Johnson & Ors v Perez; Creed v Perez; Nickolaou v Papasavas, Phillips & Co (A Firm)

These appeals concerned actions brought by plaintiffs against their solicitors for negligence in failing to institute or prosecute personal injury claims within the relevant limitation periods. The plaintiffs alleged that as a result of their solicitors' failures, their original claims for damages were lost. The appeals were heard together in the High Court of Australia.

The central legal issue before the High Court was the proper method for assessing damages in such negligence claims against solicitors. Specifically, the court had to determine whether the damages should be assessed as at the date of the trial of the action against the solicitor, or as at the date when the plaintiff's original cause of action was lost or when the original action might have been tried had the solicitor not been negligent.

The appellants, representing the plaintiffs, contended that damages should be assessed at the latter date, arguing that this approach would accurately compensate the plaintiff for the loss of their original claim. This would include compensation for the loss of the opportunity to recover the full amount of damages that would have been awarded in the original action, as well as an amount to compensate for being deprived of the use of that money. The court acknowledged that the solicitor's liability could arise in contract or tort, and that the loss of the prospect of recovery against a third party was the primary focus in these cases, rather than issues such as increased legal fees due to delay.