I & L Securities Pty Ltd v HTW Valuers

The High Court of Australia considered an appeal by I & L Securities Pty Ltd (the appellant) against HTW Valuers (the respondent). The dispute concerned the valuation of a property and the appellant's claim for damages arising from alleged negligence in the performance of that valuation.

The central legal issue before the High Court was whether the respondent owed a duty of care to the appellant in conducting the valuation, and if so, whether that duty had been breached. Specifically, the Court had to determine the scope of the duty of care owed by a valuer to a third party who relies on the valuation, and the principles governing the assessment of damages in such circumstances.

The High Court, in a joint judgment, held that a duty of care could arise in favour of a third party who relies on a valuation, even if the valuer was instructed by another party. The Court applied established principles of negligence, considering factors such as the foreseeability of reliance by the third party and the proximity of the relationship between the valuer and the third party. The Court found that the respondent valuer had breached its duty of care to the appellant by failing to exercise reasonable skill and care in conducting the valuation. The appeal was allowed, and the matter was remitted to the trial court for the assessment of damages.