Civilstruct Pty Ltd T/a Andreotta Cardenosa Consulting Engineers and an or v Lyons and Ors P5/2000

The High Court of Australia heard an appeal concerning a dispute between Civilstruct Pty Ltd trading as Andreotta Cardenosa Consulting Engineers and others (appellants) and Lyons and others (respondents). The underlying dispute involved allegations of negligence against the consulting engineers in relation to the design and supervision of a building project.

The central legal issue before the High Court was whether the appellants owed a duty of care to the respondents, who were subsequent purchasers of the building, for economic loss arising from alleged defects in the engineering design and supervision. This involved considering the principles governing the liability of professionals for pure economic loss in the absence of a contractual relationship.

The High Court, in allowing the appeal, held that the appellants did not owe a duty of care to the respondents. The Court reasoned that the established principles for establishing a duty of care in cases of pure economic loss, particularly in the context of building defects and subsequent purchasers, did not extend to the circumstances of this case. The Court emphasised the importance of the proximity between the parties and the foreseeability of the loss, finding that neither was sufficiently established to impose a duty on the engineers to subsequent purchasers. The Court distinguished this case from previous authorities where a duty of care had been found, noting the absence of any assumption of responsibility by the engineers towards the respondents.

The High Court ordered that the appeal be allowed and the orders of the Full Court of the Supreme Court of Queensland be set aside. The Court remitted the matter to the Supreme Court of Queensland for further consideration of the respondents' claims.