Callachor and Gillroy trading as Callachor Gillroy Solicitors v Black

Callachor and Gillroy, a firm of solicitors, appealed to the New South Wales Court of Appeal against a judgment of the Supreme Court of New South Wales which found them liable for professional negligence. The dispute arose from the conduct of the solicitors in relation to a settlement of a claim for damages for personal injuries brought by their client, Mr Black. Mr Black alleged that the solicitors had negligently advised him to accept a settlement offer that was significantly less than the true value of his claim.

The Court of Appeal was required to determine whether the solicitors had breached their duty of care to Mr Black by advising him to accept the settlement offer. Specifically, the court had to consider whether the advice given was within the range of reasonable advice that a competent solicitor could have given in the circumstances, and whether the solicitors had adequately informed Mr Black of the risks and potential outcomes of proceeding to trial. The court also considered the principles governing the assessment of damages in professional negligence claims, particularly in relation to the loss of a chance to achieve a better outcome.

The Court of Appeal upheld the finding of negligence, reasoning that the solicitors had failed to exercise reasonable care and skill in advising Mr Black. The court found that the advice given was not within the bounds of reasonable professional judgment, as the solicitors had not adequately assessed the strength of Mr Black's case or the potential range of damages. Furthermore, the court held that the solicitors had not discharged their duty to inform Mr Black of the uncertainties and risks associated with litigation, thereby preventing him from making a fully informed decision about the settlement. The court applied the principles established in cases concerning professional negligence, emphasizing the solicitor's duty to provide competent advice and to ensure the client understands the implications of their decisions.

The appeal was dismissed, and the orders of the Supreme Court were affirmed.