Samartis v Marsdens Law Group

Samartis (the plaintiff) brought proceedings against Marsdens Law Group (the defendant) in the Supreme Court of New South Wales. The dispute concerned the defendant's alleged negligence in advising the plaintiff regarding a property transaction. Specifically, the plaintiff claimed that the defendant failed to adequately advise on the implications of a restrictive covenant affecting the property, leading to financial loss.

The central legal issue before the court was whether the defendant had breached its duty of care to the plaintiff. This involved determining the scope of the legal advice that a solicitor owes to a client in the context of a property purchase, particularly concerning the identification and explanation of encumbrances on title. The court was required to assess whether the defendant's actions or omissions fell below the standard of care expected of a reasonably competent solicitor in such circumstances.

Street J found that the defendant had indeed breached its duty of care. The court reasoned that a solicitor's duty extends to not only identifying restrictive covenants but also to explaining their practical implications and potential consequences for the client's intended use of the property. The defendant's failure to adequately communicate the impact of the covenant, which significantly restricted the plaintiff's development plans, constituted negligence. The legal principle applied was that a solicitor must provide advice that is both accurate and comprehensible to the client, enabling them to make informed decisions. The court ordered that the defendant pay damages to the plaintiff, the quantum of which was to be assessed.