Kambouris v Tahmazis (No 2)

IN THE SUPREME COURT OF VICTORIA Not Restricted

AT MELBOURNE
COMMERCIAL COURT

S CI 2007 10201

BETWEEN:

POLYXENI KAMBOURIS (also known as JENNY KAMBOURIS)	Plaintiff
v
THEO TAHMAZIS (who is sued in his capacity as personal representative of the estate of BILL FLOROS) (also known as VASILIOS FLOROS) and others (according to the schedule attached)	Defendants
AND BETWEEN:
THEO TAHMAZIS (who is sued in his capacity as personal representative of the estate of BILL FLOROS) (also known as VASILIOS FLOROS)	Plaintiff by Counterclaim
- and -
POLYXENI KAMBOURIS (also known as JENNY KAMBOURIS) and others (according to the schedule attached)	Defendants by Counterclaim

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JUDGE:	Lansdowne AsJ
WHERE HELD:	Melbourne
DATE OF HEARING:	4, 5, 6, 9, 10, 11, 26 and 27 February 2015 and further written submissions on 17 and 27 March 2015.
DATE OF JUDGMENT:	30 April 2015
CASE MAY BE CITED AS:	Kambouris v Tahmazis (No 2)
MEDIUM NEUTRAL CITATION:	[2015] VSC 174

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NEGLIGENCE – Solicitor found liable in earlier trial for failing to inform his client on her entering into guarantees that a promised security had not been provided – Assessment of damages referred to an associate judge – Client claims the subsequent loss of her security properties – Whether causation established in the earlier trial – Whether that loss was caused by the solicitor’s negligence – Application of the Wrongs Act1958 (Vic) – Factual causation – Negligent omission – No transaction counterfactual – Plaintiff must show that not entering the transaction would have prevented the loss, not just that it may have – Factual causation not proved – Scope of liability – Not proved that it would be appropriate to extend the solicitor’s liability to the loss claimed.

ASSESSMENT OF DAMAGES FOR NEGLIGENCE – Deduction of pre-existing liability from quantum – Nominal damages for breach of retainer – Wrongs Act 1958 (Vic), s 51.

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APPEARANCES:	Counsel	Solicitors
For the Plaintiff	Mr R Cook with Ms S Varney	AMC Law & Associates
For the Defendants	Mr N de Young	Minter Ellison

TABLE OF CONTENTS

Introduction......................................................................................................................................... 1

Facts and procedural history............................................................................................................ 2

The plaintiff’s claim before Judd J and in this trial................................................................... 12

Has causation already been determined?.................................................................................... 19

Legal Principles................................................................................................................................ 23

Common law or the Wrongs Act?............................................................................................. 23

Factual causation in the case of a negligent omission........................................................... 26

Section 51(2): here not applicable............................................................................................. 30

Scope of liability.......................................................................................................................... 30

Factual Causation............................................................................................................................. 31

The elements of the plaintiff’s case.......................................................................................... 31

Evidence in the plaintiff’s case.................................................................................................. 35

The plaintiff’s evidence.................................................................................................... 35

Mr Kambouris’ evidence.................................................................................................. 37

Assessment of the evidence....................................................................................................... 38

Credit.................................................................................................................................. 38

Conduct in relation to guarantees................................................................................... 44

Acting as her husband requested.................................................................................... 51

Reasons to proceed with the restructure....................................................................... 54

Legal costs.................................................................................................................................... 67

Repayment of $100,000 and lost interest thereon................................................................... 67

Summary of conclusions on factual causation....................................................................... 68

Scope of Liability............................................................................................................................. 71

Pre-existing liability................................................................................................................... 76

Post negligence increase in liability......................................................................................... 78

Continued use of The Boulevard............................................................................................. 80

The nature of the duty, the breach and the loss..................................................................... 80

Quantum............................................................................................................................................ 82

Nominal damages............................................................................................................................. 86

Orders.................................................................................................................................................…