Melville v Craig Nowlan & Associates

Melville v Craig Nowlan & Associates concerned a dispute between the plaintiff, Melville, and the defendant, Craig Nowlan & Associates, a firm of solicitors. The case came before the High Court of Australia.

The central legal issue before the High Court was whether the solicitors had breached their duty of care to their client, Melville, in their conduct of litigation. Specifically, the court had to determine if the solicitors were negligent in failing to advise Melville of the full implications of a settlement offer and in subsequently failing to obtain Melville's informed consent to the settlement.

The High Court considered the principles governing a solicitor's duty to their client, particularly in relation to settlement negotiations. The court affirmed that solicitors owe a duty to exercise reasonable care and skill in advising their clients, and this includes ensuring that clients understand the nature and consequences of proposed actions, such as accepting a settlement offer. The court found that the solicitors had failed to adequately inform Melville of the potential risks and benefits associated with the settlement, thereby breaching their duty of care. The reasoning focused on the solicitor's obligation to obtain informed consent, which requires more than merely conveying an offer; it necessitates a thorough explanation of its implications.

The High Court allowed Melville's appeal, finding that the solicitors had been negligent and ordering that damages be assessed.