Austrust Ltd v Astley

In Austrust Ltd v Astley, the Full Court of the Supreme Court of South Australia addressed an appeal and cross-appeal concerning a legal malpractice case. The appellant, Austrust Ltd, a trustee company, sued its former solicitors, the respondents, for negligence and breach of contract. Austrust claimed that the respondents failed to provide adequate legal advice when it accepted the role of trustee for a trading trust, specifically not warning Austrust about its personal liability for the trust's obligations. The respondents argued that their retainer was limited and that Austrust was aware of its potential liability. The court had to decide whether the respondents owed a duty of care to Austrust and if they breached that duty. Additionally, the court examined issues of contributory negligence and the appropriate measure of damages.

The Full Court found that the respondents did owe a duty of care to Austrust, which included advising it on matters necessary to protect itself from personal liability. The court held that the respondents failed in this duty, leading to a breach of contract. Regarding contributory negligence, the court dismissed the respondents' argument that Austrust was negligent in accepting the trustee role without fully considering the financial implications. The court also found that the trial judge's assessment of damages was generally correct, though it invited further submissions on the precise calculation of certain costs. The appeal concerning the trial judge's decision on costs was dismissed, as the judge's discretion in determining costs was not improperly exercised. The court's decision upheld most of the trial judge's findings but invited further submissions on specific damages calculations.