On 3 April 2013 the High Court delivered its much anticipated
decision in the matter of Hunt & Hunt Lawyers v Mitchell
Morgan Nominees Pty Ltd [2013] HCA 10.
By a majority of 3-2, the High Court overturned the New South
Wales Court of Appeal decision and held that proportionate
liability provisions of Part 4 of the Civil Liability Act
2002 (NSW) operated to substantially reduce the liability of a
negligent solicitor for the loss suffered by a lender on a loan
procured by fraud.
Background
Hunt & Hunt Lawyers (Hunt &
Hunt) were the lawyers for Mitchell Morgan Nominees
Pty Limited (Mitchell Morgan), a company
engaged in the business of providing finance. Mitchell Morgan
suffered loss as a result of a $1 million loan it provided to two
individuals, Mr Cardonna and Mr Vella. It was revealed in the trial
that Mr Caradonna had forged Mr Vella's signature on the loan
documents and absconded with the funds. The funds were never
recovered and Mr Caradonna became
