Heperu Pty Ltd & Ors v Morgan Brooks Pty Ltd & Ors

Heperu Pty Ltd and others brought a proceeding against Morgan Brooks Pty Ltd and others in the Federal Court, alleging claims of economic loss based on negligence and misleading and deceptive conduct. The defendants sought to have the plaintiffs' leave to amend their statement of claim refused, arguing that the new claims did not disclose an arguable cause of action.

The court considered whether the plaintiffs' new claims for economic loss founded on negligence and misleading and deceptive conduct could be established. The court noted that the duty of care alleged in the new claims arose in novel circumstances, and the law in this developing area was still evolving. The court held that the importance of the facts in developing the law in this area meant that the plaintiffs' new claims should not be dismissed outright, and that leave to amend should be granted.

After considering the arguments of both parties, the court concluded that the plaintiffs' new claims did disclose an arguable cause of action, and that leave to amend should be granted. The court held that the plaintiffs' claims were not so lacking in merit as to be an abuse of process to allow them to be pursued, and that it was in the interests of justice to grant leave to amend.

The court therefore granted the plaintiffs' application for leave to amend their statement of claim, and ordered that the defendants' application to strike out the new claims be dismissed. The case will now proceed to trial, with the plaintiffs able to pursue their claims for economic loss based on negligence and misleading and deceptive conduct.