McLennan v Meyer Vandenberg

The appeal concerned a claim by the appellants, Mr and Mrs McLennan, against their former solicitors, Meyer Vandenberg. The McLennans alleged that the solicitors were negligent in their advice regarding a contract for the sale of their property, which was affected by asbestos. A government buy-back scheme was subsequently applied to the property. The McLennans sought damages for economic loss and for disappointment and distress. The appeal was heard by Burns and Mossop JJ and Robinson AJ.

The court was required to determine whether the government buy-back scheme broke the chain of causation for the solicitors' alleged negligence, and if the scheme had fully restored the McLennans to their original position, thereby negating their claim for economic loss. Additionally, the court had to consider whether section 35 of the *Civil Law (Wrongs) Act 2002* (ACT), which deals with damages for disappointment and distress, applied to claims in contract as well as tort, and whether the appellants had established a recognised psychiatric illness. Finally, the court needed to determine the appropriate period for which interest could be awarded on any damages, specifically in light of a *Calderbank* offer made during the proceedings.

The court reasoned that the government buy-back scheme had indeed fully restored the McLennans, meaning their claim for economic loss was not established on the evidence. Regarding disappointment and distress, the court held that section 35 of the *Civil Law (Wrongs) Act 2002* (ACT) was applicable to claims in contract and tort, but that the appellants had not demonstrated a recognised psychiatric illness. The court also ruled that interest should not be awarded for the period after the *Calderbank* offer was made.

The appeal was dismissed.