Solicitors can owe a duty of care to non-clients when their actions impact the interests of those non-clients, particularly in property transactions governed by consent judgments.

Introduction

[1] This appeal is against the decision of the Learned Judge of the High Court ['LJ'] in a suit filed by the Plaintiff/Appellant ['P'] against 6 Defendants/ Respondents ['R1 - R6'] jointly and severally. A judgment in default ['JID'] had been obtained against the 1st Defendant ['R1'] on 10 January 2017 who, thus, was not involved in the trial at the High Court. As regards R2 and R3, the pleaded cause of action was breach of undertaking and/or negligence in their capacity as solicitors for the purchaser ['R1']. In respect of R4 - R6, the Appellant pleaded that they too as solicitors for the subsequent purchaser had acted negligently in failing, refusing or omitting to ensure that the full purchase price as per the Consent Judgment ['CJ'] is released to P's solicitors. At the conclusion of the trial, the LJ dismissed P's claim against both the sets of solicitors [R2 - R6]. Hence this appeal.

Background Facts

[2] The Appellant was the registered owner of all that piece of land held under Geran Hakmilik No 18104, at Lot 3022, Mukim Sepang, Daerah Kuala Langat, Selangor until 25 June 2015, ["the Land"].

[3] R1 filed a civil suit against the Appellant at the Seremban High Court, to which the Consent Judgment ['CJ'] was duly recorded by the parties on 27 January 2015. R1 was represented by R2 and R3.

[4] The terms agreed under the CJ, can be summarized as follows:

(a) clause 1 - The Appellant shall transfer the Land held under Geran Hakmilik No 18104, Lot 3022, Mukim Sepang, Daerah Kuala Langat, Negeri Selangor to R1 within 7 days from 27 January 2015;

(b) clause 2 - The Appellant shall execute all documents relevant for the transfer of the land and pass and serve the documents together with the original title of the land to the R1's solicitors, M/s Sharif & Khoo within 7 days from 27 January 2015;

(c) clause 3 - R1 shall pay RM1,000,000.00 to the Appellant within 9 months from 27 January 2015;

(d)clause 4 - R1 undertakes to instruct any bank or financial institution to release the sum not more than RM1,000,000.00 directly to the Appellant in the event R1 obtains a loan by charging the property;

(e) clause 5 - In the event R1 fails, refuses and/or omits to pay the judgment sum of RM1,000,000,00 to the Appellant within the said 9 months,

R1 shall transfer the land to the Appellant without any encumbrances, including caveat;

(f) clause 6 - R1 shall sign and execute Borang 14A in escrow to transfer the land and serve the said Borang 14A to the Appellant's solicitors within 7 days from 27 January 2015;

(g) clause 7 - If R1 fails, refuses and/or omits to pay the judgment sum of RM1,000,000.00 within 9 months from 27 January 2015, it is declared and ordered that the land absolutely belongs to the Appellant;

(h) clause 8 - R1 shall return the original title to the land to the Appellant in the event R1 fails, refuses and/or omits from paying the judgment sum of RM1,000,000.00 to the Appellant within 9 months from 27 January 2015;

(i) clause 9 - All expenses and conveyancing fees of the land from the Appellant to R1 and if necessary, in default from R1 to the Appellant shall be borne by R1;

(j) clause 10 - The period of 9 months must be extended with any additional days taken by the Appellant to serve Borang 14A dan the original title to the land in the event the Appellant takes more than 7 days to serve the documents, and

(k) clause 11 - No order as to costs.

[5] Vide a letter dated 2 February 2015 from Tetuan Yong Chee Kheong, Norashikin & Co acting for the Appellant, M/s Yong forwarded the Memorandum of Transfer in Form 14A ["th