Lindsay-Owen v HWL Ebsworth Lawyers (No 2)

The case involved a claim for professional negligence against HWL Ebsworth Lawyers by Lindsay-Owen. The dispute centred on the firm's alleged failure to include a key clause in a joint venture agreement related to a large-scale property development. Lindsay-Owen contended that the omission led to significant losses, including the loss of a chance to amend the agreement and to form a joint venture with an alternative partner. The matter was heard in the Supreme Court of New South Wales.

The primary legal issues were whether HWL Ebsworth Lawyers owed a duty of care to Lindsay-Owen, whether there was a breach of that duty, and if the breach caused the claimed losses. Additionally, the court needed to determine the appropriate quantum of damages for the losses incurred due to the alleged negligence, particularly focusing on the loss from the inability to develop the land in accordance with the desired joint venture agreement. The court also had to assess the admissibility and weight of opinion evidence regarding the hypothetical outcomes of the property development.

The court found that HWL Ebsworth Lawyers did owe a duty of care to Lindsay-Owen and that this duty was breached by the omission of the critical clause in the joint venture agreement. The court also determined that the breach caused the loss of the chance to amend the agreement and potentially form a joint venture with an alternative partner. Regarding damages, the court considered the evidence on how a hypothetical development would have proceeded and accepted that the losses were foreseeable and direct consequences of the negligence. The court held that the loss of chance to amend the agreement and to form an alternative joint venture was a loss of a substantial chance, which could be quantified. The court awarded damages to Lindsay-Owen, reflecting the loss of the chance to develop the land as per the intended joint venture agreement and the consequential financial losses.

The final orders of the court included a determination that HWL Ebsworth Lawyers were liable for the negligence and awarded Lindsay-Owen damages in the amount of $6,486,400, plus interest. The court also ordered that the costs of the proceedings be paid by HWL Ebsworth Lawyers.