Advisor liability: claims for contribution or reimbursement between an advisor and the advisee's contract-partner

Incorrect information from an advisor may induce the advisee to enter into a contract with a third party, who may breach the contract. An advisor who is liable towards the advisee and has paid compensation may wish to recoup all or some of that compensation from the advisee’s contract-partner. By the same token, a contract-partner who has paid compensation to the advisee may wish to recoup all or some of that compensation from the advisor. This paper discusses how liability is, and should be, allocated between the two wrongdoers both under a regime of joint and several liability and under Australia’s proportionate liability statutes. This paper discusses the allocation of liability between the two wrongdoers where the advisee claims damages for breach of contract from the contract-partner, and also where the contract-partner is liable for misrepresentation and the advisee claims damages for that misrepresentation.