Montague Mining Pty Ltd v Gore

Montague Mining Pty Ltd instituted proceedings against the firm of Clayton Utz and its partners, Spinifex Gold NL and others, alleging negligence and breach of contract in relation to the documentation of an agreement with owners of Philippines mining tenements. The court found the partners of Clayton Utz liable for negligence and breach of contract, holding that they failed to appreciate the significance of Montague's inability to perform its obligations under the proposed memorandum of agreement (MOA) and the proposed agreement with Spinifex, and to give advice in relation thereto. The court found that the MOA was a legally binding agreement creating an interest capable of assignment, and that the partners of Clayton Utz failed to include an assignment clause in the MOA, or at least warn Montague against executing a document that lacked such a clause. The court held that the partners of Clayton Utz fell well short of the standard of care fairly to be expected of a specialist solicitor advising in their field of expertise. The court found that Montague had an agreement with the Filipino parties that was enforceable against them to the limit of its terms, and that Montague had suffered a loss of commercial opportunity due to the negligence of the partners of Clayton Utz. The court directed the holding of a settlement conference before further evidence was filed, in the hope that it would contribute to the possibility of a compromise between the parties.