Cavenham Pty Ltd v Robert Bax & Associates [2011] QSC 348

In this case a solicitor acting for a commercially naive lender was found to be negligent because he made no enquiry, as to the level of the lender’s financial or business acumen, he made no attempt to ensure the lender understood how insane it was to rely on the borrower to register the mortgage, did not counsel the lender to consider calling up the loan when repayment was not made; made no attempt to ascertain the value of the properties against which security was offered (or to view the purchase contracts); did not explore the availability of other assets which could have been provided as security; and failed overall to explain the risks involved in the transactions.

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