Gattellaro v Spencer

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Court of Appeal

New South Wales

Case Title: Gattellaro v Spencer and ors
Medium Neutral Citation: [2011] NSWCA 415
Hearing Date(s): 17 November 2011
Decision Date: 20 December 2011
Jurisdiction:
Before:

Beazley JA at [1]; 
Young JA at [111]; 
Sackville AJA at [112]

Decision:

The appeal is dismissed with costs.
[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

Catchwords:

NEGLIGENCE - duty of care - solicitors - whether breach of professional duty - failure to convey offer of settlement to appellant - causation - whether trial judge's conclusion on causation was correct

LEGAL PROFESSION - solicitors - advocate's immunity - question not arising where breach of duty and causation not established

Legislation Cited:

Contracts Review Act 1980
Real Property Act 1900

Cases Cited:

Commercial Bank of Australia Ltd v Amadio [1983] HCA 14; 151 CLR 447
D'Orta-Ekenaike v Victoria Legal Aid [2005] HCA 12; (2005) 223 CLR 1
Garcia v National Australia Bank Ltd [1998] HCA 48; 194 CLR 395
Gattellaro & Anor v Westpac Banking Corporation [2001] NSWCA 76
Gattellaro v Westpac Banking Corporation [2004] HCA 6; (2004) 204 ALR 258
Marston v Charles H Griffith & Co Pty Ltd (1982) 3 NSWLR 294
Westpac Bankings Corporation v Gattellaro [2000] NSWSC 775

Texts Cited:
Category: Principal judgment
Parties:

Yolanda Gattellaro (Appellant
Keith Spencer (First Respondent)
William Whitby (Second Respondent)
David J Adams (Third Respondent)

Representation
- Counsel:

D W Elliott;  G J Smith (Appellant)
P Morris (Respondents)

- Solicitors:

Julie A Orsini (Appellant)
Yeldham Price Obrien Lusk (Respondents)

File number(s): 2005/269546
Decision Under Appeal
- Court / Tribunal:
- Before: Hislop J
- Date of Decision: 06 October 2010
- Citation: Gattellaro v Spencer [2010] NSWSC 1122
- Court File Number(s) 2005/269546
Publication Restriction:

HEADNOTE

[This headnote is not to be read as part of the judgment]

The appellant and her husband executed two mortgages, the first in 1977 and the second in 1986, in favour of Westpac, over their family home. Both mortgages were all monies first and third party mortgages. The 1986 mortgage was entered into for the purposes of securing the consolidated indebtedness of the appellant and her husband and their construction company, Falgat Constructions Pty Limited (Falgat). Notwithstanding the entry into the 1986 mortgage, the 1977 mortgage was never discharged. In 1985, the appellant also executed a guarantee of the debts of Falgat, in favour of Westpac.
In 1989 Westpac sought repayment of the outstanding indebtedness under the loan facility provided in 1986. It subsequently commenced proceedings seeking a writ of possession of the family home and judgment for a money sum. There then followed protracted litigation, which ended unsuccessfully for…

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Details
Case
[2011] NSWCA 415
Decision Date

CaseChat Overview and Summary

The appellant, Ms. Gattellaro, brought proceedings against the respondent, Mr. Spencer, a solicitor, alleging negligence in his professional conduct. The dispute centred on Mr. Spencer's alleged failure to convey an offer of settlement made by the third party to Ms. Gattellaro during earlier litigation. The appeal was heard by Beazley and Young JJA and Sackville AJA.

The primary legal issues before the court were whether Mr. Spencer owed a duty of care to Ms. Gattellaro, whether he breached that duty by failing to communicate the settlement offer, and crucially, whether such a breach caused Ms. Gattellaro any loss. The court also considered whether the doctrine of advocate's immunity was relevant, though this was contingent on the establishment of a breach of duty and causation.

The court found that the trial judge's conclusion on causation was correct. It was held that even if Mr. Spencer had failed to convey the settlement offer, Ms. Gattellaro had not established that she would have accepted the offer or that accepting it would have resulted in a better outcome for her. Without proof of causation, the claim for negligence could not succeed. Consequently, the issue of advocate's immunity did not arise.

The appeal was dismissed, and Ms. Gattellaro was ordered to pay Mr. Spencer's costs.

Orders

Orders of the court

Appeal dismissed with costs.

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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