Hardivan Holdings Pty Limited v Australian and New Zealand Banking Group

Hardivan Holdings Pty Limited (the plaintiff) brought proceedings against the Australian and New Zealand Banking Group (the defendant) in the Supreme Court of New South Wales, Court of Appeal. The dispute concerned the plaintiff's claim for damages arising from the defendant's alleged breach of a duty of care owed to the plaintiff in relation to the provision of financial advice.

The central legal issue before the Court of Appeal was whether the defendant owed a duty of care to the plaintiff in providing financial advice, and if so, whether that duty had been breached. Specifically, the court had to consider the scope of the duty of care in the context of a banker-customer relationship and whether the advice given by the bank fell below the standard expected of a reasonable and prudent banker in similar circumstances.

The Court of Appeal, in its reasoning, affirmed that a bank can owe a duty of care to its customer in providing financial advice, particularly where the customer relies on the bank's expertise and the bank is aware of this reliance. The court examined the specific circumstances of the advice given, the nature of the plaintiff's request, and the information provided by the defendant. Applying established principles of negligence, the court determined whether the defendant's conduct constituted a breach of the duty of care. The court found that the defendant had indeed breached its duty of care to the plaintiff.

The Court of Appeal allowed the plaintiff's appeal, setting aside the judgment of the court below and ordering that the plaintiff be awarded damages.