Anderson v Edwards

Anderson (the plaintiff) brought proceedings against Edwards (the defendant), a solicitor, alleging professional negligence. The dispute concerned the plaintiff's claim for damages arising from the defendant's alleged negligence. The matter was heard in the Court of Appeal of New South Wales.

The primary legal issue before the Court of Appeal was whether the plaintiff's potential alternative transactions, which were not pursued, were relevant to the assessment of damages in a claim for solicitors' negligence.

The Court of Appeal held that the plaintiff's possible alternative transactions were not relevant to the assessment of damages. The court reasoned that the defendant's negligence had deprived the plaintiff of a specific opportunity, and the damages should be assessed by reference to the value of that lost opportunity, rather than by speculating on what the plaintiff might have done otherwise. The legal principle applied was that damages for professional negligence are intended to put the plaintiff in the position they would have been in had the negligence not occurred, focusing on the loss of the specific opportunity that was negligently handled.

The appeal was dismissed, and the plaintiff was ordered to pay the defendant's costs on an indemnity basis.