Rahme v Benjamin & Khoury Pty Ltd
Case
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[2019] NSWCA 211
•30 August 2019
Details
AGLC
Case
Decision Date
Rahme v Benjamin & Khoury Pty Ltd [2019] NSWCA 211
[2019] NSWCA 211
30 August 2019
CaseChat Overview and Summary
The appeal concerned a claim brought by Mrs Rahme against Benjamin & Khoury Pty Ltd and Mr Dieb Khoury, a solicitor. Mrs Rahme alleged that the solicitor and his firm had breached their fiduciary duties owed to her during negotiations for and the establishment of a solicitor-client relationship. The core of the dispute revolved around whether Mrs Rahme had given fully informed consent to enter into agreements with the solicitor, and whether the advice provided was independent and meaningful.
The Court of Appeal was required to determine whether the primary judge erred in dismissing Mrs Rahme's claim against Benjamin & Khoury Pty Ltd. It also had to consider whether the primary judge correctly rejected Mrs Rahme's claim against Mr Dieb Khoury. A key legal issue was the applicability of defences under the *Civil Liability Act 2002* (NSW), specifically contributory negligence and proportionate liability, to a claim for breach of fiduciary duties. The court examined whether a claim arising "from a failure to take reasonable care" under the Act necessitates the absence of reasonable care being an element of the cause of action.
The Court of Appeal allowed the appeal in respect of the dismissal of Mrs Rahme’s claim against Benjamin & Khoury Pty Ltd, finding that the primary judge had erred in this regard. However, the appeal was dismissed concerning the rejection of Mrs Rahme’s claim against Mr Dieb Khoury. The court directed the parties to lodge draft Short Minutes of Order and, if necessary, brief written submissions regarding the orders to be made to give effect to the judgment, with specific timelines provided for each party.
The Court of Appeal was required to determine whether the primary judge erred in dismissing Mrs Rahme's claim against Benjamin & Khoury Pty Ltd. It also had to consider whether the primary judge correctly rejected Mrs Rahme's claim against Mr Dieb Khoury. A key legal issue was the applicability of defences under the *Civil Liability Act 2002* (NSW), specifically contributory negligence and proportionate liability, to a claim for breach of fiduciary duties. The court examined whether a claim arising "from a failure to take reasonable care" under the Act necessitates the absence of reasonable care being an element of the cause of action.
The Court of Appeal allowed the appeal in respect of the dismissal of Mrs Rahme’s claim against Benjamin & Khoury Pty Ltd, finding that the primary judge had erred in this regard. However, the appeal was dismissed concerning the rejection of Mrs Rahme’s claim against Mr Dieb Khoury. The court directed the parties to lodge draft Short Minutes of Order and, if necessary, brief written submissions regarding the orders to be made to give effect to the judgment, with specific timelines provided for each party.
Details
Key Legal Topics
Areas of Law
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Equity & Trusts
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Civil Procedure
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Contract Law
Legal Concepts
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Fiduciary Duty
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Breach
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Consent
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Appeal
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Remedies
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Reliance
Actions
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Most Recent Citation
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Cases Cited
23
Statutory Material Cited
7
Pilmer v Duke Group Ltd (In Liq)
[2001] HCA 31
Chan v Zacharia
[1984] HCA 36
United Dominions Corporation Ltd v Brian Pty Ltd
[1985] HCA 49