The plaintiffs commenced an action alleging professional negligence by their real estate lawyer arising from a failed land development transaction.
After being warned by a previous lawyer about the risks of the deal, the plaintiffs proceeded with a closing handled by the defendant solicitor and later suffered financial losses when the purchaser defaulted and the property was lost through power of sale.
The plaintiffs argued the solicitor failed to meet the required standard of care in structuring the transfer and protecting their interest under a joint venture arrangement.
The court held that expert evidence was required to establish the applicable standard of care in the context of a complex real estate transaction.
In the absence of such evidence, and given that the solicitor followed the client’s instructions and cautioned the client about the risks, negligence was not proven.