NEW SOUTH WALES COURT OF APPEAL
CITATION:
HANCOCK v ARNOLD; DODD v ARNOLD [2008] NSWCA 254
FILE NUMBER(S):
40619/07;
40639/07
HEARING DATE(S):
17 July 2008
JUDGMENT DATE:
15 October 2008
PARTIES:
In matter No. CA 40619/07:
Ken Hancock – First Appellant
John Hill – Second Appellant
Jason Arnold – First Respondent
John William Dodd – Second Respondent
In matter No. CA 40639/07:
John William Dodd – Appellant
Jason Arnold – First Respondent
Ken Hancock and John Hill – Second Respondents
JUDGMENT OF:
Ipp JA McColl JA Basten JA
LOWER COURT JURISDICTION:
Supreme Court
LOWER COURT FILE NUMBER(S):
SC 20397/02
LOWER COURT JUDICIAL OFFICER:
Hulme J
LOWER COURT DATE OF DECISION:
24 March 2006; 8 September 2006; 28 June 2007; 13 September 2007
LOWER COURT MEDIUM NEUTRAL CITATION:
Arnold v Hancock [2006] NSWSC 156;
Arnold v Hancock (Damages 2) [2007] NSWSC 659
COUNSEL:
In matter No. 40619/07:
G Watson/J Sheller –Appellants
C S Leahy/T Boyd – First Respondent
M Windsor – Second Respondent
In matter No. 40639/07:M Windsor – Appellant
G Watson/J Sheller –Respondents
SOLICITORS:
In matter No. 40619/07:
Ebsworth & Ebsworth –Appellants
Herbert Weller – First Respondent
Minter Ellison – Second Respondent
In matter No. 40639/07:
Minter Ellison – Appellant
Ebsworth & Ebsworth – First and Second Respondents
CATCHWORDS:
DAMAGES – differences between common law damages claim and workers’ compensation claim – whether common law damages claim more beneficial for plaintiff – [<i>Motor Accidents Act</i>] 1988 (NSW) ss 43, 43A – [<i>Workers Compensation Act</i>] 1987 (NSW) s 151A
LEGAL PRACTITIONERS – whether breach of duty of care to client by solicitor and barrister – failure to advise about common law damages claim under the [<i>Motor Accidents Act</i>] 1988 (NSW) – where advice given about workers’ compensation claim and where claim settled – where plaintiff lost interest in pursuing damages claim – whether solicitor and barrister gave adequate advice about superannuation, future out-of-pocket expenses and future economic loss – whether failure to advise caused loss to plaintiff – whether implied term in retainer to give definitive advice by specific date – obligation to provide timely advice – [<i>Motor Accidents Act</i>] 1988 (NSW) ss 43, 43A – [<i>Workers Compensation Act</i>] 1987 (NSW) s 151A
WORKERS’ COMPENSATION – motor vehicle accident – differences between workers’ compensation claim and common law damages claim – [<i>Motor Accidents Act</i>] 1988 (NSW) ss 43, 43A – [<i>Workers Compensation Act</i>] 1987 (NSW) s 151A
LEGISLATION CITED:
[<i>Motor Accidents Act</i>] 1988 (NSW), ss 43, 43A; Part 6
[<i>Workers Compensation Act</i>] 1987 (NSW), s 151A
CATEGORY:
Principal judgment
CASES CITED:
[<i>Astley v Austrust Ltd</i>] [1999] HCA 6; 197 CLR 1
[<i>BP Refinery (Westernport) Pty Ltd v Shire of Hastings</i>] (1977) 180 CLR 266
[<i>Chamberlain v Ormsby t/as Ormsby Flower</i>] [2005] NSWCA 454
[<i>Codelfa Construction Pty Ltd v State Rail Authority (NSW)</i>] [1982] HCA 24; 149 CLR 337
[<i>Hick v Raymond & Reid</i>] [1893] AC 22
[<i>Rosenberg v Percival</i>] [2001] HCA 18; 205 CLR 434
[<i>Schmidt v Townsends</i>] [2000] SASC 363
[<i>Winnote Pty Ltd v Page</i>] [2006]…
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- AGLC
- Hancock v Arnold; Dodd v Arnold [2008] NSWCA 254
- Case
- [2008] NSWCA 254
- Decision Date
CaseChat Overview and Summary
The primary legal issues before the court were whether the solicitor and barrister breached their duty of care to the plaintiffs by failing to provide comprehensive advice regarding the differences between a common law damages claim and a workers' compensation claim, particularly concerning potential entitlements for superannuation, future out-of-pocket expenses, and future economic loss. The court also had to determine whether any such failure to advise caused loss to the plaintiffs, and whether there was an implied term in the retainer requiring definitive advice by a specific date, thereby establishing an obligation to provide timely advice.
The Court of Appeal considered the provisions of sections 43 and 43A of the *Motor Accidents Act 1988* (NSW) and section 151A of the *Workers Compensation Act 1987* (NSW) in assessing the potential benefits of a common law damages claim compared to a workers' compensation claim. The court reasoned that the legal representatives had a duty to advise their clients on all available avenues of recovery and the relative advantages and disadvantages of each. The failure to provide adequate advice on the potential for a common law damages claim, which could have yielded greater compensation, constituted a breach of the duty of care.
In relation to the appeal by the solicitors, the Court of Appeal allowed the appeal and set aside the orders made in the Common Law Division on 24 August 2007.
Orders
Orders of the court
In relation to the appeal by the solicitors in matter No. 40619/07: (1) Allow the appeal and set aside the orders made in the Common Law Division on 24 August 2007.
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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