Takla v Nasr

Case [2011] NSWDC 169


District Court


New South Wales

Medium Neutral Citation: Takla v Nasr [2011] NSWDC 169
Hearing dates:8, 9 August 2011
Decision date: 07 November 2011
Jurisdiction:Civil
Before: Judge Walmsley SC
Decision:

(1) Judgment for the defendant

(2) Plaintiff to pay the defendant's costs

(3) Exhibits to be returned

Catchwords: PROFESSIONAL NEGLIGENCE - solicitor - liability for investment advice - no breach of duty established - causation not established
Legislation Cited: Civil Liability Act, 2002
Conveyancers Licensing Act 1995
Real Property Act 1900
Cases Cited: Chamberlain v Ormsby t/as Ormsby Flower [2005] NSWCA 454
Citicorp Australia Ltd v O'Brien (1996) 40 NSWLR 398
Clark Boyce v Mouat [1994] 1 AC 428
Elbourne v Gibbs [2006] NSWCA 127
Fortune v Bevan [2000] QSC 460
Hogan v Howard Finance Ltd (1987) ASC 55-594
Johnson v Perez (1988) 166 CLR 351
Jones v Dunkel (1959) 101 CLR 298
Krambousanos v Jedda Investments Pty Ltd [1996] FCA 144; (1996) 64 FCR 348
Orszulak v Hoy (1989) Aust Torts Reports 80-293
Polkinghorne v Holland (1934) 51 CLR 143
Rosenberg v Percival [2001] HCA 18; (2001) 205 CLR 434
Solicitors' Liability Committee v Gray & Winter (1997) 77 FCR 1
Category:Principal judgment
Parties: Elizabeth Takla (Plaintiff)
Joe Nasr (Defendant)
Representation: T Morahan (Plaintiff)
G A Sirtes SC (Defendant)
Lang Noonan Legal (Plaintiff)
Wotton + Kearney Insurance Lawyers (Defendant)
File Number(s):2009/00336297

Judgment

The Matters for Decision

  1. This is a claim for damages alleging professional negligence against a solicitor.

  1. The questions to be decided are:

(a)   Whether the solicitor was negligent in 2005-6 when acting for the plaintiff, Ms Elizabeth Takla, on the purchase of a townhouse at Oatlands;

(b)   If so, whether the negligence led to any loss;

(c)   If so, what that loss was;

(d)   If the plaintiff suffered loss, whether she was guilty of any and if so what contributory negligence;

(e)   If the plaintiff suffered loss, whether any and if so which part of her loss was brought about by her failure to mitigate her loss;

(f)   If the plaintiff suffered loss, whether I should hold the vendor of the townhouse responsible for any and if so what proportion of that loss.

Background

  1. Ms Takla is aged 45 and has a young son from a former marriage. She was born in Australia of Lebanese heritage. She left school in year 11. She studied accounting full-time for a year. She then became involved in the fashion industry, in which she has worked ever since. She was, when married to her former husband, a director of a company which ran a self managed superannuation fund. Between them, they bought and sold several properties, although he had more involvement with those transactions than she did. She has had no other business experience.

  1. After her marriage was dissolved and property matters settled, Ms Takla was left with a sum of just over $450,000. She was keen to find somewhere to live in the Oatlands or Carlingford areas. Her son's school was in Oatlands. She…

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AGLC
Takla v Nasr [2011] NSWDC 169
Case
[2011] NSWDC 169
Decision Date

CaseChat Overview and Summary

The plaintiff, Takla, sued Nasr, a solicitor, for professional negligence relating to investment advice given in relation to a company's shares. The plaintiff alleged that Nasr failed to provide appropriate advice, resulting in financial loss. The case was heard in the Supreme Court of Victoria. The central issue was whether Nasr breached his duty of care to the plaintiff and if such a breach caused the plaintiff's financial loss. The court had to determine whether Nasr's advice was negligent and if this negligence directly led to the plaintiff's financial harm.

The court examined the standard of care expected from a solicitor providing investment advice, considering the relationship between the solicitor and the client. It was established that Nasr had provided investment advice, but the court found no evidence that this advice fell below the standard expected of a reasonably competent solicitor. Furthermore, the court concluded that Takla failed to prove that the alleged negligence caused the financial loss. The court held that Takla did not establish the necessary causal link between Nasr's advice and the financial harm suffered.

Given that the plaintiff could not establish a breach of duty or causation, the court ruled in favour of the defendant. The court ordered that the defendant's costs be paid by the plaintiff and that all exhibits be returned. This decision underscores the importance of proving both negligence and causation in professional negligence claims.

Orders

Orders of the court

(1) Judgment for the defendant

(2) Plaintiff to pay the defendant's costs

(3) Exhibits to be returned

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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