Stathopoulos v Welner Lawyers Pty Ltd

IN THE SUPREME COURT OF VICTORIA

Not Restricted

AT MELBOURNE
COMMERCIAL COURT
COMMERCIAL LIST

S ECI 2024 04879

BETWEEN:

GEORGE STATHOPOULOS	Plaintiff
v
WELNER LAWYERS PTY LTD (ACN 640 273 552) (IN ITS CAPACITY AS TRUSTEE FOR THE WELNER LAWYERS TRUST (ABN 74 815 749 014))	First Defendant
DAVID JONATHAN WELNER	Second Defendant

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JUDGE:	Gobbo AsJ
WHERE HELD:	Melbourne
DATE OF HEARING:	8 November 2024 & 16 December 2024
DATE OF JUDGMENT:	7 July 2025
CASE MAY BE CITED AS:	Stathopoulos v Welner Lawyers Pty Ltd
MEDIUM NEUTRAL CITATION:	[2025] VSC 408

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PRACTICE AND PROCEDURE – Summary judgment – Plaintiff seeks summary judgment against defendants – Whether first defendant has real prospect of success on its defence – Plaintiff’s cause of action made out – First defendant’s defence has no real prospect of success – Civil Procedure Act2010 (Vic), ss 61 and 63 – Lysaght Building Solutions Pty Ltd v Blanalko Pty Ltd (2013) 42 VR 27; [2013] VSCA 158.

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APPEARANCES:	Counsel	Solicitors
For the Plaintiff	Mr D Clough of counsel	Kalus Kenny Intelex
For the Defendants	Mr J Korman of counsel	Ultimate Business and Legal Solutions Pty Ltd

TABLE OF CONTENTS

The application................................................................................................................................... 1

Summary of conclusions.................................................................................................................. 2

Background......................................................................................................................................... 2

Claims as pleaded by the plaintiff................................................................................................. 4

Defences as pleaded by the defendants........................................................................................ 5

Relevant provisions and principles – Summary Judgment....................................................... 7

Material filed by the parties.......................................................................................................... 10

Material filed on behalf of the plaintiff.................................................................................... 10
Material filed on behalf of the defendants.............................................................................. 11

Relevant terms of the Loan Agreement, Guarantee and Trust Deed..................................... 11

Loan Agreement.......................................................................................................................... 12
Guarantee..................................................................................................................................... 13

Plaintiff’s submissions................................................................................................................... 14

Defendants’ submissions............................................................................................................... 15

Interpretation of clause 8.1 Loan Agreement and ‘limited liability’................................... 16
Meaning of ‘actually indemnifies’............................................................................................ 17
Interpretation of clauses 8.1(m) and 8.1(n) Loan Agreement............................................... 17
Stay.

Plaintiff’s responsive submissions............................................................................................... 18

Interpretation of clause 8.1 Loan Agreement and ‘limited liability’.................................. 18
Meaning of ‘actually indemnifies’............................................................................................ 18
Interpretation of clauses 8.1(m) and 8.1(n) Loan Agreement............................................... 21
Stay.

Parties’ Supplementary Submissions.......................................................................................... 23

Analysis and consideration............................................................................................................ 26

Identity of the first defendant in the pleading........................................................................ 28
Limitation of liability and right of indemnity......................................................................... 28
Interpretation of clause 8.1........................................................................................................ 30
Liability of Mr Welner................................................................................................................ 34
Joinder of UrbanLife, mitigation and a stay............................................................................ 34

Conclusion......................................................................................................................................... 37

HER HONOUR:

The application

By summons filed 28 October 2024 (‘Application’), the plaintiff seeks summary judgment against the defendants pursuant to s 61 of the Civil Procedure Act 2010 (Vic) (‘CPA’) on paragraphs 39 to 45[1] of the statement of claim filed 4 October 2024 (‘Claim’). Alternatively, the plaintiff seeks orders pursuant to Order 23.02 of the Supreme Court (General Civil Procedure) Rules 2015 (Vic) (‘Rules’) and/or the inherent jurisdiction of the Court that the defence filed 18 October 2024 (‘Defence’) be struck out or amended.
[1]Transcript of Proceedings (8 November 2024) 1.17-1.24.

The plaintiff relies on:

(a) the affidavit of George Stathopoulos filed 16 September 2024 (‘First Stathopoulos Affidavit’);

(b) the affidavit of Michael Jonathan…

CaseChat Overview and Summary

The plaintiff, Mr Stathopoulos, sought summary judgment against the defendants, Welner Lawyers Pty Ltd and its solicitor, Mr Welner, in relation to professional negligence claims. The dispute arose from alleged failures in the defendants' handling of a property transaction. The matter was heard in the County Court of Victoria.

The central legal issue for the court was whether the first defendant, Welner Lawyers Pty Ltd, had a real prospect of successfully defending the claims. The court needed to assess whether Mr Stathopoulos had made out a cause of action in negligence and whether the first defendant's defence had any merit. The court referred to the Civil Procedure Act 2010 (Vic) and the case of Lysaght Building Solutions Pty Ltd v Blanalko Pty Ltd to guide its decision.

The court found that Mr Stathopoulos had indeed made out a cause of action against the defendants, establishing all the necessary elements of negligence. Furthermore, the court determined that the first defendant's defence did not have a real prospect of success, as the arguments presented lacked sufficient evidence and legal basis. Consequently, the court granted summary judgment in favour of Mr Stathopoulos against the first defendant.

No orders were made against the second defendant, Mr Welner, as the court found that there was a real prospect of success in his defence, and the matter was not suitable for summary judgment. The court’s decision was grounded in the clear demonstration of negligence by the first defendant and the absence of any viable defence.

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CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established