AE Consulting Pty Ltd v Online Valuations Pty Ltd

AE Consulting Pty Ltd brought a claim against Online Valuations Pty Ltd, seeking damages for the valuers' alleged negligent valuation of a property. AE Consulting had made a loan to a borrower who used the valuation as a basis for obtaining the loan. The borrower defaulted on the loan, and AE Consulting was forced to resell the property, receiving a sale price significantly less than the valuation. AE Consulting argued that the valuers' negligence led to the financial loss, and sought damages for the difference between the valuation and the resale price, interest on the loan, and costs associated with the default. The valuers argued that AE Consulting's claim was unliquidated, and that some heads of damages were not recoverable.

The court was required to determine whether AE Consulting's claim was a liquidated claim, meaning a claim for a specific sum of money. The court also had to determine which heads of damages were recoverable. The court noted that liquidated claims are those where the amount due is fixed and certain, whereas unliquidated claims are those where the amount due is uncertain or requires assessment. The court also considered whether contractual interest and amounts referable to the borrower's default were recoverable heads of damages.

The court found that AE Consulting's claim was not a liquidated claim, as the amount of damages was uncertain and required assessment. The court held that AE Consulting was entitled to recover the difference between the valuation and the resale price, as this was a direct consequence of the valuers' negligence. The court also held that contractual interest was recoverable as it was a term of the loan agreement. However, the court found that amounts referable to the borrower's default were not recoverable, as they were not a direct consequence of the valuers' negligence.

The court ordered Online Valuations Pty Ltd to pay AE Consulting Pty Ltd the difference between the valuation and the resale price, plus contractual interest, and costs. The court declined to award any damages in relation to the borrower's default.