L Shaddock & Associates Pty Ltd v Parramatta City Council (No 2)

L Shaddock & Associates Pty Ltd (the plaintiff) brought proceedings against Parramatta City Council (the defendant) in the Supreme Court of New South Wales, seeking damages for negligence. The plaintiff alleged that the Council had provided negligent advice regarding the need for a road widening proposal to affect its property, leading to financial loss. The matter proceeded to the High Court of Australia on appeal.

The High Court was required to determine whether the Council owed a duty of care to the plaintiff in providing information about a proposed road widening scheme. Specifically, the court considered whether the Council's knowledge of the potential impact of the proposal on the plaintiff's land, coupled with the plaintiff's reliance on the Council's information, gave rise to a duty of care in tort. The court also had to assess whether the information provided by the Council was, in fact, negligent.

The High Court, in a joint judgment, held that a duty of care could arise in circumstances where a public authority provides information or advice which it knows, or ought reasonably to know, will be relied upon by a particular person or class of persons, and that reliance is reasonable. The court found that the Council had knowledge of the proposed road widening and its potential impact on the plaintiff's property. Furthermore, the plaintiff had sought specific information from the Council and had reasonably relied on that information. The court concluded that the Council had breached its duty of care by failing to exercise reasonable care in the provision of that information.

The High Court allowed the appeal, finding the Council liable in negligence. The case was remitted to the Supreme Court of New South Wales for the assessment of damages.