Fincorp Investments Limited v Trazmar Pty Limited

Fincorp Investments Limited brought an action against Trazmar Pty Limited, a law firm, for alleged professional negligence. After settling the original proceedings, Fincorp sought to claim against the Fidelity Fund, which is intended to compensate for professional negligence. The Law Society of New South Wales rejected the claim, prompting Fincorp to appeal to the Supreme Court of New South Wales. The primary issue before the court was whether it had jurisdiction to hear an appeal on the merits of the claim against the Fidelity Fund. Fincorp argued that the Law Society had determined the claim on its merits, and thus, the court should review that decision.

The court considered the statutory framework governing the Fidelity Fund and the process for claims against it. It held that the Law Society's role was not to determine the merits of the claim but to assess whether the claim was eligible for compensation under the Fund. Since the Law Society had not made a decision on the merits, there was no basis for the court to review such a decision. Consequently, the court found that it did not have jurisdiction to determine the merits of the application. The court also noted that the issue of whether the claim was time-barred was separate from the question of jurisdiction and did not affect the court's authority to hear the jurisdictional appeal.

The court concluded that it lacked jurisdiction to determine the merits of the application for a review of the Law Society's decision. It dismissed the appeal, stating that Fincorp had no right to have the merits of the claim determined by the court nor to appeal to the Supreme Court regarding the merits of its case. Additionally, the court found that the Law Society had no obligation to investigate a claim that was time-barred. The court ordered that the appeal be dismissed with costs to be paid by Fincorp.