Kekatos v Sanson & Ano

Case [2009] NSWCA 171



New South Wales


Court of Appeal


CITATION: Kekatos v Sanson & Ano [2009] NSWCA 171
HEARING DATE(S): 19/03/2009
 
JUDGMENT DATE: 

2 July 2009
JUDGMENT OF: Tobias JA at 1; McColl JA at 2; Handley AJA at 3
DECISION: (1) Appeal allowed with costs.
(2) Judgment of the District Court set aside, and in lieu thereof substitute judgment for the first defendant in the action with costs.
(3) The respondents are to have a certificate under the Suitors Fund Act.
CATCHWORDS: TORTS - negligence – duty of solicitor – to exercise reasonable care – no duty to ensure particular result. - SOLICITOR – negligence – duty to exercise reasonable care – no duty to ensure particular result.
CASES CITED: Roads and Traffic Authority of New South Wales v Dederer [2007] HCA 42
PARTIES: Kekatos t/asKekatos Lawyers - Appellant
Ruthelise Jay Sansom & anor - Respondent
FILE NUMBER(S): CA 40153/2008
COUNSEL: N C Hutley SC and M C L Dicker - Appellant
J Gormley SC and M Galvin - Respondent
SOLICITORS: Connery Partners - Appellant
Reimer Winter Williamson - Respondent
LOWER COURT JURISDICTION: District Court
LOWER COURT FILE NUMBER(S): DC3934/2005
LOWER COURT JUDICIAL OFFICER: Truss DCJ
LOWER COURT DATE OF DECISION: 12/05/2008





                          40153/08

                          TOBIAS JA
                          MCCOLL JA
                          HANDLEY AJA

                          THURSDAY 2 JULY 2009

JIM KEKATOS T/as J KEKATOS LAWYERS v RUTHELISE JAY


SANSOM & ANOR

CATCHWORDS

      NEGLIGENCE – duty of solicitor – to exercise reasonable care – no duty to ensure particular result.

      SOLICITOR – negligence – duty to exercise reasonable care – no duty to ensure particular result.

      HEADNOTES

      The appellant (the solicitor) acted for the respondents (the purchasers) on the purchase of an investment unit which they had not inspected. Early in December 2003 the purchasers signed a contract for the purchase of unit 44 shown in a draft plan annexed. By that time an amended strata plan had been registered and unit 44 had been renumbered as unit 46. It was a one-bedroom unit. Unit 44 in the registered plan, formerly unit 42, was a two-bedroom unit. The purchasers left that contract with a sales representative but gave it to the solicitor when they met him on 18 December. The solicitor explained that the unit number had changed and that they would have to sign a new contract. They asked him whether the unit had two bedrooms but the solicitor did not know and advised them to inspect the unit and get back to him if there was a problem. Their attempts to arrange an inspection were fobbed off by the sales representative but they did not advise the solicitor about this and they later signed a contract for the purchase of unit 46 which was exchanged on 30 January 2004. The purchase was completed the same day. The purchasers thought they were buying a two-bedroom unit. The trial judge held that the solicitor had a duty to “ensure” that the purchasers inspected the unit before exchange and awarded them damages. The solicitor appealed. HELD: (1) the solicitor’s duty…

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AGLC
Kekatos v Sanson & Ano [2009] NSWCA 171
Case
[2009] NSWCA 171
Decision Date

CaseChat Overview and Summary

The appeal concerned a claim for professional negligence brought by the respondents, Mr and Mrs Sanson, against the appellant, Mr Kekatos, a solicitor. The Sansons alleged that Mr Kekatos had been negligent in his conduct of litigation on their behalf, which resulted in a less favourable outcome than they had anticipated. The matter was heard in the Court of Appeal of New South Wales.

The central legal issue before the Court of Appeal was whether Mr Kekatos had breached his duty of care to his clients, the Sansons. Specifically, the court had to determine if the solicitor's conduct fell below the standard of reasonable care and skill expected of a solicitor in his position, and whether this alleged breach caused the Sansons loss. The court was not asked to determine whether the solicitor had guaranteed a particular outcome in the litigation.

The Court of Appeal found that the Sansons had failed to establish that Mr Kekatos had acted negligently. The court reasoned that a solicitor's duty is to exercise reasonable care and skill, not to guarantee a particular result. The evidence did not demonstrate that Mr Kekatos's actions or advice fell below the required standard of care, nor that any alternative course of action would have necessarily led to a better outcome for the Sansons.

Consequently, the appeal was allowed, the judgment of the District Court was set aside, and judgment was entered for the first defendant, Mr Kekatos, with costs. The respondents were also granted a certificate under the Suitors Fund Act.

Orders

Orders of the court

(1) Appeal allowed with costs. (2) Judgment of the District Court set aside, and in lieu thereof substitute judgment for the first defendant in the action with costs. (3) The respondents are to have a certificate under the Suitors Fund Act.

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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