LM Investment Management Limited (In Liquidation) (Receivers appointed) v BMT and Assoc Pty Limited

LM Investment Management Limited, in liquidation with receivers appointed, pursued legal action against BMT and Assoc Pty Limited, a firm of expert quantity surveyors. The dispute centred around the surveyors' alleged failure to provide services with reasonable care and skill, resulting in economic loss due to a negligent valuation of construction works. The case was heard in the Supreme Court of New South Wales. The court was tasked with determining whether there was an implied contractual obligation for the surveyors to provide services with reasonable care and skill, and whether there was a duty of care in tort to prevent economic loss caused by their negligence. Additionally, the court considered whether the lender's claim was apportionable, if the borrower was a concurrent wrongdoer under the Civil Liability Act 2002 (NSW), and if the plaintiff was guilty of contributory negligence. The court also assessed the measure and remoteness of damages in the context of the lender's reliance on the negligent valuation and misleading conduct for advancing money.

The Supreme Court found that there was indeed an implied contractual obligation for the surveyors to provide services with reasonable care and skill. The court held that the surveyors owed a duty of care in tort to the lender to prevent economic loss caused by their negligent valuation. The court ruled that the lender's claim was apportionable, but the borrower was not considered a concurrent wrongdoer. The court also determined that the plaintiff was not guilty of contributory negligence. In terms of damages, the lender was entitled to recover the difference between the amount lent and what would have been lent had the surveyors' wrongful conduct not occurred. The court held that the damages were not too remote and were directly caused by the surveyors' negligence.

In conclusion, the Supreme Court of New South Wales ruled in favour of LM Investment Management Limited, finding BMT and Assoc Pty Limited liable for breach of implied contractual obligations, breach of duty of care in tort, and awarding damages to the lender. The court's decision provided clarity on the surveyors' responsibility for their negligent valuation and the lender's entitlement to recover damages. The final orders of the court will reflect these findings, providing a resolution to the dispute between the parties.