Christie v Purves

The appeal concerned a dispute between Mr Christie and the respondents, partners in an accounting firm, regarding taxation advice and the management of Mr Christie's financial affairs. Mr Christie alleged that the first respondent provided negligent taxation advice and engaged in misleading or deceptive conduct, resulting in financial damage. The central issue before the Court of Appeal of New South Wales was whether Mr Christie's claims were statute-barred under section 14 of the *Limitation Act 1969* (NSW) and section 68 of the *Fair Trading Act 1987* (NSW).

The court was required to determine when Mr Christie's causes of action accrued for the purposes of the relevant limitation periods. Specifically, it needed to ascertain the point at which he suffered actual, measurable damage in relation to his claims for loss of income, loss of potential income tax reductions, and the infringement of his interest in maintaining orderly professional affairs and business records. The court also considered whether the damage, even if prospective, commenced the limitation period.

The court applied the general principle that a cause of action accrues when the plaintiff first suffers any actual, measurable damage, even if that damage is prospective and not yet discovered. In this instance, the court found that the loss of income was suffered immediately upon Mr Christie's appointment as a judge on 8 September 1993. The loss arising from the failure to obtain income tax reductions was deemed to have been suffered at the end of each relevant financial year (1991, 1992, and 1993). The damage relating to the confusion and disorder in his taxation records was considered to have occurred when an independent review of those records became necessary. The court upheld the trial judge's assessment that the costs associated with reviewing Mr Christie's financial affairs were merely an increase in the loss suffered from the initial accrual date.

The appeal was dismissed, with the Court of Appeal affirming the trial judge's findings and ordering that Mr Christie pay the costs of the appeal.