Business law Hunt & Hunt v Mitchell Morgans

Question: Discuss about the Business law Hunt Hunt v Mitchell Morgans. Answer: Breach of duty As per the facts of the case, Hunt Hunt was held to be co-wrongdoer along with Mr. Caradonna and Mr. Flammia, together named as the Fraudsters who committed infringement of their duties towards the Mitchell Morgans. The liability of the fraudsters was apportioned as Mr. Cardonna was liable for 72.5%, Mr. Flammia was liable for 15.0% and Hunt Hunt was liable to the extent of 12.5%. However, Hunt Hunt took the defense of the rule of proportionate liability. Proportionate liability as laid down under the Civil Liability Act, 2002 is a liability that may be either joint or several but each offender shall be treated as the essential cause and shall bore the entire loss caused (Munro 2015). Section 1041 N of the Corporations Act 2001, lays down the statutory provisions for proportionate liability for apportionable claims. According to the Act, where the liability of the defendant being a concurrent wrongdoer in connection to the claim is restricted to that amount which is proportionate to the extent off loss or damage claimed as a result of the defendants responsibility for such loss or damage caused. The Hunt Hunt was held liable as it failed to carry out its duty of care towards the Mitchell Morgans. The Hunt Hunt was negligent while preparing the mortgage agreement as it did not prepare the agreement containing a promise to pay back a confirmed amount. The Critical evaluation of the courts decision The damage caused by Mr. Caradonna and his solicitor included the advancement of loan funds by Mitchell Morgans and the harm caused by the Hunt Hunt was that it acted negligently as the Mitchell Morgan did not possess the security benefit to pay the money advanced (Woodhouse and Rendle 2015). For determining the extent of loss suffered, the extent of interest violated must be recognized to establish what omission or act has caused the damages suffered. References Munro, A., 2015. Identifying concurrent wrongdoers: The proportionate liability regime in practice.LSJ: Law Society of NSW Journal,2(2), p.76. Woodhouse, B. and Rendle, C., 2015. High Court limits scope of proportionate liability claims.Governance Directions,67(6), p.368.