FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA
(DIVISION 1) APPELLATE JURISDICTION
Daily & Daily (No 4) [2024] FedCFamC1A 185
Appeal from: Daily & Daily(No 3) [2024] FedCFamC1F 47 Appeal number: NAA 30 of 2024 File number: ADC 4606 of 2018 Judgment of: ALDRIDGE, TREE & CAMPTON JJ Date of judgment: 17 October 2024 Catchwords: FAMILY LAW – APPEAL – Property – Where the husband appeals from final property settlement orders – Superannuation – Where the husband contends the primary judge erred in not adopting the diminished value of his superannuation in the balance sheet due to his legal fees – Where the parties conducted the litigation from the common position that legal fees would be added back to the property pool – Where the matters the husband contends were ignored were explicitly taken into account – Where the appeal against the property settlement orders fails – Binding Financial Agreement – Damages – Where the husband appeals from the finding that he did not suffer any compensatory loss – Where notwithstanding the finding of hardship the husband’s claim for compensatory damages required assessment – Error identified – Appeal allowed in part – Damages assessment remitted for re-hearing – Costs certificates granted.
FAMILY LAW – CROSS-APPEAL – Binding Financial Agreement – Negligence – Where the husband’s former solicitors cross-appeal against the award of damages – Whether the primary judge erred in finding that the husband’s contract claim was not statute barred – Consideration of Orwin v Rickards [2020] VSCA 225 and Davys Burton v Thom [2009] 1 NZLR 437 – Where the “damaged asset” characterisation of when damage is first sustained under a negligently drawn contract is neither binding nor persuasive when applied to Binding Financial Agreements – Where the advice of the solicitors was clearly inadequate – Where the cross-appeal fails – Cross-appeal dismissed.
Legislation: Family Law Act 1975 (Cth) ss 75, 79, 90DA, 90K
Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth) r 13.23
Limitations of Actions Act 1936 (SA) s 48
Cases cited: Boensch v Pascoe (2019) 268 CLR 593; [2019] HCA 49
Chorn and Hopkins (2004) FLC 93-204; [2004] FamCA 633
Daily & Daily (2020) 61 Fam LR 75; [2020] FamCA 486
Daily & Daily (2020) FLC 93-999; [2020] FamCAFC 304
Daily & Daily [2023] FedCFamC1F 222
Daily & Daily (No 2) [2023] FedCFamC1F 858
Daily & Daily (No 2) (2023) FLC 94-151; [2023] FedCFamC1A 122
Davys Burton v Thom [2009] 1 NZLR 437; [2008] NZSC 65
House v The King (1936) 55 CLR 499; [1936] HCA 40
Metwally v University of Wollongong (1985) 60 ALR 68; [1985] HCA 28
Orwin v Rickards [2020] VSCA 225
Thompson v Schacht (2014) 53 Fam LR 133; [2014] NSWCA 247
Wardley Australia Ltd v Western Australia (1992) 175 CLR 514; [1992] HCA 55
Number of paragraphs: 147 Date of hearing: 19 September 2024 Place: Heard in Sydney, delivered…
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- Daily & Daily (No 4) [2024] FedCFamC1A 185
- Case
- [2024] FedCFamC1A 185
- Decision Date
CaseChat Overview and Summary
The husband also appeals against the finding that he did not suffer any compensatory loss. The court identified an error in the assessment of damages and allowed the appeal in part. The assessment of damages for the solicitors' negligence is remitted for rehearing before a different judge. The solicitors' cross-appeal against the award of damages fails as the advice they provided was clearly inadequate. The court grants costs certificates to both the husband and the solicitors.
Orders
Orders of the court
NAA 30 of 2024
ADC 4606 of 2018
FEDERAL CIRCUIT AND FAMILY COURT OF AUSTRALIA
DIVISION 1 APPELLATE JURISDICTION
BETWEEN:
MR DAILY
Appellant / Cross-Respondent
AND:
MS DAILY
First Respondent
AND:
R LAWYERS
Second Respondent / Cross-Appellant
ORDER MADE BY:
ALDRIDGE, TREE & CAMPTON JJ
DATE OF ORDER:
17 OCTOBER 2024
THE COURT ORDERS THAT:
1. The appellant’s Application in an Appeal filed 30 August 2024 is dismissed.
2. The appeal is allowed in part.
3. Order 6 of the orders of the Federal Circuit and Family Court of Australia (Division 1) made 9 February 2024 is set aside.
4. The assessment of damages for the second respondent’s negligence is remitted for rehearing before a judge of the Federal Circuit and Family Court of Australia (Division 1) other than the primary judge.
5. The second respondent’s Notice of Contention filed 8 March 2024 is dismissed.
6. The second respondent’s cross-appeal is dismissed.
7. The appellant is to pay the first respondent’s costs of the appeal in the sum of $24,800 within 28 days.
8. The appellant is granted a costs certificate pursuant to s 9 of the Federal Proceedings (Costs) Act 1981 (Cth), being a certificate stating that, in the opinion of the Court, it would be appropriate for the Attorney-General to authorise a payment under that Act to the appellant in respect of the costs incurred by him in the appeal.
9. The second respondent is granted a costs certificate pursuant to s 6 of the Federal Proceedings (Costs) Act 1981 (Cth), being a certificate stating that, in the opinion of the Court, it would be appropriate for the Attorney-General to authorise a payment under that Act to the second respondent in respect of the costs incurred by it in the appeal.
10. The Court grants the appellant and second respondent a costs certificate pursuant to s 8 of the Federal Proceedings (Costs) Act 1981 (Cth) being certificates that, in the opinion of the Court, it would be appropriate for the Attorney-General to authorise payments under that Act to the parties in respect of the costs incurred by them in relation to the rehearing.
Note: The form of the order is subject to the entry in the Court’s records.
Note: This copy of the Court’s Reasons for judgment may be subject to review to remedy minor typographical or grammatical errors (r 10.14(b) Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth)), or to record a variation to the order pursuant to r 10.13 Federal Circuit and Family Court of Australia (Family Law) Rules 2021 (Cth).
Background
Background to the litigation
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
Later at 532–533 they continued:In the result, we agree with the decision of von Doussa J. in S.W.F. Hoists & Industrial Equipment Pty. Ltd. v. State Government Insurance Commission. There the insured sued the insurer for loss suffered as a result of a misrepresentation as to the extent of the indemnity or liability coverage provided by a proposed contract of insurance. His Honour held that actionable actual loss (as opposed to a mere potential for loss) occurred only when the insured was called on by a third party to make payments against which it would have been entitled to be indemnified by the insurer under the contract as represented. When the events entitling the third party to make the demand for payment occurred and when the insurer indicated, prior to the making of that demand, that it would not indemnify the insured against any such demand, there was no more than a potential for loss. S.W.F. Hoists and Zoneff v. Elcom Credit Union Ltd. are to be distinguished from the English insurance cases Iron Trade Mutual Insurance Co. Ltd. v. J.K. Buckenham Ltd. and Islander Trucking Ltd. in that the policies of insurance in the Australian cases were worth what was paid for them.The conclusion which we have reached with respect to the time when the plaintiff first suffers loss in respect of contingent loss or liability accords with the comment of Gaudron J. in Hawkins v. Clayton [(1988) 164 CLR at 601]):“[I]f the interest infringed is an interest in recouping moneys advanced it may be appropriate to fix the time of accrual of the cause of action when recoupment becomes impossible rather than at the time when the antecedent right to recoup should have come into existence, for the actual loss is sustained only when recoupment becomes impossible.” (Emphasis added)Gaudron J. went on to point out [at 602]:“It would be too simplistic to restrict analysis of economic loss merely to a consideration of reduced value or increased liability.”The conclusion which we have reached is reinforced by the general considerations to which we referred earlier. It is unjust and unreasonable to expect the plaintiff to commence proceedings before the contingency is fulfilled. If an action is commenced before that date, it will fail if the events so transpire that it becomes clear that no loss is, or will be, incurred. Moreover, the plaintiff will run the risk that damages will be estimated on a contingency basis, in which event the compensation awarded may not fully compensate the plaintiff for the loss ultimately suffered. These practical consequences which would follow from an adoption of the view for which the appellants contend outweigh the strength of the argument that the principle applicable to the cases in which the plaintiff acquires property (or a chose in action) should be extended to cases where an agreement subjects the plaintiff to a contingent loss. In such cases, it is fair and sensible to say that the plaintiff does not incur loss until the contingency is fulfilled.(Bold emphasis added, footnotes omitted)