Lee v Brand

This matter concerned an appeal and cross-appeal before the New South Wales Court of Appeal, constituted by Sheller, Hodgson and Tobias JJA. The primary dispute involved a lender, Mr. Brand, who had obtained judgment against a guarantor, Mr. Sahota, and subsequently sued his solicitor, Mr. Lee, for damages. Mr. Lee, in turn, had sought to cross-claim against Mr. Brand.

The central legal issues before the Court of Appeal were whether Mr. Lee, as solicitor for Mr. Brand in a loan transaction, had also acted for the guarantor, Mr. Sahota, and if so, whether Mr. Brand had suffered actionable damage as a result of Mr. Lee's conduct. The court was also required to determine the appropriate assessment of damages against a solicitor in such circumstances.

The Court of Appeal reasoned that Mr. Lee had not acted for both parties in the transaction, and therefore, Mr. Brand had not suffered damages as a result of any breach of duty by Mr. Lee. The court allowed Mr. Lee's appeal against Mr. Brand, setting aside the orders made against Mr. Lee and dismissing Mr. Brand's cross-claim against Mr. Lee. Mr. Lee's appeal against Mr. Sahota was allowed to the extent of substituting a judgment for damages to be assessed, with the matter remitted to the District Court for that assessment. Mr. Lee's application to pursue a cross-claim was dismissed.