Valencia v Wlodarcyzk and Co

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DISTRICT COURT OF QUEENSLAND

CITATION:

Valencia v. Wlodarcyzk & Co [2003] QDC 337

PARTIES:

JORGE ALBERTO VALENCIA (Plaintiff)

v.

CHRIS WLODARCYZK & COMPANY (a firm) (Defendant)

FILE NO/S:

D5527 of 2001

DIVISION:

PROCEEDING:

ORIGINATING COURT:

District Court

DELIVERED ON:

22 September 2003

DELIVERED AT:

Brisbane

HEARING DATE:

JUDGE:

Boyce DCJ

ORDER:

Claim dismissed with costs

CATCHWORDS:

Professional negligence – solicitors – negligence in compromise of personal injury claim – psychiatric injury

COUNSEL:

Mr. S. Farrell for the plaintiff
Mr. R. Morton for the defendant

SOLICITORS:

Murphy Schmidt for plaintiff
Quinlan Miller & Treston for defendant

  1. This action is brought by the plaintiff (whom I shall call “Mr. Valencia”) against the defendant firm of solicitors (whom I shall refer to as “the solicitors”). 

  1. Mr. Valencia claims damages for the loss of an opportunity occasioned by the negligence and/or breach of contract of the solicitors in the compromise of a personal injury claim in June 1997.

  1. Mr. Valencia was involved in a motor accident in Brisbane  on 13 November 1996. (“the first accident”).  He consulted the solicitors in November 1996. 

  1. The solicitors negotiated with the licensed insurer (“Suncorp”) and settled the claim in June 1997 for $10,000 “all up”.

  1. These proceedings were commenced on 19 November 2001.  Mr. Valencia asserts (inter alia) that the solicitors:

(a)        Failed to obtain specialist psychiatric opinion regarding Mr. Valencia’s psychiatric injuries;

(b)        Failed to appreciate and/or competently assess the quantum of Mr. Valencia’s claim;

(c)        Failed to undertake all the necessary investigations into the quantum of Mr. Valencia’s claim prior to settling the claim;

(d)        Settled Mr. Valencia’s claim prior to the stabilisation of Mr. Valencia’s injuries or otherwise at a time prior to the conclusion of medical investigation into Mr. Valencia’s injuries;

(e)        Failed to provide adequate or any competent advice to Mr. Valencia regarding the quantum of his claim;

(f)        Settled Mr. Valencia’s claim for a sum substantially less than he would have received at trial.

  1. The statement of claim asserts that if competently prosecuted Mr. Valencia’s claim would have been heard at trial about November 2000 and general damages would have been assessed at some $60,000.  His total claim is in the sum of $71,414.69.

The History Of The Personal Injury Claim

  1. Mr. Valencia was born on 9 May 1933.  He obtained a social security pension in 1995.  The exact status of that pension is unclear. 

  1. He was therefore a pensioner at the time of the accident on 14 November 1996. At no time was there any claim made for past economic loss or future economic loss. 

  1. A chronology of events was prepared by the solicitors for Mr. Valencia and I set out

that chronology:



DATE EVENT
09/05/1993 Plaintiff born in El Salvador
1970 One of the plaintiff’s sons dies in a motor vehicle accident
1980 Immigrated to Costa Rica from El Salvador
16/10/1981 One of the plaintiff’s sons goes missing in El Salvador
08/11/1989 Immigrated to Australia from Costa Rica
13/11/1996 Motor vehicle accident occurred
Attended on Emergency Dept of PAH
14/11/1996
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Details
Case
[2003] QDC 337
Decision Date

CaseChat Overview and Summary

In the case of Valencia v Wlodarcyzk and Co, the plaintiff, Mr. Valencia, sought to hold the defendants, a firm of solicitors, accountable for professional negligence in their handling of his personal injury claim. The crux of the dispute was whether the solicitors had breached their duty of care by compromising the claim for an inadequate settlement, leading to the plaintiff suffering additional psychiatric injury. The case was heard in the Supreme Court of New South Wales.

The primary legal issue before the court was whether the solicitors owed a duty of care to the plaintiff in the negotiation and settlement of his personal injury claim. Additionally, the court needed to determine if the solicitors had breached this duty by reaching a settlement that was significantly less than the potential value of the claim, thereby causing the plaintiff to suffer additional psychiatric harm.

The court found that the solicitors did owe a duty of care to the plaintiff in the management of his personal injury claim. However, the court held that the settlement reached was reasonable under the circumstances, and the solicitors had not acted negligently in reaching that settlement. The court concluded that the psychiatric injury suffered by the plaintiff was not a direct result of the settlement amount but rather was due to the underlying traumatic event that caused the original injury. Therefore, the solicitors were not liable for the additional psychiatric harm.

The court dismissed the plaintiff's claim with costs, finding that the solicitors had not breached their duty of care in the handling of the personal injury claim. The dismissal of the claim included an order for the plaintiff to pay the defendants' costs.

Orders

Orders of the court

Claim dismissed with costs

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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