Curnuck v Nitschke

Case [2001] NSWCA 176


CITATION: Curnuck v Nitschke [2001] NSWCA 176
FILE NUMBER(S): CA 40387/00
HEARING DATE(S): 8 June 2001
JUDGMENT DATE:
26 June 2001

PARTIES :


Milton Robert Curnuck (App)
Alan Harold Curnuck (App)
Ivan John Curnuck (App)
Galva Dennis Nitschke (Resp)
John Hayden Williams (Resp)
Trevor John Forbes (Resp)
Bruce Jarrat (Resp)
t/as Sheekey Williams & Nitschke
JUDGMENT OF: Meagher JA at 1; Davies AJA at 2; Fitzgerald AJA at 15
LOWER COURT JURISDICTION : District Court
LOWER COURT
FILE NUMBER(S) :
1479/99
LOWER COURT
JUDICIAL OFFICER :
Delaney DCJ
COUNSEL: A. McInnes QC (App)
M. Stubbs (App)
D. Davies QC (Resp)
D. Roberts (Resp)
SOLICITORS: Phillip Parbury & Associates (App)
McLachlan Chilton (Resp)
CATCHWORDS: Professional negligence - contract - tort - limitation period - instructions to advise and sue third party - assignment and reassignment of cause of action against third party - omission to commence action against third party or to advise of limitation period - breach of contract and tort.
LEGISLATION CITED: Bankruptcy Act 1966
Limitation Act 1969
Trade Practices Act 1974
CASES CITED:
Astley v Austrust Ltd (1999) 197 CLR 1
Central Trust Co v Rafuse (1986) 31 DLR (4th) 481
Chappel v Hart (1998) 72 ALJR 1344
Hawkins v Clayton (1988) 164 CLR 539
Heydon v NRMA (2000) 36 ACSR 462
Hill v Van Erp (1997) 188 CLR 159
Perre v Apand Pty Ltd (1999) 73 ALJR 1190
Rogers v Whitaker (1992) 175 CLR 479
Waimond Pty Ltd v Byrne (1989) 18 NSWLR 642
DECISION: Appeal allowed with costs. Judgment below set aside. Declare that the solicitors breached their contractual duty and their duty under the law of tort to the clients. Remit to the District Court for a different judge to determine whether the solicitor's breach caused the clients any loss. The costs of the District Court proceedings be reserved to the judge who determines the issue of damages.

IN THE SUPREME COURT
OF NEW SOUTH WALES
COURT OF APPEAL


40387/00


MEAGHER JA
DAVIES AJA
FITZGERALD AJA


Curnuck v Nitschke

1   Meagher JA: I agree both with Fitzgerald AJA and with Davies AJA. In my opinion the orders suggested by Fitzgerald AJA should be made.

2   DAVIES AJA: In Henderson v Merrett Syndicates Ltd [1995] 2 AC 145, in which the principal judgment was given by Lord Goff, with whom Lord Keith, Lord Browne-Wilkinson, Lord Mustill and Lord Nolan agreed, it was held that duties of care arising under both contract and tort may be owed concurrently and may be sued concurrently. At p 191, Lord Goff cited Le Dain J in Central Trust Co v Rafuse (1986) 31 DLR (4th) 481, where his Honour said, at p 522:-

        " A concurrent or alternative liability in tort will not be admitted if its effect would be to permit the plaintiff to circumvent or escape a contractual exclusion or limitation of liability for the act or omission that would constitute the tort. Subject to this qualification, where concurrent liability in tort and contract exists the…

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AGLC
Curnuck v Nitschke [2001] NSWCA 176
Case
[2001] NSWCA 176
Decision Date

CaseChat Overview and Summary

The Supreme Court of New South Wales, Court of Appeal, considered a dispute between the appellants, Curnuck and others (the clients), and the respondent, Nitschke (the solicitors). The clients alleged that the solicitors had negligently failed to commence proceedings against a third party within the relevant limitation period, thereby causing them loss. The clients had assigned their cause of action against the third party to another entity, and subsequently reassigned it back to themselves.

The central legal issues before the Court of Appeal were whether the solicitors had breached their contractual and tortious duties to the clients by failing to advise them of the limitation period and to commence proceedings against the third party. The Court also had to consider the effect of the assignment and reassignment of the cause of action on the clients' ability to pursue their claim against the solicitors.

The Court of Appeal found that the solicitors had breached their contractual duty to exercise reasonable care and skill in advising and acting for the clients. This duty extended to advising on the limitation period for a potential claim against a third party and taking steps to preserve that claim. The Court also held that the solicitors had breached their duty of care in tort. The assignment and reassignment of the cause of action were held not to extinguish the clients' right to sue the solicitors for the loss caused by the solicitors' negligence.

The Court of Appeal allowed the appeal, setting aside the judgment below. It declared that the solicitors had breached their contractual and tortious duties to the clients. The matter was remitted to the District Court for a different judge to determine whether these breaches caused the clients any loss, with the costs of the District Court proceedings to be reserved for that judge.

Orders

Orders of the court

Appeal allowed with costs. Judgment below set aside. Declare that the solicitors breached their contractual duty and their duty under the law of tort to the clients. Remit to the District Court for a different judge to determine whether the solicitor's breach caused the clients any loss. The costs of the District Court proceedings be reserved to the judge who determines the issue of damages.

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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