Jawatts Bakery Supplies Pty Ltd v. Parer & Ors

The case of Jawatts Bakery Supplies Pty Ltd v. Parer & Ors involved a dispute between a business, Jawatts Bakery Supplies, and their former solicitors, Parer & Ors. Jawatts Bakery Supplies had entered into a contract to purchase a business but claimed that their solicitors negligently failed to advise them about the absence of an effective restraint of trade clause in the purchase contract. They also alleged that the solicitors had advised them that such a clause would be included and that there was no possibility of terminating and renegotiating the contract if finance approval was not obtained.

The court was tasked with determining whether the solicitors owed a duty of care to the client in providing advice about the terms of the contract, particularly concerning the restraint of trade clause. Additionally, the court had to consider whether the failure to advise about the potential to terminate and renegotiate the contract constituted a breach of that duty of care and whether such a breach resulted in loss to the client.

The court found that the solicitors did not owe a duty of care to advise the client about the absence of a restraint of trade clause, as it was not part of the scope of their retainer. The court further held that there was no breach of duty in failing to advise the client about the possibility of terminating and renegotiating the contract. The court determined that the client could not demonstrate that they would have terminated the contract if proper advice had been given, and thus, no loss resulted from the alleged failure to advise. Consequently, the court dismissed the proceeding.