“Hands off” solicitor ordered to pay $1.5m

A recent Queensland Supreme Court decision highlights the danger of not appreciating the full scope of your retainer, and of receiving instructions through a third party without a face to face interview with the client.

The retainer related to various loan transactions. The solicitor argued that it was a “limited, rather clerical type retainer”. The Chief Justice found to the contrary, that the solicitor was obliged to act generally in the client’s interests, including advising about the need for legal protection against contingencies that may arise, so that the client had an adequate understanding, and to proactively give advice, even if not sought by the client.

Although not a disciplinary case, this judgment serves as a reminder, if one is needed, of a solicitor’s duty to act with competence and diligence – see Solicitors Rules 1 and 2.