Swaab v Stojanovski (No.2)

In Swaab v Stojanovski (No.2), the Supreme Court of New South Wales was asked to determine the extent of a solicitor's liability for professional negligence. The plaintiff, Mr. Swaab, alleged that the defendant solicitor, Mr. Stojanovski, had negligently advised him regarding a property transaction, leading to financial loss. The core of the dispute centred on whether the advice provided by Mr. Stojanovski fell below the standard of care expected of a reasonably competent solicitor in New South Wales.

The primary legal issue before the Court was to assess whether Mr. Stojanovski had breached his duty of care to Mr. Swaab. This involved determining the nature and scope of the advice that ought to have been given concerning the property transaction, and whether the advice actually provided was deficient. The Court was required to consider the specific circumstances of the transaction and the information available to the solicitor at the time the advice was given.

Judge Cameron found that Mr. Stojanovski had indeed breached his duty of care. The Court reasoned that a reasonably competent solicitor would have identified and advised Mr. Swaab on certain critical risks associated with the transaction that were not adequately communicated. The legal principle applied was that a solicitor owes a duty to exercise reasonable care and skill in providing advice, and failure to do so, resulting in loss to the client, constitutes professional negligence. The Court's determination of the breach was based on its assessment of the evidence presented regarding the advice given and the prevailing professional standards.