Consolidated Lawyers Ltd v Abu-Mahmoud

Consolidated Lawyers Ltd appealed to the Court of Appeal of New South Wales against a decision of the primary judge that found them liable for professional negligence. The dispute concerned advice provided by Consolidated Lawyers to Mr. Abu-Mahmoud regarding a property development and a subsequent restructure scheme. Mr. Abu-Mahmoud alleged that the advice was negligent and that this negligence caused him significant financial loss.

The Court of Appeal was required to determine whether the primary judge erred in finding that Consolidated Lawyers owed a duty of care to Mr. Abu-Mahmoud, whether that duty was breached by the advice given concerning the restructure scheme, and whether any such breach caused the loss claimed by Mr. Abu-Mahmoud. Additionally, the court considered whether the appellants should be permitted to raise a new argument on appeal, and whether the costs order should be made otherwise than in accordance with the usual rules, specifically in relation to an offer of compromise made under UCPR r 42.14.

The Court of Appeal dismissed the appeal, upholding the primary judge's findings. The court reasoned that the appellants were bound by the conduct of their legal representatives at trial and were therefore not permitted to advance a new argument on appeal that had not been raised or fully explored in the court below. The court also dismissed the application for leave to cross-appeal. Consequently, the appeal and the application for leave to cross-appeal were dismissed with costs.