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Cheney v Duncan

Cheney v Duncan

Case [2001] NSWCA 197 6 July 2001

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CITATION: Cheney & Wilson v Duncan [2001] NSWCA 197

FILE NUMBER(S): CA 40093/00

HEARING DATE(S): 29/06/01

JUDGMENT DATE:
6 July 2001

PARTIES :

Anthony Arnold Cheney & Peter Neil Wilson v Michael Ronald Duncan

JUDGMENT OF: Meagher JA at 1; Handley JA at 2; Ipp AJA at 3

LOWER COURT JURISDICTION : District Court

LOWER COURT
FILE NUMBER(S) : 1440/99

LOWER COURT
JUDICIAL OFFICER : O'Reilly DCJ

COUNSEL: D L Davies SC (Appellants)
M W Hadley (Respondent)

SOLICITORS: Ebsworth & Ebsworth (Appellants)
Attwood Marshall (Respondent)

CATCHWORDS: LIMITATION PERIOD - When does time begin to run? - Limitation Act 1969 - action against solicitor for losses arising from statute barring of original damages claim - applicability of exception to general rule espoused by Deane J in Hawkins v Clayton (1988) 164 CLR 539. D

LEGISLATION CITED: Limitation Act 1969

CASES CITED:
Hawkins v Clayton (1988) 164 CLR 539
Wardley Australia Limited v Western Australia (1992) 175 CLR 514
Scarcella v Lettice [2000] NSWCA 289
Pirelli General Cable Works Limited v Oscar Faber & Partners (a firm) [1983] 2 AC 1
Sampson v Zucker (NSW Court of Appeal, unreported, 11 December 1996)
Johnson v Perez (1988) 166 CLR 351
Nikolaou v Papasavas, Phillips & Company (1989) 166 CLR 394
Registrar-General v Cleaver (1996) 41 NSWLR 713
Hetherington v Mirvac Pty Limited (1999) Aust Torts Reports 81-514
Crisp v Blake (1992) Aust Torts Reports 81-158
Toomey v WALS (1999) NSWSC 560
Wilson v Rigg [2000] NSWSC 16
Di Sante v Camando Nominees Pty Limited [2000] VSC 211
Doundoulakis v Antony Sdrinis & Co [1989] VR 781

DECISION: (1) Appeal upheld (2) Summary judgment in favour of the appellant (3) Respondent's claim against appellant dismissed with costs (4) Respondent to have certificate under Suitor's Fund Act, if so entitled.

CA 40093/00

DC 1440/99

MEAGHER JA

HANDLEY JA

IPP AJA

Wednesday 6 July 2001

ANTHONY ARNOLD CHENEY & PETER NEIL WILSON v MICHAEL RONALD DUNCAN

Facts:

The respondent was injured in a motor vehicle accident on 24 December 1983. His injuries were caused by the negligence of the driver of the other vehicle, D. The respondent retained solicitors in June 1985 to bring a claim against D’s insurers, FAI. This lead to FAI’s admission of liability and offer to settle the claim for $3,000. Before the claim was finalised the respondent’s solicitor transferred his practice to another solicitor, M, who took no material steps to advance the conduct of the respondent’s claim.

After engaging the appellants as his new solicitors the respondent brought a claim against D for damages in August 1991, however this was meet by a defence that the action was barred due to the expiration of the limitation period under s 14(1) Limitation Act 1969. These proceedings were discontinued in January 1992 and an action was brought against his former solicitors, M for professional negligence. These proceedings were dismissed both at trial and on appeal.

In early 1997 the appellant urged the respondent to seek further independent legal advice, as a…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

Continue reading Cheney v Duncan

Details

AGLC: Cheney v Duncan [2001] NSWCA 197
Case: [2001] NSWCA 197
Decision Date: 6 July 2001

CaseChat Overview and Summary

Cheney v Duncan concerned an appeal to the New South Wales Court of Appeal from a decision of a Master. The appellant, a solicitor, sought to set aside a default judgment entered against him in favour of the respondent, his former client. The respondent's claim arose from losses allegedly suffered by the respondent due to the appellant's negligence in failing to commence an action within the relevant limitation period.

The primary legal issue before the Court of Appeal was when the limitation period for the respondent's claim against the appellant began to run. Specifically, the Court had to determine whether the respondent's cause of action accrued at the time of the alleged negligence (the failure to commence the original action) or at the time the respondent suffered actual loss as a result of that negligence, which occurred when the original claim became statute-barred. This involved considering the application of the exception to the general rule regarding the accrual of causes of action in negligence, as articulated by Deane J in *Hawkins v Clayton*.

The Court of Appeal upheld the appeal, finding that the respondent's cause of action accrued at the time of the appellant's negligence, not when the original claim became statute-barred. The Court reasoned that the respondent suffered damage at the moment the appellant failed to commence the original action within the limitation period, thereby depriving the respondent of a valuable chose in action. The subsequent loss was merely a quantification of that initial damage. Accordingly, the Court concluded that the respondent's claim against the appellant was out of time.

The Court ordered that the appeal be upheld, that summary judgment be entered in favour of the appellant, and that the respondent's claim against the appellant be dismissed with costs. The respondent was also to have a certificate under the Suitor's Fund Act, if so entitled.

Orders

Orders of the court

(1) Appeal upheld (2) Summary judgment in favour of the appellant (3) Respondent's claim against appellant dismissed with costs (4) Respondent to have certificate under Suitor's Fund Act, if so entitled.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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Actions

Citations

Cheney v Duncan [2001] NSWCA 197

Most Recent Citation

Hind v Ronsel Investments Pty Ltd [2020] VSC 428

Cases Citing This Decision

Krug v National Australia Bank Ltd [2025] QSC 183
Citation 1 (Para 10)

…applications for summary dismissal based on limitation defences. Some examples of such cases since Wardley include Cheney & Wilson v Duncan [2001] NSWCA 197 and Samson v Zucker (unreported, Court of Appeal, 11 December 1996). [92] I bear in mind the warning given in Wardley in the joint judgement, and I am mindful…
Novosel v The Trustee for the Steiner Family Trust [2024] ACTSC 111
Citation 2

…Argyropoulos v Layton [2002] NSWCA 183; 36 MVR 432 Cheney v Duncan [2001] NSWCA 197; 34 MVR 28 Commonwealth v Cornwell [2007] HCA 16; 229 CLR 519 Dougall v Melville [2017] NSWCA 309 Galovac Pty Ltd v Australian Capital Territory [2010] ACTSC 132; 19 ACTLR 238…
Trans Petroleum (Australia) Pty Ltd v United Petroleum (WA) Pty Ltd [No 2] [2022] WASC 460
Citation 3 (Para 1)

…51 (Nicholson J, Pidgeon & Murray JJ agreeing); Scarcella v Lettice [2000] NSWCA 289; (2000) 51 NSWLR 302 [13] ‑ [14] (Handley JA); Cheney v Duncan [2001] NSWCA 197; (2001) 34 MVR 28 [24] ‑ [26] (Ipp AJA, Meagher & Handley JJA agreeing); Wilson v Rigg [2002] NSWCA 246; (2002) 36 MVR 451 [23] (Giles JA, Santow JA &…
The Owners - Strata Plan No 55682 v W. R. Berkley Insurance (Europe), Plc [2020] NSWDC 758
Citation 4 (Para 427)

…er of decisions in the Court of Appeal in which Deane J’s observations were considered [57] . 57. These decisions were Cheney & Wilson v Duncan [2001] NSWCA 197, Walmsley v Cosentino [2001] NSWCA 403, Argyropoulos v Layton & Anor [2002] NSWCA 183, and State of New South Wales v Harlum [2007] NSWCA 120.…
Hind v Ronsel Investments Pty Ltd [2020] VSC 428
Citation 5 (Para 1)

…on the grounds relied upon by him in the objection. [48]See, for example, Commonwealth v Mewett (1997) 191 CLR 471, at 508-9 per Dawson J, Cheney v Duncan (2001) 34 MVR 28; and Winnote Pty Ltd and anor v Page (2006) 68 NSWLR 531, 550-1.…
Permanent Custodians Ltd v Shannon [No 2] [2018] WASC 295
Citation 6

…er v GE Mortgage Solutions Ltd [2013] QCA 137 Blomley v Ryan (1956) 99 CLR 362 Chapman v Luminis Pty Ltd [No 5] [2001] FCA 1106 Cheney v Duncan [2001] NSWCA 197 Commercial Bank of Australia Ltd v Amadio (1983) 151 CLR 447 Esanda Finance Corp Ltd v Viet Nho Tong & Thi Kim Lien Tong (1997) 41 NSWLR 482 Hawkins v Clay…
Morris v Trodden [2015] NSWSC 705
Citation 7

…le for such proceedings to be brought ( Sampson v Zucker (unreported, New South Wales Court of Appeal, 11 December 1996); Cheney v Duncan [2001] NSWCA 197; (2001) 34 MVR 28 at [31]; see also Scarcella v Lettice [2000] NSWCA 289; (2000) 51 NSWLR 302 at [43]). 37 In my view, and having regard to the warning of the Hi…
Zabic v Alcan Gove Pty Ltd [2015] NTCA 2
Citation 8

…relli v Oscar Faber and Partners (1983) 2 AC 1; Hawkins v Clayton (1988) 164 CLR 539; Gillespie v Elliott [1987] 2 Qd R 509; Cheney & Wilson v Duncan [2001] NSWCA 197; Read v Brown (1888) 22 QBD 128; Do Carmo v Ford Excavations Proprietary Ltd (1983 – 1984) 154 CLR 234; Cigna Insurance Asia Pacific Ltd v Packer (20…
Issa v Issa [2015] NSWSC 112
Citation 9 (Para 36)

…ssible for such proceedings to be brought ( Sampson v Zucker (Unreported, New South Wales Court of Appeal, 11 December 1996); Cheney v Duncan [2001] NSWCA 197; (2001) 34 MVR 28 at [31]; see also Scarcella v Lettice [2000] NSWCA 289; (2000) 51 NSWLR 302 at [43]).…
Cork v AAL Aviation Limited [2014] FCA 1085
Citation 10 (Para 3)

…In Cheney v Duncan (2001) 34 MVR 28, [2001] NSWCA 197, Ipp JA said (at [31]): The essence of the exception as so enunciated [by Deane J in Hawkins v Clayton ] is that it applies when the very act of negligence that inflicts the injury also has the effect of precluding the bringing of an action for damages. There mu…
Constantinidis v Kehagiadis [2011] NSWSC 974
Citation 11 (Para 1)

…y loss. He only suffers loss when the cause of action becomes statute barred: Walmsley v Cosentino [2001] NSWCA 403 at [46]; Cheney & Wilson v Duncan [2001] NSWCA 197 at [28]; Wilson v Rigg [2002] NSWCA 246 at [31]-[34].…
Palindrome Holdings Pty Ltd v Wass [2009] NSWSC 797
Citation 12

…CLR 549 Ariadne Steamship Co Ltd v James McKelvie & Co [1922] 1 KB 518 Brimson v Rocla Concrete Pipes Ltd [1982] 2 NSWLR 937 Cheney & Wilson v Duncan [2001] NSWCA 197 Clark Equipment Credit of Australia Ltd v Kiyose Holdings Pty Ltd & Others (1989) 21 NSWLR 160 Clyde Industries Ltd v Dittes (unreported, NSW Supreme…
Iverson v Howen & Anor [2008] NSWSC 1246
Citation 13

…cidents Act 1988 CASES CITED: Gordon v NSW Insurance Ministerial Corporation [2006] NSWSC 350 Wilson v Rigg [2002] NSWCA 246 Cheney & Wilson v Duncan [2001] NSWCA 197 Wardley Australia Ltd v The State of Western Australia (1992) 175 CLR 514 Commonwealth of Australia v Cornwell [2007] HCA 16, 234 ALR 148 Hawkins v C…
Hamze v Bradstreet [2007] NSWDC 54
Citation 14

…MVR 432; [2002] NSWCA 183 Bechara v Jawhar [2007] NSWCA 25 Chamberlain v Ormsby t/as Ormsby Flower [2005] NSWCA 454 Cheney v Duncan (2001) 34 MVR 28; [2001] NSWCA 197 Commonwealth v Amann Aviation Pty Ltd (1991) 174 CLR 64 Ellis v Wallsend District Hospital (1989) 17 NSWLR 553 Feletti v Kontoulas [2000] NSWCA 59 Hu…
State of New South Wales v NatWest Markets Australia No 2 Pty Limited & ors [2006] NSWSC 751
Citation 15

…ch - Hawkins v Clayton distinguished - claimed barred by Limitation Act LEGISLATION CITED: Limitation Act 1969, s14, s23 CASES CITED: Cheney v Duncan [2001] NSWCA 197; Downey v Bruce (unreported Supreme Court of South Australia 17 December 1992); Gorton v Commonwealth of Australia [1992] 2 Qd R 603 at 607; Grundy v…
Milutinovic v Vardas [2005] NSWSC 1333
Citation 16

…y, or if one takes as the relevant date that when time expired for the lodging of such an appeal, in March 1995 – c.f. Cheney & Wilson v Duncan [2001] NSWCA 197 at [26 – 28]. Even if one takes account of a possibility that time for lodging an appeal might have been extended, it is unrealistic to think that that pos…
Denwest Nominees Pty Ltd v IRDI [2003] WADC 168
Citation 17

…bster v Lampard (1993) 177 CLR 598 Brealey v Board of Management Royal Perth Hospital (1999) 21 WAR 79 Cartledge v E Jopling & Sons Ltd [1963] AC 758 Cheney & Anor v Duncan (2001) 34 MVR 28 Krawszyk v Graham [1966] SASR 73 Pirelli General Cable Works Ltd v Oscar Faber & Partners (a firm) [1983] 2 AC 1 Ramsay v Madgwicks (a firm…
GMU Australia Pty Limited v Timothy Roger Davidson [2003] NSWSC 311
Citation 18

…mitation Act, 1969 (NSW) Trade Practices Act 1974 (C'th) CASES CITED: Argyropoulos v Layton [2002] NSWCA 183; BC 200203324 Cheney and Wilson v Duncan [2001] NSWCA 197 Crisp v Blake (1992) Aust Torts Reports 81-158 Di Sante v Camando Nominees Pty Limited [2000] VSC 211 Doundoulakis v Antony Sdrinis & Co [1989] VR 78…
Pittaway v W H Tutt & Quinlan [2002] QCA 336
Citation 19 (Para 1)

…fter the expiration of the limitation period for bringing proceedings against the primary tortfeasor: Limitation of Actions Act s 10; Cheney v Duncan [2001] NSWCA 197; (2001) 34 MVR 28 at 32 per Ipp AJA; cf Johnson v Perez (1988) 166 CLR 351 at 366-7.…
Wilson v Rigg [2002] NSWCA 246
Citation 20

…conduct application. D. CASES CITED: Agryropoulos v Layton [2002] NSWCA 183; Cartledge v E Jopling & Sons Ltd (1963) AC 758; Cheney & Wilson v Duncan [2001] NSWCA 197; Christopoulos v Angelos (1996) 41 NSWLR 700; The Commonwealth of Australia v Mewett (1977) 191 CLR 471; Doundoulakis v Antony Sdrinis & Co (1989) VR…
Fleming v Segal [2002] NSWSC 42
Citation 21

…1996) 41 NSWLR 713 Maralinga Pty Ltd v Major Enterprises Pty Ltd (1973) 128 CLR 336 Doundoulakis v Antony Sdrinis & Co. [1989] VR 781 Cheney v Duncan [2001] NSWCA 197 Christopoulos v Angelos (1996) 41 NSWLR 700 Australian Gypsum Ltd and Plaster Co. Ltd v Hume Steel Ltd (1930) 45 CLR 54 Commision for the New Towns v…
Walmsley v Cosentino [2001] NSWCA 403
Citation 22

…(1998-1999) 197 CLR 1 Avenhouse v. Hornsby Shire Council (1998) 44 NSWLR 1 Baltic Shipping Co. v. Dillon (1993) 176 CLR 344 Cheny & Wilson v. Duncan [2001] NSWCA 197 Curnick v. Nitschke [2001] NSWCA 176 Doundoulakis v. Antony Sdrinis & Co [1989] VR 781 Farley v. Skinner [2001] 3 WLR 899 Hawkins v. Clayton (1987-19…

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Cases Cited

Christopoulos v Angelos [2005] NSWSC 1029
Citation 1

…eported, 11 December 1996) Johnson v Perez (1988) 166 CLR 351 Nikolaou v Papasavas, Phillips & Company (1989) 166 CLR 394 Registrar-General v Cleaver (1996) 41 NSWLR 713 Hetherington v Mirvac Pty Limited (1999) Aust Torts Reports 81-514 Crisp v Blake (1992) Aust Torts Reports 81-158 Toomey v WALS (1999) NSWSC 560 Wils…
Scarcella v Lettice [2000] NSWCA 289
Citation 2

…ation Act 1969 CASES CITED: Hawkins v Clayton (1988) 164 CLR 539 Wardley Australia Limited v Western Australia (1992) 175 CLR 514 Scarcella v Lettice [2000] NSWCA 289 Pirelli General Cable Works Limited v Oscar Faber & Partners (a firm) [1983] 2 AC 1 Sampson v Zucker (NSW Court of Appeal, unreported, 11 December 19…
Di Sante v Camando Nominees Pty Ltd [2000] VSC 211
Citation 3

…4 Crisp v Blake (1992) Aust Torts Reports 81-158 Toomey v WALS (1999) NSWSC 560 Wilson v Rigg [2000] NSWSC 16 Di Sante v Camando Nominees Pty Limited [2000] VSC 211 Doundoulakis v Antony Sdrinis & Co [1989] VR 781 DECISION: (1) Appeal upheld (2) Summary judgment in favour of the appellant (3) Respondent's claim a…
Wilson v Rigg [2000] NSWSC 16
Citation 4

…ton v Mirvac Pty Limited (1999) Aust Torts Reports 81-514 Crisp v Blake (1992) Aust Torts Reports 81-158 Toomey v WALS (1999) NSWSC 560 Wilson v Rigg [2000] NSWSC 16 Di Sante v Camando Nominees Pty Limited [2000] VSC 211 Doundoulakis v Antony Sdrinis & Co [1989] VR 781 DECISION: (1) Appeal upheld (2) Summary judgm…
Hetherington v Mirvac Pty Ltd and 3 Ors [1999] NSWSC 515
Citation 5

…1996) Johnson v Perez (1988) 166 CLR 351 Nikolaou v Papasavas, Phillips & Company (1989) 166 CLR 394 Registrar-General v Cleaver (1996) 41 NSWLR 713 Hetherington v Mirvac Pty Limited (1999) Aust Torts Reports 81-514 Crisp v Blake (1992) Aust Torts Reports 81-158 Toomey v WALS (1999) NSWSC 560 Wilson v Rigg [2000] NSWSC 16 Di Sante v Cama…
Wardley Australia Ltd v Western Australia [1992] HCA 55
Citation 6

…164 CLR 539. D LEGISLATION CITED: Limitation Act 1969 CASES CITED: Hawkins v Clayton (1988) 164 CLR 539 Wardley Australia Limited v Western Australia (1992) 175 CLR 514 Scarcella v Lettice [2000] NSWCA 289 Pirelli General Cable Works Limited v Oscar Faber & Partners (a firm) [1983] 2 AC 1 Sampson v Zucker (NSW Court…
Blake v Crisp [1992] NSWCA 23
Citation 7

…llips & Company (1989) 166 CLR 394 Registrar-General v Cleaver (1996) 41 NSWLR 713 Hetherington v Mirvac Pty Limited (1999) Aust Torts Reports 81-514 Crisp v Blake (1992) Aust Torts Reports 81-158 Toomey v WALS (1999) NSWSC 560 Wilson v Rigg [2000] NSWSC 16 Di Sante v Camando Nominees Pty Limited [2000] VSC 211 Doundou…
Nikolaou v Papasavas, Phillips & Co [1989] HCA 11
Citation 8

…AC 1 Sampson v Zucker (NSW Court of Appeal, unreported, 11 December 1996) Johnson v Perez (1988) 166 CLR 351 Nikolaou v Papasavas, Phillips & Company (1989) 166 CLR 394 Registrar-General v Cleaver (1996) 41 NSWLR 713 Hetherington v Mirvac Pty Limited (1999) Aust Torts Reports 81-514 Crisp v Blake (1992) Aust Torts Re…
Johnson v Perez [1988] HCA 64
Citation 9

…le Works Limited v Oscar Faber & Partners (a firm) [1983] 2 AC 1 Sampson v Zucker (NSW Court of Appeal, unreported, 11 December 1996) Johnson v Perez (1988) 166 CLR 351 Nikolaou v Papasavas, Phillips & Company (1989) 166 CLR 394 Registrar-General v Cleaver (1996) 41 NSWLR 713 Hetherington v Mirvac Pty Limited (1999)…
Hawkins v Clayton [1988] HCA 15
Citation 10

…r losses arising from statute barring of original damages claim - applicability of exception to general rule espoused by Deane J in Hawkins v Clayton (1988) 164 CLR 539. D LEGISLATION CITED: Limitation Act 1969 CASES CITED: Hawkins v Clayton (1988) 164 CLR 539 Wardley Australia Limited v Western Australia (1992) 175…
[1983] 2 AC 1 [1983] 2 AC 1
Citation 11

…ted v Western Australia (1992) 175 CLR 514 Scarcella v Lettice [2000] NSWCA 289 Pirelli General Cable Works Limited v Oscar Faber & Partners (a firm) [1983] 2 AC 1 Sampson v Zucker (NSW Court of Appeal, unreported, 11 December 1996) Johnson v Perez (1988) 166 CLR 351 Nikolaou v Papasavas, Phillips & Company (198…

Legislation Cited

Limitation Act 1969 (NSW)
1 mention

CITATION:	Cheney & Wilson v Duncan [2001] NSWCA 197
FILE NUMBER(S):	CA 40093/00
HEARING DATE(S):	29/06/01
JUDGMENT DATE:	6 July 2001
PARTIES :	Anthony Arnold Cheney & Peter Neil Wilson v Michael Ronald Duncan
JUDGMENT OF:	Meagher JA at 1; Handley JA at 2; Ipp AJA at 3

LOWER COURT JURISDICTION :	District Court
LOWER COURT FILE NUMBER(S) :	1440/99
LOWER COURT JUDICIAL OFFICER :	O'Reilly DCJ

COUNSEL:	D L Davies SC (Appellants) M W Hadley (Respondent)
SOLICITORS:	Ebsworth & Ebsworth (Appellants) Attwood Marshall (Respondent)
CATCHWORDS:	LIMITATION PERIOD - When does time begin to run? - Limitation Act 1969 - action against solicitor for losses arising from statute barring of original damages claim - applicability of exception to general rule espoused by Deane J in Hawkins v Clayton (1988) 164 CLR 539. D
LEGISLATION CITED:	Limitation Act 1969
CASES CITED:	Hawkins v Clayton (1988) 164 CLR 539 Wardley Australia Limited v Western Australia (1992) 175 CLR 514 Scarcella v Lettice [2000] NSWCA 289 Pirelli General Cable Works Limited v Oscar Faber & Partners (a firm) [1983] 2 AC 1 Sampson v Zucker (NSW Court of Appeal, unreported, 11 December 1996) Johnson v Perez (1988) 166 CLR 351 Nikolaou v Papasavas, Phillips & Company (1989) 166 CLR 394 Registrar-General v Cleaver (1996) 41 NSWLR 713 Hetherington v Mirvac Pty Limited (1999) Aust Torts Reports 81-514 Crisp v Blake (1992) Aust Torts Reports 81-158 Toomey v WALS (1999) NSWSC 560 Wilson v Rigg [2000] NSWSC 16 Di Sante v Camando Nominees Pty Limited [2000] VSC 211 Doundoulakis v Antony Sdrinis & Co [1989] VR 781
DECISION:	(1) Appeal upheld (2) Summary judgment in favour of the appellant (3) Respondent's claim against appellant dismissed with costs (4) Respondent to have certificate under Suitor's Fund Act, if so entitled.