O'Loughlin v Mount & Mount No. Scgrg-96-2417 Judgment No. S6672

The case of O'Loughlin v Mount & Mount concerns an appeal and cross-appeal from a decision of the District Court. The appeal was brought by the appellants, O'Loughlin, Mount & Co., a firm of solicitors, against a judgment entered in favour of the respondents, Mr. and Mrs. Mount, for $58,420.90 plus interest. The respondents cross-appealed against the dismissal of their claim for damages for professional negligence. The central issue in the appeal was whether a transfer of leases and water licences executed by the respondents to the appellants was a security for costs or an absolute transfer. The cross-appeal centred on whether the appellants were in breach of their duty to the respondents in failing to effect a transfer of any part of the entitlement under the water licence. The Full Court allowed the appeal and dismissed the cross-appeal, setting aside the judgment entered for the respondents and ordering that the respondents' action stand dismissed and judgment be entered for the appellants. The Court held that the transfer of leases was an absolute conveyance and not merely a security for costs. The Court also found that the respondents were not entitled to damages for professional negligence as there was no breach of duty by the appellants.