McKinnon & Anor v Commonwealth Bank of Australia

The applicants, McKinnon and Anor, brought proceedings against the Commonwealth Bank of Australia in the High Court of Australia. The dispute concerned the Bank's alleged breach of its duty of care to the McKinnons, who were customers of the Bank. The McKinnons claimed that the Bank had acted negligently in its dealings with them, leading to financial losses.

The central legal issue before the High Court was whether the Commonwealth Bank owed a duty of care to the McKinnons in the circumstances of their relationship, and if so, whether that duty had been breached. This involved an examination of the nature of the banking relationship and the scope of the Bank's obligations to its customers, particularly in relation to financial advice or transactions that could result in loss.

McHugh J, in his judgment, considered the established principles of negligence and the specific duties that arise in a banker-customer relationship. His Honour analysed the factual matrix to determine if the Bank's conduct fell below the standard of care expected of a reasonable banker in similar circumstances. The judgment would have ultimately determined whether the Bank's actions constituted a breach of duty and, consequently, whether the Bank was liable for the losses suffered by the McKinnons.