Areas of potential risk for mediators have been highlighted by the recent Australian case, Tapoohi v Lewenberg [2003], where a dispute between two sisters over their late mother’s estate evolved into a negligence claim against one of the lawyers. The lawyer then claimed contribution against a QC mediator.
Three lawyers represented Mrs Tapoohi at the mediation. She participated in the mediation by telephone. Mrs Lewenberg was present at the mediation and was represented by four lawyers. The estate included several properties owned through complex company structures. The parties executed a settlement at mediation, pursuant to which Mrs Tapoohi agreed to pay to Mrs Lewenberg A$1.4m (£578,000) in exchange for two properties and a nominal figure of A$1 for the transfer of some shares. Following receipt of tax advice months after the settlement, it was discovered that the consideration for the shares had undesirable tax consequences for Mrs Tapoohi.
