Bevan v Rake

In *Bevan v Rake*, the Supreme Court of New South Wales was asked to determine whether a plaintiff, who had suffered a fractured ankle in a motor vehicle accident, was entitled to damages for economic loss arising from the loss of a business opportunity. The plaintiff, Mr. Bevan, alleged that the defendant, Ms. Rake, had negligently caused the accident. The central dispute revolved around the plaintiff's claim for lost profits from a proposed business venture that he contended he was unable to pursue due to his injuries.

The primary legal issue before the Court was whether the plaintiff could establish a sufficient causal link between the defendant's negligence and the loss of the business opportunity. Specifically, the Court had to consider whether the loss of profits was too remote a consequence of the defendant's actions, and whether the plaintiff had discharged his onus of proving, on the balance of probabilities, that the business opportunity would have been profitable and that he would have been able to participate in it but for the accident.

Judge Altobelli found that the plaintiff had failed to establish the necessary causal connection. The Court reasoned that the proposed business venture was speculative and that there was insufficient evidence to demonstrate that it would have been successful or that the plaintiff would have been involved in its operation. The principles of remoteness and causation in negligence were applied, requiring the plaintiff to prove not only that the injury was a cause of the loss, but also that the loss was not too remote a consequence of the negligent act. The Court noted that the plaintiff's inability to prove the profitability and his participation in the venture meant that the loss of profits was not a foreseeable or direct consequence of the accident.