Where a government buy-back scheme pays full uncontaminated market value for a property that was the subject of negligent conveyancing advice, the buy-back constitutes a superseding event that breaks the chain of causation, limiting recoverable damages to losses incurred before the buy-back date. Costs of repurchasing and rebuilding on the same site are not recoverable as they are not attributable to the solicitor's negligence. Claims for disappointment and distress in solicitors' negligence are barred by s 35 of the Civil Law (Wrongs) Act 2002 (ACT) unless the plaintiff establishes a recognised psychiatric illness.
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