Tapp v Gray[2011] NSWSC 44

The two joint venturers had an action against a third. However their solicitor failed to advise them about it and the claim became statute-barred. The joint venturers sued the solicitor for negligence and breach of contract.

The court found the solicitor negligent in failing to exercise reasonable care and skill by:

  1. failing lodge a caveat with respect to property purchased; and
  2. failing to advise the joint venturers of their rights to take action for breach of the joint venture agreement and did not do so before they became statute barred.

The court held the appropriate measure of damages was for lost opportunity. In calculating these the court had to determine what the likely damages that would have been in the proceedings had they been run within time. This was what the two wronged joint venturers were entitled to recover from the third joint venturer.

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