Lucantonio v Stichter

Case [2014] NSWCA 5


Court of Appeal


Supreme Court


New South Wales

Medium Neutral Citation: Lucantonio v Stichter [2014] NSWCA 5
Hearing dates:4 March 2013
Decision date: 06 February 2014
Before: McColl JA at [1], Basten JA at [96], Barrett JA at [145]
Decision:

(1) Appeal dismissed with costs.

(2) Cross-appeal dismissed.

[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

Catchwords: TORTS - professional negligence - causation - where appellant retained respondent solicitor on purchase of commercial property - where appellant paid deposit on property to vendor - where appellant was subsequently advised that proposed redevelopment of property could not proceed without further council approval and increased building costs - where appellant unsuccessfully sought to postpone settlement and negotiate reduced price or compensation with vendor - where appellant failed to complete contract following service of a notice to complete and vendor terminated contract - where respondent negligently failed to prove timely advice to the appellant following service of the notice to complete that completion of the contract was the "safest option" - whether respondent's negligence caused the appellant's loss - whether appellant would have completed the contract even if the respondent had provided him timely advice
Legislation Cited: Civil Liability Act 2002
Conveyancing Act 1919
Environmental Planning and Assessment Act 1979
Fair Trading Act 1987
Cases Cited: Adeels Palace Pty Ltd v Mourbarak [2009] HCA 48; (2009) 239 CLR 420
Hunt & Hunt Lawyers (a firm) v Mitchell Morgan Nominees Pty Ltd [2013] HCA 10; (2013) 247 CLR 613
Kocis v SE Dickens Pty Ltd [1998] 3 VR 408
Lesandu Blacktown Pty Ltd v Gonzalez [2013] NSWCA 8
Lucantonio v Ciofuli [2002] NSWSC 509
Lucantonio v Ciofuli [2003] NSWSC 1058
Strong v Woolworths Ltd [2012] HCA 5; (2012) 246 CLR 182
Vairy v Wyong Shire Council [2005] HCA 62; (2005) 223 CLR 422
Wallace v Kam [2013] HCA 19; (2013) 87 ALJR 648
Category:Principal judgment
Parties: Dean Lucantonio - Appellant
Otto Stichter - Respondent
Representation: Counsel:
G Laughton SC - Appellant
G Curtin SC - Respondent
Solicitors:
Gells Lawyers - Appellant
DLA Piper Australia - Respondent
File Number(s):CA 2004/176817
Publication restriction:No
 Decision under appeal 
Citation:
Lucantonio v Kleinert [2011] NSWSC 753
Date of Decision:
2011-07-20 00:00:00
Before:
Brereton J
File Number(s):
SC 2004/176817

Judgment

  1. McCOLL JA: In 2001 Mr Dean Lucantonio, the appellant, and his wife Paulette Lucantonio, as trustees of the Lucantonio Family Trust, entered into a contract to purchase a commercial property at [XX] Majors Bay Road, Concord (the "property") from Lucia Ciofuli (the "vendor"). The purchase price was $2,200,000. They paid a deposit of $220,000 on exchange. The appellant wished to redevelop…

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Lucantonio v Stichter [2014] NSWCA 5
Case
[2014] NSWCA 5
Decision Date

CaseChat Overview and Summary

In *Lucantonio v Stichter*, the appellant, Mr Lucantonio, appealed a decision of the primary judge concerning a claim of professional negligence against the respondent, his solicitor. Mr Lucantonio had retained the respondent to act on his behalf in the purchase of a commercial property. Following the exchange of contracts and payment of a deposit, Mr Lucantonio was advised that the proposed redevelopment of the property faced significant obstacles, including the need for further council approval and increased building costs. He subsequently attempted to postpone settlement or negotiate a reduced price or compensation with the vendor, but these efforts were unsuccessful. After the vendor served a notice to complete, Mr Lucantonio failed to complete the contract, leading to its termination by the vendor.

The central legal issues before the Court of Appeal were whether the respondent's admitted negligence in failing to provide timely advice to Mr Lucantonio following the service of the notice to complete caused Mr Lucantonio's loss, and whether Mr Lucantonio would have completed the contract even if he had received that timely advice. The respondent's negligence lay in failing to advise Mr Lucantonio that completion of the contract was the "safest option" in response to the notice to complete.

The Court of Appeal reasoned that the primary judge had correctly found that the respondent's negligence did not cause Mr Lucantonio's loss. This conclusion was based on the finding that, even if the respondent had provided timely advice that completion was the safest option, Mr Lucantonio would not have completed the contract. The court determined that Mr Lucantonio's decision not to complete was driven by his assessment of the redevelopment risks and costs, and that the solicitor's advice, even if timely, would not have altered his fundamental decision. The appeal was therefore dismissed.

The Court of Appeal ordered that the appeal be dismissed with costs, and that the cross-appeal also be dismissed.

Orders

Orders of the court

(1) Appeal dismissed with costs.

(2) Cross-appeal dismissed.

[Note: The Uniform Civil Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise orders, a judgment or order is taken to be entered when it is recorded in the Court's computerised court record system. Setting aside and variation of judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18. Parties should in particular note the time limit of fourteen days in Rule 36.16.]

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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