In Australia professionals are required to work to a certain acceptable industry standard. Because of these expectations it can be said that professionals also owe a duty of care to their clients. If they fail to exercise their professional responsibilities towards a client in a satisfactory way this may be considered a breach of their duty of care. A client who has suffered loss as a result of a breach may be entitled to bring an action for professional negligence against the person or company who provided the professional services. Some of the professionals who may be subject to professional negligence claims include:

• accountants;
• real estate agents;
• engineers;
• builders;
• doctors;
• trustees;
• architects;
• auditors;
• bankers;
• legal practitioners; and
• property evaluators.

The law requires certain criteria to be established before a claim for professional negligence can be successfully brought against a professional who has been providing you with professional services. You must prove that:

• a duty of care existed between you (the plaintiff) and the professional providing the services (the defendant);
• the defendant breached that duty of care; and
• that breach was the cause of injury or loss to the plaintiff.

All professionals in Australia are obliged to have professional indemnity insurance. If you believe that a professional handled your matter poorly and as a consequence you have incurred loss then you should contact a specialist lawyer at the earliest opportunity to discuss the legal avenues available in your circumstances. You should be aware that in Australia professional negligence claims are subject to strict time limits. This is usually between 3 and 6 years depending on the type of claim. Once the time limitation has passed it is usually not possible to purse the claim. You should act promptly in the event that you have suffered loss as a result of professional negligence. If you leave it to the last minute you may not have time to gather the evidence that a lawyer will need to advise you on whether your claim is worth pursuing.

This Legal Guide on Professional Negligence provides a general overview of the relevant law based on the position in NSW at the time of writing. Most other states and territories have similar laws. Before making important decisions it is advisable to obtain legal advice specific to your situation.

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Warning: Information provided through LegalEagle™ is for general guidance. It is not legal advice. Laws and procedures referred to may change and differ between states, territories and nationally. There may also be important exceptions or qualifications. Only a lawyer providing formal legal advice can assess your particular circumstances to determine how the law will apply.