Thompson & Anor t/as Staunton and Thompson Lawyers v Schacht (No 2)

Thompson & Anor t/as Staunton and Thompson Lawyers (the appellants) sought to reopen a judgment delivered by the Court of Appeal of New South Wales before the formal orders were entered. The dispute concerned a claim by Mr Schacht (the respondent) against the appellants, who were his former solicitors. The Court of Appeal had previously delivered judgment but had not yet entered formal orders.

The primary legal issue before the Court was whether it had the power to reopen its judgment after it had been delivered but before the formal orders were entered, specifically in circumstances where an issue raised by the appellants had not been determined by the court. The court was required to consider the discretion it possessed in such situations and whether any factors disentitled the appellants from having their application granted.

The Court of Appeal reasoned that it retained a residual discretion to correct errors or omissions in its judgments before formal orders were perfected. It found that the appellants had raised a specific issue concerning the calculation of damages which had not been addressed in the original judgment. As there were no disentitling discretionary factors, such as undue delay or prejudice to the respondent, the court determined that it was appropriate to grant the application to reopen the judgment.

The Court of Appeal gave judgment in the amount of $382,488 in favour of Mr Schacht, in lieu of the judgment entered on 21 May 2013. The respondent was ordered to pay the appellants’ costs in the Court of Appeal on the ordinary basis, including the costs of the notice of motion filed on 5 September 2014. The parties were directed to provide agreed consequential orders within 14 days, or failing agreement, to provide a document outlining further orders sought and the reasons for them within 21 days.