Alexander v Cappello

In *Alexander v Cappello*, the Supreme Court of Victoria was asked to determine whether a solicitor, Mr. Cappello, had breached his duty of care to his client, Ms. Alexander, by failing to advise her of the risks associated with a particular settlement offer in family law proceedings. Ms. Alexander alleged that had she been properly advised, she would not have accepted the settlement, which she later claimed was significantly less than what she would have received had the matter proceeded to final hearing.

The central legal issue before the Court was whether Mr. Cappello's conduct fell below the standard of care expected of a reasonably competent solicitor in Victoria. Specifically, the Court had to consider what advice a solicitor is obliged to give in relation to settlement offers, particularly when those offers are made in the context of complex family law litigation where there is a degree of uncertainty regarding the outcome of a final hearing. The Court also considered the nature of the duty owed by a solicitor to their client, including the duty to inform and advise on all material aspects of a case.

Judge Driver found that Mr. Cappello had breached his duty of care to Ms. Alexander. The Court reasoned that a solicitor has a positive duty to advise their client on the strengths and weaknesses of their case, the potential risks and benefits of accepting a settlement offer, and the likely outcome if the matter proceeds to trial. In this instance, Mr. Cappello failed to adequately explain the potential downside of accepting the settlement offer, particularly in light of the evidence that suggested Ms. Alexander had a stronger claim than the settlement reflected. The Court applied the principles of negligence, requiring proof of a duty of care, a breach of that duty, and resulting loss.

The Court ordered that Mr. Cappello pay damages to Ms. Alexander in an amount to be assessed, reflecting the loss she suffered as a result of the inadequate advice received.