Maytom v Warren McKeon Dickson Solicitors Pty Ltd

In the District Court of New South Wales, the applicant, Maytom, brought proceedings against the respondent, Warren McKeon Dickson Solicitors Pty Ltd, alleging professional negligence. The dispute arose from the respondent's conduct in acting for the applicant in a previous litigation matter.

The primary legal issue before the court was whether the respondent had breached its duty of care to the applicant by failing to advise the applicant of the potential for a costs order against them in the previous litigation, and whether this failure caused the applicant loss. The court was required to determine the scope of the solicitor's duty to inform their client about potential adverse costs consequences.

Judge Altobelli found that a solicitor's duty of care extends to advising a client on the foreseeable risks of litigation, including the risk of an adverse costs order. The court held that the respondent had failed to adequately discharge this duty by not clearly explaining the potential for the applicant to be ordered to pay the other side's costs. This failure was found to be a breach of the respondent's professional obligations. The court concluded that the applicant had suffered loss as a result of this breach, as they were subsequently ordered to pay a significant sum in costs.

The court ordered that the respondent pay damages to the applicant in an amount to be assessed.