Scarcella v Lettice

The Supreme Court of New South Wales considered a claim of professional negligence brought by the respondents, Mr. and Mrs. Lettice, against the appellant, Mr. Scarcella, a solicitor. The Lettices alleged that Mr. Scarcella was negligent in his handling of their purchase of a property, specifically by failing to discover a defect in the title. They contended that they relied on Mr. Scarcella's advice and that this reliance led to their loss.

The central legal issues before the Court were whether Mr. Scarcella's conduct amounted to professional negligence and, crucially, when the cause of action for negligence was complete for the purposes of the Limitation Act 1969 (NSW). The respondents argued that the cause of action accrued upon their discovery of the loss, while the appellant contended it accrued at the time of the purchase, when the damage was suffered, even if not yet discovered.

The Court determined that the defect in title would have been revealed by normal conveyancing procedures, which Mr. Scarcella was engaged to perform. Applying established principles of tortious negligence, the Court held that the cause of action was complete when the damage was suffered, which in this instance was at the time of the completion of the purchase, not when the respondents later discovered the loss. Therefore, the respondents' claim was out of time under the Limitation Act 1969 (NSW).

The Court allowed the appeal with costs and made consequential orders.