Glenhaven Property Holdings Pty Ltd v Oaktwig Pty Ltd

Glenhaven Property Holdings Pty Ltd (Glenhaven) appealed to the Court of Appeal of New South Wales against a decision of the primary judge concerning a development application for housing. The dispute involved allegations of professional negligence and misleading and deceptive conduct against Oaktwig Pty Ltd (Oaktwig), relating to advice provided regarding the prospects of obtaining approval for the development under State Environmental Planning Policy No 5 (SEPP5).

The Court of Appeal was required to determine whether Oaktwig had breached its duty of care in tort and contract by providing advice that the development application had a reasonable prospect of approval. Further, the court had to consider whether Oaktwig engaged in misleading and deceptive conduct in contravention of sections 41 and 42 of the *Fair Trading Act 1987* (NSW), specifically whether there were reasonable grounds for the representations made. The court also considered whether a party to a second contract was a corporation at the time the first contract was entered into, given its subsequent incorporation.

The Court of Appeal upheld the primary judge's findings. It reasoned that the test for professional negligence involved assessing whether the advice given was within the range of reasonable professional opinions, even if it ultimately proved incorrect. Regarding the *Fair Trading Act* claims, the court found that Oaktwig had reasonable grounds for its representations, meaning it had not engaged in misleading or deceptive conduct. The court also determined that the party in question was not a corporation at the time of the first contract.

Consequently, the appeal was dismissed with costs.