with costs
- Legal Topics
- ['scope of Retainer' 'duty of Care' 'breach of Retainer' 'breach of Duty of Care' 'collateral Contracts' 'side Agreement' 'conveyancing Act']
Case Brief
Summary, issues, holding and outcome
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Procedural Posture
Appeal / Court of Appeal; Judgment
Legal Issues
- 1 ['Whether the respondent breached an implied term of retainer to advise and act with reasonable skill and care regarding enforceability of a side agreement' 'Whether the respondent owed or breached a duty of care in drafting contracts for sale to ensure enforceability of collateral agreement' 'Whether scope of retainer included obligation to address impact of contract terms on side agreement']
Ratio Decidendi
The respondent was not in breach of her retainer or duty of care. The scope of retainer was limited by Mr Fahd's clear instructions not to document or advise further on the side agreement. The respondent properly advised of enforceability risks; any further obligation would exceed reasonable professional requirements. Even if insertion of a term to preserve the side agreement were the correct course, there was no evidence Mr Fahd would have accepted such advice. Appeal dismissed.
Court Disposition
Appeal dismissed with costs
Orders
- ['Appeal dismissed' "Appellants to pay respondent's costs"]
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