Artistic Builders Pty Ltd v Nash

In Artistic Builders Pty Ltd v Nash, Artistic Builders sued for professional negligence related to a property sale. The sale involved deferred payment to a nominee company or an option for units in a new development. The dispute arose when the development proposal failed, rendering the securities valueless. The central issue was whether the solicitors who acted for the vendor companies (referred to as company A and company B) owed a duty of care to protect the vendors' interests and if they failed in this duty.

The court examined the scope of the solicitors' retainer and their duty to advise on the need for a valuation of the securities and the amounts owing under the mortgages. The key legal issue was whether the solicitors' failure to obtain informed instructions on verifying the securities and providing appropriate advice led to a breach of duty. The court also considered the causation, determining if the vendors would have avoided the transaction if they had received proper advice. Additionally, the limitation of action defence was addressed, with the court finding that the proceedings against the solicitors were barred as they were not brought in the name of company A. The advocates' immunity defence was also examined, concluding that it was not available to the solicitors who acted for company B. Finally, the court considered the apportionment of liability under the Civil Liability Act.

The court found that the solicitors did owe a duty of care and breached this duty by failing to provide adequate advice. Regarding causation, the court held that the vendors would likely have avoided the transaction if they had received proper advice. The limitation of action defence was upheld, barring the proceedings against the solicitors. The advocates' immunity defence was not applicable. The court apportioned liability between the solicitors who acted for company B and the counsel who advised on the mortgages.