Osei v P K Simpson Pty Ltd

The applicant, Osei, brought proceedings against the respondent, P K Simpson Pty Ltd, alleging professional negligence in the advice provided regarding a workers' compensation claim. The dispute concerned whether the applicant's claim for damages for professional negligence was a claim "for personal injury damages" as defined by the Legal Profession Uniform Law Application Act 2014 (NSW), which would impact the costs recoverable. The matter came before the Court of Appeal of New South Wales.

The primary legal issue before the Court of Appeal was whether the applicant's claim for damages arising from negligent advice concerning a workers' compensation claim constituted "personal injury damages" for the purposes of clause 2 of Schedule 1 of the Legal Profession Uniform Law Application Act 2014 (NSW). This determination was crucial for assessing the extent to which the respondent's costs could be capped. A secondary issue concerned the interpretation of "personal injury damages" under section 11 of the Civil Liability Act 2002 (NSW).

The Court of Appeal considered the nature of the applicant's claim, which was for economic loss flowing from negligent advice. It reasoned that while the underlying workers' compensation claim involved personal injury, the claim against the solicitor was for professional negligence, a distinct cause of action. The court concluded that the claim for damages for professional negligence was not a claim "for personal injury damages" as contemplated by the relevant legislation, and therefore the costs cap did not apply.

The Court of Appeal granted the applicant leave to appeal on a specific ground relating to the costs order. The appeal against the District Court's order was allowed, and the District Court's order was varied by removing the $10,000 costs cap. The respondents were ordered to pay the appellant's costs of the application for leave to appeal and the appeal itself.