Bebonis v Angelos

The case of *Bebonis v Angelos* concerned a dispute between a vendor and a purchaser arising from a contract for the sale of land. The purchaser, Mr Bebonis, sought to recover damages from the vendor, Mr Angelos, and his solicitor, alleging negligence in the vendor's response to a requisition on title. The matter was heard in the Court of Appeal of New South Wales.

The primary legal issues before the Court of Appeal were whether the vendor and his solicitor owed a duty of care to the purchaser in relation to the answer provided to a requisition on title, and if so, whether that duty had been breached. A further issue concerned the court's power to allow an amendment to the pleadings to raise a cause of action that was statute-barred.

The Court of Appeal considered the established principles of conveyancing and negligence. It was held that a vendor and their solicitor owe a duty of care to the purchaser to provide a truthful and accurate answer to a requisition on title. This duty arises from the contractual relationship and the solicitor's professional obligations. The court found that the vendor's solicitor had failed to exercise reasonable care and skill in investigating the truth of the vendor's assertions in response to the requisition, thereby breaching the duty of care owed to the purchaser. Regarding the amendment to the pleadings, the court applied the principles governing the amendment of pleadings, particularly in circumstances where a statute-barred claim is sought to be introduced, balancing the interests of justice and the need to avoid prejudice to the opposing party.

The Court of Appeal made orders allowing the appeal in part, setting aside the judgment of the primary judge and remitting the matter for a new trial on the issue of damages. The court also made specific orders concerning the costs of the appeal and the proceedings at first instance.