Bassal v Savills (NSW) Pty Limited

In the case of Bassal v Savills (NSW) Pty Limited, the dispute arose from a joint venture agreement for the construction of an outlet shopping centre. The joint venture partners engaged a commercial real-estate agency to identify appropriate tenants for the centre. The Exclusive Leasing Agency Agreement required the agency to refer potential tenants to the joint venture partners for their approval. However, when the shopping centre opened, it was only 55% let. The joint venture partners defaulted on their loans, leading to the failure of the joint venture. The plaintiffs alleged that the real-estate agency failed to introduce tenants, breached the implied term of care, skill and diligence, and failed to implement an adequate leasing strategy, causing damages.

The court had to determine whether the real-estate agency breached the implied term of care, skill and diligence, and if so, whether the breach caused the economic loss claimed. The plaintiffs also argued that the agency had a duty to provide a specific outcome, namely a 90% leased shopping centre with high-end retailers, and failed to take necessary precautions. The court considered whether the plaintiffs established factual causation and whether the quantum of economic loss was properly explained. Ultimately, the court found that the real-estate agency did not breach the implied term of care, skill and diligence, and that even if such a breach had occurred, causation was not established. Additionally, the court noted that the plaintiffs did not clearly explain the quantum of economic loss.

The court concluded that the plaintiffs' negligence claim failed. The court held that the real-estate agency did not have a duty to provide a specific outcome, nor did it breach the implied term of care, skill and diligence. The court further found that even if such a breach had occurred, causation was not established, and the quantum of economic loss was not properly explained. Consequently, the court dismissed the plaintiffs' claim in its entirety.