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In order to process the loan, Hill's solicitors, Haddow & Co certified to Allied
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Haddow issued this certificate despite the fact that Roger was not purchasing the yacht himself, but by his company Equity
Dealers Ltd instead, which resulted in Allied having arguably a legally unenforceable security over the yacht.
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Ultimately, Hill used the $ 25,000 for other purposes than pay for the yacht, resulting in the seller, Mr
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ruled that a lawyer owed a duty of care to the holder of a security for a loan to his client, in preparing a certificate attesting to his client's liability.
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The court of Appeal ruled that Haddow owed a duty of care to Allied, and thus were liable to reimburse them for their loss.
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NZLR 22 is a cited case in New
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With Hill now bankrupt, Allied sued his solicitors for the shortfall.
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