Doiho Pty Ltd v Bridge Real Estate Pty Ltd

Doiho Pty Ltd (the plaintiff) brought proceedings against Bridge Real Estate Pty Ltd (the defendant) alleging negligence. The dispute concerned the defendant's alleged failure to take reasonable care in its dealings with a document, which the plaintiff claimed led to economic loss. The matter was heard in the Court of Appeal of New South Wales.

The primary legal issue before the court was whether a contractual agent owes a common law duty of care to its principal to prevent economic loss arising from a third party's dishonest use of a document entrusted to the agent. Specifically, the court had to determine the scope of the duty of care owed by a real estate agent to its client in the context of handling important documents.

The court reasoned that the relationship between the plaintiff and the defendant was governed by contract, and that the common law duty of care in negligence does not extend to preventing economic loss caused by the dishonest acts of a third party. The court found that the defendant's contractual obligations did not encompass a duty to guard against such intentional wrongdoing by others. Therefore, the defendant owed no duty of care to the plaintiff in respect of the third party's dishonest use of the document.

The appeal was dismissed, and the plaintiff was ordered to pay the defendant's costs.