Major v Wakeling

In *Major v Wakeling*, the New South Wales Court of Appeal considered a claim of professional negligence brought by the plaintiff against her solicitor. The plaintiff alleged that the solicitor had failed to adequately advise her of the risks associated with granting a guarantee and mortgage. This transaction was connected to a separate business venture in which the solicitor himself had a personal interest.

The central legal issue before the Court of Appeal was whether the solicitor had breached his duty of care to the plaintiff by failing to provide sufficient advice regarding the potential risks inherent in the guarantee and mortgage. This involved determining the scope of the solicitor's professional obligations, particularly in circumstances where the solicitor had a personal interest in the transaction for which he was providing legal advice.

The Court of Appeal found that the solicitor had indeed breached his duty of care. It reasoned that a solicitor acting for a client in such a transaction, especially where the solicitor has a personal interest, must provide clear and comprehensive advice about the risks involved. The Court emphasised the importance of independent advice and the solicitor's obligation to ensure the client fully understood the implications of the guarantee and mortgage before proceeding. The appeal was allowed.