MM Constructions (Aust) Pty Ltd v Port Stephens Council

MM Constructions (Aust) Pty Ltd appealed to the Court of Appeal of New South Wales against a decision of the primary judge who had dismissed its claims against Port Stephens Council. The dispute concerned the council's processing and assessment of a development application, with MM Constructions alleging negligence and misfeasance in public office.

The Court of Appeal was required to determine whether the council owed MM Constructions a duty of care to avoid economic loss arising from the assessment of its development application. It also had to consider whether any officer of the council had committed the tort of misfeasance in public office, and whether the primary judge had adequately explained her credit findings in relation to the evidence presented.

The Court of Appeal found that no duty of care was owed by the council to MM Constructions to avoid foreseeable economic loss. Applying established principles, the court held that there was no relevant reliance by MM Constructions on the council, nor any assumption of responsibility by the council that would give rise to such a duty. Furthermore, the court found that MM Constructions was not vulnerable in a way that would justify imposing a duty of care, and that the posited duty was not conformable with the statutory scheme governing development applications, nor coherent with administrative law principles. Regarding the misfeasance claim, the court found no error in the primary judge's credit findings.

The appeal was dismissed with costs.