Hungerfords v Walker

The High Court of Australia considered the appeal in *Hungerfords v Walker*. The dispute concerned the liability of a firm of accountants, Hungerfords, for negligent advice provided to a client, Mr. Walker, regarding a tax avoidance scheme. Mr. Walker suffered significant financial losses as a result of the scheme's failure and sought to recover these losses from Hungerfords.

The central legal issues before the High Court were whether the accountants owed a duty of care to Mr. Walker in providing the advice, whether that duty had been breached, and if so, what was the appropriate measure of damages for the loss suffered. Specifically, the Court had to determine if the accountants' negligence caused the loss, and if the loss was too remote or otherwise unrecoverable.

The Court held that the accountants did owe a duty of care to Mr. Walker. The reasoning focused on the reliance placed by the client on the professional expertise of the accountants. The breach of duty was established by finding that the advice provided was negligent. In determining damages, the Court applied the principle that damages in contract and tort are generally awarded to place the plaintiff in the position they would have been in had the contract been performed or the tort not committed. However, in this instance, the Court considered the "but for" test and the concept of causation, ultimately finding that the loss suffered by Mr. Walker was a direct consequence of the negligent advice. The Court also addressed the issue of contributory negligence, which was a factor in the assessment of damages.