Mitchell Morgan Nominees Pty Ltd v Vella (No 2)

In *Mitchell Morgan Nominees Pty Ltd v Vella (No 2)*, the New South Wales Court of Appeal considered an appeal by Mitchell Morgan Nominees Pty Ltd against Hunt & Hunt, a firm of solicitors, concerning damages awarded for professional negligence. The dispute arose from a forged mortgage transaction where Mitchell Morgan suffered financial loss.

The primary legal issue before the Court of Appeal was the appropriate date for the quantification of damages, specifically the interest component, in a claim for professional negligence against solicitors. This involved determining the scope of liability under section 5D of the *Civil Liability Act 2002* (NSW) for the loss of interest suffered by the plaintiff.

The Court of Appeal allowed Mitchell Morgan's appeal, finding that the trial judge had erred in the assessment of damages. The Court reasoned that the loss of interest should be calculated from the date the funds were advanced by Mitchell Morgan, as this was the point at which the negligence of Hunt & Hunt caused the financial detriment. The Court applied principles of causation and remoteness in assessing the damages, concluding that the loss of interest was a foreseeable consequence of the solicitors' negligence. Consequently, the Court set aside the previous orders and entered judgment for Mitchell Morgan against Hunt & Hunt for the sum of $2,370,601.54, along with orders for costs.