L and L Securities Pty Ltd v HTW Valuers (Brisbane) Pty Ltd B48/2001

The High Court of Australia considered an appeal from the Supreme Court of Queensland in a dispute between L and L Securities Pty Ltd (the appellant) and HTW Valuers (Brisbane) Pty Ltd (the respondent). The appellant sought damages for alleged negligence in the valuation of a property.

The central legal issue before the High Court was whether the respondent owed a duty of care to the appellant in conducting a property valuation, and if so, whether that duty had been breached. This involved an examination of the principles governing the liability of valuers for negligent misstatement, particularly in circumstances where the valuer is aware that their report will be relied upon by a third party.

The High Court, in a joint judgment, affirmed the principles established in *Hedley Byrne & Co Ltd v Heller & Partners Ltd* and subsequent cases concerning negligent misstatement. The Court held that a duty of care can arise where a person possesses special skill or knowledge, and knows or ought reasonably to know that the other party will rely on that skill or knowledge. The Court found that the respondent's knowledge of the appellant's intended reliance on the valuation report was a critical factor in establishing the existence of a duty of care. The Court then considered whether the valuation itself was negligent, applying the standard of care expected of a reasonably competent valuer.

The High Court allowed the appeal, finding that the respondent had breached its duty of care to the appellant. The matter was remitted to the Supreme Court of Queensland for determination of the quantum of damages.