Professional Negligence
Experienced in disputes relating to the professional duties of a range of industries and professionals. When negligent advice, flawed valuations, or breach of duty has caused real loss, Aptum runs the case to a commercial outcome.
"Very helpful, responsive and extremely knowledgeable on all the legal matters we raised. They worked hard to get an outcome and I never felt like they were just wanting to rack up billable hours which is very refreshing."
What is professional negligence?
Professional negligence is what happens when someone you paid for expert advice or an expert service falls below the standard the law expects of their profession, and that failure causes you a loss you would not otherwise have suffered.
It's not the same as an unhappy outcome. Professionals aren't guarantors of success. A tax structure that ends up losing money doesn't mean the accountant was negligent. A share buy-out that turned out badly doesn't mean the valuer got it wrong.
Professional negligence is the narrower question of whether the professional's conduct fell below the standard of a reasonable, competent professional in that field, and whether that failure caused the loss. Both parts have to be proven. Most professional negligence claims live or die on the causation question, not on whether the professional made a mistake.
Aptum runs professional negligence matters where the loss is significant, the professional's conduct is questionable, and the causation case is real. Where any of those three isn't present, we tell clients at the value conversation.
How can Aptum help?
Aptum, its directors, and wider team have significant experience in a broad range of professional negligence claims involving financial advisers, auditors, accountants, lawyers and other professional advisors.
Through its experience, Aptum has developed a deep knowledge and understanding of the critical issues affecting the scope of a professional’s duties, the difficulties associated with establishing how negligent advice has caused loss, and a proven ability to work with experts to ensure the best possible outcomes on loss assessment and valuations.
Aptum is a market leader in facilitating funding solutions to allow claimants to prosecute, or share the risk of prosecuting, professional negligence claims.
One of Aptum’s founding values is to provide greater transparency and certainty in the legal profession. Across various industries, we are frequently engaged to investigate issues relating to fraud, breaches of duty of care, misleading advice, and negligent valuations.
Types of professional negligence Aptum runs
Aptum takes on complex professional negligence claims across every major professional discipline. The common thread is a defensible standard-of-care case, a real causation story, and a loss that justifies the commercial investment in litigation.
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01
Financial adviser negligence.
Inappropriate advice given without proper regard to the client's circumstances, failure to disclose conflicts, unsuitable product recommendations, and advice given outside the scope of the adviser's Australian Financial Services Licence. Common triggers are SMSF advice gone wrong, high-risk product recommendations to conservative investors, and margin-loan advice that ignored the client's tolerance for downside.
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02
Accountant negligence.
Negligent tax structuring, incorrect advice on capital gains or Division 7A, failure to identify tax exposure on a transaction, negligent audit or review work, and errors in the preparation of financial statements. Where the accountant's engagement letter is narrow, we work carefully through the actual scope of duty before framing the claim. See our guide on suing an accountant for bad tax advice.
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03
Auditor negligence.
Failure to detect fraud, failure to identify material misstatements, breach of professional standards (APES 110, ASA 700), and reliance-based claims by third parties who used the audit report. Auditor negligence claims turn heavily on the auditor's engagement scope and on causation, and the case has to be built with an audit expert from the outset.
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04
Legal negligence (solicitors and barristers).
Missed limitation periods, negligent drafting of contracts, wills and trust deeds, failure to advise on material risks, conflicts of interest, and negligent conduct of litigation. Legal negligence claims often involve a “case within a case” analysis, proving what the outcome would have been if the lawyer had acted competently.
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05
Valuer negligence.
Overvaluation or undervaluation of businesses, real property, or shares that caused a party to enter a transaction they wouldn't have entered at the correct valuation. Valuer negligence claims are often the pathway when a share buy-out has left one party underpaid, or a lender has taken security based on an inflated valuation. Where the valuation sits inside a company dispute, our Shareholder and Partnership Disputes service usually runs alongside.
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06
Insurance broker negligence.
Failure to arrange appropriate cover, failure to disclose material facts to the insurer, negligent advice on policy scope, and failure to notify a claim within the policy's notification window. Broker claims typically arise when an insurer has denied a claim and the insured discovers the cover was never fit for purpose. We have written on what you actually need to prove in a broker claim.
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07
Engineer and architect negligence.
Design defects, failure to comply with the Building Code of Australia, negligent supervision of construction, and defective certification. Construction-professional claims often overlap with property litigation and require coordinated expert evidence.
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08
Real estate agent negligence.
Misleading representations about the property or the market, failure to disclose material defects, mishandling of trust funds, and negligent advice on price or terms. Often runs alongside a misleading and deceptive conduct claim under the Australian Consumer Law.
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09
Surveyor and quantity surveyor negligence.
Boundary errors, negligent identification of easements or encumbrances, and incorrect quantity calculations that led to underquoting or overquoting on a construction contract.
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10
Company secretary and administrator negligence.
Failure to lodge statutory documents, mishandling of company records, and negligent advice on corporate governance obligations. Increasingly relevant where a company's administrator has caused a preventable loss to creditors or shareholders, which can also raise issues under our Corporations Law and Directors Duty Disputes service.
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11
Expert witness negligence.
Negligent expert evidence that caused a party to lose or settle a case at a value they wouldn't have accepted with competent evidence. Since Kelly v Jowett the courts have accepted that expert witnesses can be liable for negligent evidence, and Aptum has published on the practical implications for both experts and instructing solicitors.
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12
Franchisor and franchise adviser negligence.
Misleading pre-contract disclosure, negligent advice on the franchise's commercial viability, and breach of the Franchising Code of Conduct. Overlaps heavily with contract and consumer law claims. See whether a franchisee can sue for misleading conduct.
The four elements of a professional negligence claim
Every professional negligence claim in Australia turns on the same four elements. If any of them is missing, the claim doesn't run. Aptum builds every claim around these four from the value conversation onward: where the case is strong on all four we prosecute, and where one element is weak we say so before you have committed to litigation.
01. Duty of care
The professional owed the plaintiff a duty of care. For clients this is usually simple, the retainer or engagement creates the duty. For third parties, someone who wasn't the professional's client but relied on their work, the duty is a much harder argument and turns on the reasoning in Hedley Byrne v Heller and later Australian cases.
02. Breach of that duty
The professional's conduct fell below the standard of a reasonable, competent professional practising in that field. This is almost always proved through expert evidence from another practitioner in the same discipline. The expert has to say the conduct fell below the professional standard, not just that they would have done it differently.
03. Causation
The breach caused the loss. This is where most professional negligence claims are won or lost. The plaintiff has to prove what would have happened if the professional had acted competently, and that the different outcome would have avoided the loss. In legal negligence claims this becomes the “case within a case” question. Our guide on what you need to prove works through it.
04. Loss that is recoverable at law
The loss is of a kind the law recognises. Pure economic loss, consequential loss, opportunity cost, and reliance losses are all in play, but each has its own rules and the professional's engagement scope may narrow what can be recovered.
Litigation funding for professional negligence claims
Professional negligence claims are expensive to run. Expert evidence alone often costs six figures, and the discovery process on a complex accounting or auditor claim can dwarf that.
Aptum is a market leader in facilitating funding solutions for professional negligence claimants. That means clients with a strong case but limited working capital can still bring the claim, with a funder taking a share of the recovery in exchange for covering the costs and the adverse costs risk.
We work with the leading Australian litigation funders and know the assessment criteria each of them applies. At the pathways assessment stage we tell clients whether the matter is fundable, what a typical funder deal looks like, and what the after-funding recovery is likely to be at settlement or judgment. Funded matters are structured to preserve the client's control of the case.
Not every claim needs a funder. Where the client has the working capital and prefers to run the matter on their own account, we run it that way. The funding conversation is a pathways question, not a default.
"Nigel Evans, with David Adason and the Aptum team, are among Claim Funding Australia's most highly valued and trusted collaborators. Nigel and the team wield a significant power to weight ratio and deliver a sophisticated and highly effective method to litigation and dispute resolution."
Jason Geisker, Head of Claims Funding Australia and Principal Lawyer at Maurice Blackburn
What stage is your professional negligence matter at?
Professional negligence claims move through stages, and where you are now decides which Aptum service is the right fit.
I think I've been given negligent advice or service and want to know if I have a claim.
This is the right page. Aptum assesses standard of care, causation and loss to tell you whether a claim is realistic before you commit.
I've received a letter of demand alleging I gave negligent advice.
You need our Financial Services and Securities Litigation service or defence-side representation. Aptum acts for professionals defending negligence claims as well as claimants prosecuting them.
The professional negligence involves a company valuation dispute.
This may sit inside our Shareholder and Partnership Disputes service. Valuation disputes often overlap with oppression, buy-out, and unfair prejudice claims.
The professional was a director or officer of my company.
You need our Corporations Law and Directors Duty Disputes service. Directors' duty breaches are prosecuted under the Corporations Act rather than the common law of professional negligence.
The claim is against my accountant or tax adviser and involves the ATO.
You may need our Tax Litigation service or Objections to Tax Assessments service as well. Where negligent tax advice has produced an ATO liability, both the negligence claim and the tax dispute usually need to run in coordination.
I'm not sure which category I'm in.
Book the value conversation below. We sort the pathway question in the first meeting.
What Aptum brings to professional negligence matters
Nigel Evans
Nigel Evans, Aptum's Managing Director and Co-Founder, leads Aptum's professional negligence practice. Before founding Aptum, Nigel spent 11 years at the commercial Victorian Bar acting in professional negligence, valuation, and commercial disputes. He is listed in Best Lawyers in Australia for Commercial Litigation (2026) and recognised by Doyle's Guide as a Leading Commercial Litigation and Dispute Resolution Lawyer.
Nigel's Bar background matters here because professional negligence cases are heavy on expert evidence and are usually decided at trial or in the shadow of trial preparation.
David Adason
Nigel is supported by David Adason, Aptum's Associate Director. David has practised commercial litigation exclusively across his career, including a period as Associate to a Justice of the Federal Court of Australia. Doyle's Guide has recognised David as a Rising Star in Commercial Litigation and Insolvency Law. David architected Aptum's project management framework and runs the day-to-day conduct of professional negligence matters, breaking complex legal issues into their component parts for forensic assessment.
That combination of Bar advocacy experience and forensic commercial litigation practice is not biography. It shapes how Aptum runs your professional negligence claim.
Expert evidence is where these cases are won or lost
The court doesn't accept that a professional was negligent because you say so. It accepts it because a competent expert in the same field says so, on the record, and stands up under cross-examination. We know which experts in Australia hold up under pressure in each discipline (accounting, valuation, audit, financial planning, legal, engineering) and we brief the evidence from the outset with the trial in mind.
The causation case has to be built first, not last
Most professional negligence claims that fail, fail on causation. The plaintiff proved the professional made a mistake but couldn't prove the mistake caused the loss they're claiming. We build the causation case at pleadings stage so the evidence lines up when it matters.
Funding options change what's possible
Some strong professional negligence claims never get run because the plaintiff can't fund the case. Aptum's relationships with the leading Australian litigation funders mean we can put a funded structure in front of a client at the value conversation, not months into the matter.
What makes Aptum different
Specialist expertise
All we do is litigate complex commercial and tax disputes.
Legal intelligence framework
Practical, ongoing risk assessment to focus on the essential.
Project management framework
Routine documented strategy through custom project management.
An investor forced from a business gets a fairer valuation of the share price
Problem. An investor in an early-stage business had been forced out through a compulsory share buy-out at what presented as an undervalued share price, and came to Aptum to initiate a substantial professional negligence claim against the professional accounting firm who had conducted the business valuation.
Aptum’s role. Aptum reopened the valuation to give our client a voice in the process of determining the value of the shares, and worked closely with an independent valuation expert to reconstruct the correct methodology.
Outcome. Aptum worked closely with the client and a litigation funder to achieve a successful outcome within 12 months of issuing proceedings. Aptum ensured the director received a fair amount based on their interest in the business.
“As strangers to the Australian legal system, and indeed litigation funding, we probably weren’t the easiest guys to deal with. But Aptum made the process clear and there were no surprises.”
- Martin Fine (Director)
Recent matter outcomes
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01
A client pursues a claim against a former solicitor
Problem. After unsuccessfully pursuing a substantial commercial dispute, a business owner sought to bring a professional negligence claim against his former solicitor. The dispute centred on the quality of legal advice provided during the earlier proceeding and whether a settlement opportunity should have been accepted. Aptum's role. Aptum developed a litigation strategy focused on achieving an efficient commercial outcome, including agreeing an alternative document exchange process and securing consent orders to progress the dispute rapidly towards mediation. Outcome. Aptum helped position the client to pursue his claim efficiently while avoiding unnecessary costs and delay, creating an opportunity for an earlier commercial resolution.
What happens when you engage Aptum
Aptum runs every matter under our project management framework, with clear expectations on timing, cost and scope from the first call. Before you pay us anything, you get two points of contact, both free, so you know exactly where you stand. No surprises.
Value conversation (free)
You tell us what the professional did, what advice or service you paid for, what went wrong, and what loss you're claiming. We tell you whether the four elements are realistically present, what the causation case looks like, and what to expect on cost, timing and scope if you engage us. You get the time and expertise of a senior practitioner who has handled matters like yours, before you have committed to anything. No obligation.
Pathways assessment
Once you engage, you receive a documented strategy and a cost forecast aligned to the stages of your matter. For professional negligence claims that typically means identifying the standard-of-care expert we'll brief, mapping the causation story, deciding whether the matter is fundable and, if it is, putting a funder proposal in front of you before we file. The pathways assessment is where the case gets structured for how it will actually run.
Execution
This is the phase for the letter of demand, mediation, filing the proceeding, briefing expert evidence, discovery, and either settlement or trial. Routine documented strategy. Regular communications. A relentless focus on the essential issues. Project management isn't a bolt-on at Aptum, it's a discipline embedded in every part of our practice.
How we manage cost
Professional negligence litigation isn't cookie-cutter. Expert evidence alone often runs into six figures, and complex accounting or audit matters can require multi-year discovery. What we commit to is one of our five client service promises: clear expectations as to the timing, costs and scope of our engagement, and updating those expectations as early as possible if anything changes.
Value conversation.
A free first meeting to work out exactly what happened, what the four elements look like on your facts, and whether the matter is worth pursuing.
Estimate and scope.
Once engaged, you receive a documented strategy and a cost forecast aligned to the stages of your matter. Stage-based budgets, regular reporting, and any scope changes documented and agreed in writing.
Litigation funding options.
Where the case has strong prospects and adequate quantum, Aptum can put a funded structure in front of you at the value conversation. Funded matters shift the cost risk to the funder in exchange for a share of the recovery, and are structured to preserve the client's control of the case.
Investment mindset.
Aptum approaches every matter with an investment mindset: the most practical outcome in the shortest possible time, at the least possible cost, with the biggest possible return.
Frequently asked questions
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What is professional negligence in Australia?
Professional negligence is a claim brought against a professional (accountant, lawyer, financial adviser, auditor, valuer, engineer, or other expert) whose conduct fell below the standard of a reasonable, competent professional in their field and caused the claimant a loss. It is grounded in the common law of tort and in some cases the terms of the retainer, and is often run alongside a claim under the Australian Consumer Law for misleading or deceptive conduct.
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What are the elements of a professional negligence claim?
Four. Duty of care owed to the plaintiff. Breach of that duty, measured against the standard of a competent professional in the same field. Causation, meaning the breach caused the loss. And loss that is recoverable at law. Every professional negligence claim in Australia is built on these four elements, and most claims that fail do so on causation.
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How do I sue a professional for negligence?
By commencing proceedings in the Supreme Court or Federal Court, depending on the amount and the professional's home jurisdiction, after gathering the expert evidence you need to prove breach and causation. Most claims start with a letter of demand or a mediation invitation before proceedings are filed. Aptum runs the whole pathway from initial assessment through to trial and enforcement.
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What is the limitation period for professional negligence in Australia?
Six years from the date the cause of action accrued in most Australian states, though this differs between contract-based claims and tort-based claims and there are important exceptions for concealed loss, latent defect and minor plaintiffs. The safest approach is to seek advice quickly. If you are within a year of what you think is the limitation date, treat it as urgent.
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Can I sue my accountant for bad tax advice?
Yes, if the advice fell below the standard of a competent accountant, caused you a loss you would not otherwise have suffered, and the loss is recoverable at law. The most common accountant negligence claims involve negligent CGT structuring, missed Division 7A issues, negligent tax planning around trusts, and failure to identify tax exposure on a transaction the accountant advised on. Where the ATO is also involved, our Tax Litigation service usually runs in coordination.
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Can I sue my lawyer for negligence?
Yes. Legal negligence claims cover missed limitation periods, negligent drafting of contracts and wills, failure to advise on material risks, conflicts of interest, and negligent conduct of litigation. Legal negligence claims typically require a “case within a case” analysis, meaning you have to prove what the outcome would have been if the lawyer had acted competently.
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Can I sue a valuer for a wrong valuation?
Yes, where the valuation was negligent (not just wrong) and caused a party to enter a transaction they would not otherwise have entered, or to receive less than they were entitled to. Valuer negligence is common in share buy-outs, lending transactions, and estate valuations, and the claim usually requires a competing valuation from an independent expert.
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How much does a professional negligence claim cost?
It depends on the complexity of the matter, the amount of expert evidence required, the discovery burden, and whether the matter goes to trial or settles. A simple valuation dispute may resolve for under $50,000 in fees. A complex audit or financial adviser matter can run into several hundred thousand dollars. At the pathways assessment stage we give you a stage-based cost forecast so you know what each stage will cost before you commit to it. Where the case is fundable, we can put a funded structure in front of you that shifts the cost risk.
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Do I need expert evidence to sue a professional?
Yes, in almost every case. The court decides whether the professional's conduct fell below the standard through the evidence of another competent professional in the same field. Some very simple factual breaches, such as missing a limitation date, may not need expert evidence on breach, but expert evidence on causation and loss is almost always required.
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What can I recover in a professional negligence claim?
The measure of damages depends on whether the claim is framed in contract or in tort. In tort, the plaintiff is typically entitled to be put back in the position they would have been in if the professional had not been negligent. In contract, the plaintiff may be entitled to be put in the position they would have been in if the contract had been performed properly. Both frames allow recovery of consequential loss, opportunity cost in some circumstances, and in some claims interest and costs on top of the principal amount.
Offices
Aptum services professional negligence clients across Australia from three offices.
Thinking on professional negligence
Aptum publishes regularly on professional negligence, expert evidence, valuation disputes, and the practical mechanics of running these claims.
Get clarity on your professional negligence claim
A negligent professional cost you money you shouldn't have lost. The question isn't whether they made a mistake, it's whether the four elements of a professional negligence claim line up on your facts, and whether the recovery is worth the fight.
In a free value conversation, Aptum's professional negligence team will tell you exactly where you stand, whether the case is realistic, and if it is, whether a litigation funder should be part of the structure. No surprises.
Call (03) 7020 9230
Book your value conversation