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Professional negligenceLawyers

Negligence by your Lawyer or Solicitor?

A lawyer must act with the care and skill of a competent practitioner. You may be able to claim if their lack of care caused you a loss, such as a missed time limit, careless advice or a deal that failed because of their mistake. How a case was run in court is generally protected, but advice to settle isn’t. (Attwells v Jackson Lalic Lawyers Pty Ltd [2016] HCA 16)

  • No-obligation first consultation
  • We set out our costs in writing at the start.

When several parties are involved

Why everyone should be identified early.

Where the sharing rule applies, the law expects you to claim against everyone you have reasonable grounds to believe may be responsible. (Civil Liability Act 2003 (Qld) s 32)

What has to be shown

Losing money isn’t enough on its own.

A negligence claim needs all four of these. Other claims, like misleading conduct, have their own tests.

  1. A duty to you

    Usually owed by the professional you engaged, in contract and in negligence.

  2. Care below the standard

    Less care than a reasonable professional in their position would have taken. (Civil Liability Act 2003 (Qld) s 9) In some cases, following a practice widely accepted by respected peers can be a defence, and the professional must prove it. (s 22) That defence doesn’t apply to claims about giving, or failing to give, a warning, advice or information about a risk of harm, and harm includes financial loss. (s 22(5))

  3. It caused your loss

    You must show what proper advice or work would have led to, and that you’re worse off because of the breach. (Civil Liability Act 2003 (Qld) ss 11, 12)

  4. A loss you can measure

    The difference between where you are and where you’d otherwise be.

Where a claim can go

Which routes each profession has.

Some routes are free. Most can pay only limited amounts, or only for certain losses.

Route Financial adviser Insurance broker Accountant Lawyer Conveyancing Real estate agent Architect or engineer
A court claim Damages for the loss the breach caused. A professional standards scheme can cap some professionals’ liability. Time limit: 6 years
Financial adviser
Insurance broker
Accountant
Lawyer
Conveyancing
Real estate agent
Architect or engineer
AFCA A free, independent complaints service, mainly for individuals and small businesses. Its awards are capped, and you usually complain to the firm first. Time limit: 6 years from awareness, and 2 years from any final response from the firm
Financial adviser
Insurance broker
Legal Services Commission Some professions have complaint or disciplinary schemes that can order limited compensation. Whether one applies depends on the profession, the type of loss and the body involved. We can tell you which options fit your situation. Time limit: Generally 3 years after the conduct. Older complaints are accepted only in limited cases.
Lawyer
Conveyancing
Fidelity fund Dishonest failure to pay or hand over trust money or property. Not negligence. Time limit: Notify within 6 months of becoming aware
Lawyer
Conveyancing
Agents’ claim fund Trust money, false or misleading claims and undisclosed interests. Not negligence or poor service. Time limit: Within 1 year of becoming aware of the loss, and no more than 3 years after the event
Real estate agent

A professional who also holds an Australian financial services licence, like some accountants, may be an AFCA member for the financial advice they give.

Time limits

The clock can start before you know.

Finding out late doesn’t usually give you more time for financial loss.

  1. 6 years

    Court action

    Generally within 6 years of when the cause of action arose. (Limitation of Actions Act 1974 (Qld) s 10)

  2. From the loss

    When the clock starts

    For negligence, when you first actually suffer a loss. For contract, when the contract was breached, which can be earlier.

  3. No extension

    Not knowing isn’t enough

    Queensland’s extension for facts learned late applies to injury claims, not to financial loss. (Limitation of Actions Act 1974 (Qld) s 31)

  4. Later

    A loss that comes later

    If a lawyer’s mistake only causes a loss later, like a badly drafted agreement, the clock for negligence may not start until that loss actually happens. (R Lawyers v Mr Daily [2025] HCA 41)

Fraud, or a claim hidden by fraud, can delay the start of the clock until you discover it, or could reasonably have discovered it. (Limitation of Actions Act 1974 (Qld) s 38)

How it goes wrong

How legal work goes wrong.

A poor result isn’t enough on its own. The question is whether the lawyer took the care a competent lawyer would have, and whether proper work would have avoided the loss.

  • A missed time limit

    A claim that ran out of time, or a notice or option that wasn’t given by its deadline.

  • Documents that didn’t work

    A contract, will, lease or agreement drafted so that it didn’t do what you needed.

  • Advice that was wrong

    Advice about your rights, risks or options that a competent lawyer wouldn’t have given.

  • Advice to settle

    Advice that led you to accept, or turn down, a settlement. This isn’t protected the way court work is.

  • A deal gone wrong

    A purchase, sale or business deal that failed or cost you because of the lawyer’s mistake.

Who may be responsible

Who answers for a lawyer’s mistake.

More than one party may be responsible. Each should be identified early.

  • Your lawyer

    The work itself: the advice, the documents, and whether deadlines were met.

    Ask for: Your file, letters of advice and the costs agreement

  • Their law practice

    The practice is generally responsible for its lawyers’ work. Every Queensland law practice must hold professional indemnity insurance.

    Ask for: The practice’s name, from its letters and bills

  • Others involved

    A barrister, a valuer or another adviser may also share responsibility.

    Ask for: Briefs, opinions and valuation reports

Who pays

More than one party may be responsible.

  • Every party who contributed

    Where several parties caused a financial loss or damage to property, each may only have to pay its own share. (Civil Liability Act 2003 (Qld) s 31)

  • Unless you’re a consumer

    That sharing rule doesn’t apply to an individual’s claim about services for personal, domestic or household use, or about a professional’s advice for their own use rather than a business. (Civil Liability Act 2003 (Qld) ss 28, 29) Some claims under Commonwealth laws, such as some misleading conduct claims, may not have this exception.

  • Their insurer

    Professionals usually carry indemnity insurance, which may pay a successful claim.

  • Any liability cap

    Look for “Liability limited by a scheme approved under Professional Standards Legislation” on their letters. A cap only matters if your loss is above it.

Straight away

Four things to do now.

  1. Now 1

    Ask for your file

    Ask the practice in writing for a copy of your file. Keep letters, emails and bills.

  2. Now 2

    Write down the timeline

    When you instructed them, what they advised, and when the loss happened.

  3. Now 3

    Check the original matter

    If the original matter is still running, its own time limits may still matter. Get advice quickly.

  4. Now 4

    Don’t sign a release yet

    Don’t accept an offer, or sign anything that releases the lawyer, until you’ve had advice about it.

What you can claim

What you can claim.

  • The money you lostThe difference between your position and where proper advice or work would have left you.
  • Costs to put it rightReasonable costs of fixing the problem, like rectification work or new advice.
  • Tax, interest and penaltiesWhere they flow from the error, such as interest or penalties caused by a tax agent’s mistake.
  • Wasted legal costsLegal costs wasted because of the professional’s error.
  • Lost opportunitiesThe value of a real chance you lost, such as a better deal or a claim, if it can be proved.

Damages aim to put you where you’d have been without the error. They’re not a penalty, and distress is generally not compensated.

How a claim runs

From the first call to court, if it’s needed.

  1. No-obligation first consultation

    We look at what happened, who may be responsible, and when your time limit runs out.

  2. Documents and review

    We gather the file and, where needed, brief an independent expert from the same profession.

  3. Letter of claim

    A detailed claim to the professional and their insurer, setting out the breach and the loss.

  4. Negotiation or AFCA

    Claims can be negotiated or mediated. Financial advice and broking complaints can go to AFCA instead.

  5. Court, if needed

    If it doesn’t settle, proceedings are started before the time limit ends. Talks can continue.

Costs

What it costs you.

We don’t take these claims on a no-win, no-fee* basis. Before we start, a costs agreement sets out our fees, an estimate of your total legal costs, and the outlays you’re likely to pay, such as report and court fees. We tell you if that estimate changes significantly. If a court case is lost or withdrawn, or you don’t do better than an offer the other side made, you may have to pay the other side’s legal costs.

  • No-obligation first consultation

    You decide whether to go ahead once you know your options and the likely costs.

  • Everything in writing

    Fees and outlays are set out in a costs agreement before we start.

  • An estimate first

    An estimate, or a range, of your total legal costs before we start.

Questions

Questions people ask.

Generally 6 years. For negligence, time runs from when you first suffer the loss, which can be later than the mistake. For a contract claim, it runs from the breach. (Limitation of Actions Act 1974 (Qld) s 10) Finding out late doesn’t usually give you more time, so don’t wait.

Lost out because of a lawyer’s mistake?

Your first consultation covers who may be responsible and the time limit that applies. There’s no obligation to go ahead.

Our fees and outlays are set out in a costs agreement before we start. If a court case is lost or withdrawn, or you don’t do better than an offer the other side made, you may have to pay the other side’s legal costs. This page is general information, not legal advice about your situation.