Rahme v Benjamin & Khoury Pty Ltd

Case

[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.
Details

Areas of Law

  • Equity & Trusts

  • Civil Procedure

  • Contract Law

Legal Concepts

  • Fiduciary Duty

  • Breach

  • Consent

  • Appeal

  • Remedies

  • Reliance

Actions
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Cases Cited

23

Statutory Material Cited

7

Chan v Zacharia [1984] HCA 36