Carey v Freehills

The Federal Court of Australia dismissed the cross-claim brought by Norman Phillip Carey and others against Freehills, a law firm, and the Australian Securities and Investments Commission (ASIC). The cross-claimants alleged that the law firm was negligent and engaged in misleading and deceptive conduct, which resulted in the loss of the opportunity to float the Westpoint Group and the loss of value of their shareholding in the companies comprising the Westpoint Group. The court found that the cross-claimants failed to establish the essential elements of their claims, including duty of care, reliance, and causation. Kenny J concluded that the claims against Freehills were dismissed, and if the parties did not submit written submissions on costs within 10 days of the delivery of judgment, the cross-claimants would be ordered to pay the first cross-respondent's costs of and incidental to the cross-claim.