Callachor and Gillroy trading as Callachor Gillroy Solicitors v Black and Anor [2000] NSWCA 347

Callachor and Gillroy trading as Callachor Gillroy Solicitors v Black and Anor [2000] NSWCA 347

The solicitor breached a duty owed to the purchasers by failing to disclose to them, before completion, the full extent and significance of rental arrears associated with the business being acquired, and by acting for both sides in conflict. This non-disclosure was causative of loss, as the plaintiffs would not have proceeded with the purchase had adequate disclosure and advice been given.

Parties
Appellants: Julian Callachor and Robert Gillroy trading as Callachor Gillroy Solicitors; Respondent: Louise Black; Respondent: Steven Woods
Jurisdiction
Australia
Judgment Date
27 November 2000
Procedural Posture
Appeal / Judgment
Outcome
Appeal dismissed
Legal Topics
Solicitor's Duties, Conflict of Interest, Non Disclosure, Damages
Professional Negligence Contract Law Solicitor's Duties Conflict of Interest Non Disclosure Damages

Case Brief

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Parties

Julian Callachor and Robert Gillroy trading as Callachor Gillroy Solicitors

Appellants

Louise Black

Respondent

Steven Woods

Respondent

Procedural Posture

Appeal / Judgment

Legal Issues

  1. 1 Whether the solicitor breached a duty of disclosure to clients regarding substantial rent arrears when acting for both vendor and purchaser
  2. 2 Whether the non-disclosure caused the plaintiffs' loss
  3. 3 Assessment of damages for lost opportunity and income

Ratio Decidendi

The solicitor breached a duty owed to the purchasers by failing to disclose to them, before completion, the full extent and significance of rental arrears associated with the business being acquired, and by acting for both sides in conflict. This non-disclosure was causative of loss, as the plaintiffs would not have proceeded with the purchase had adequate disclosure and advice been given.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.
  • The appellants are to pay the costs of the first respondents.