Davridge Pty Ltd v Commonwealth Bank of Australia

Davridge Pty Ltd (the appellant) appealed to the New South Wales Court of Appeal against a decision of the Supreme Court of New South Wales. The dispute concerned the appellant's claim against the Commonwealth Bank of Australia (the respondent) for damages arising from the respondent's alleged breach of duty in its dealings with the appellant.

The primary legal issue before the Court of Appeal was whether the respondent bank owed a duty of care to the appellant company in relation to the provision of financial advice and the management of the appellant's accounts, particularly in circumstances where the appellant was experiencing financial difficulties. The court was required to consider the nature and scope of the duty of care owed by a bank to its customer, and whether that duty extended to advising on the wisdom of particular investments or business strategies.

The Court of Appeal held that, in the absence of special circumstances, a bank's duty of care to its customer is generally confined to the proper conduct of the banking transaction itself and does not extend to advising on the commercial viability of a customer's business or investments. The court found that the respondent had not assumed a responsibility to provide such advice, nor were there any circumstances that would give rise to such a duty. The appellant's financial difficulties were a matter for the appellant to manage, and the bank was not obliged to intervene or provide guidance beyond its standard banking services.

The appeal was dismissed.