North Coast Conveyancing Pty Ltd v Bradbury

The appeal concerned a dispute between North Coast Conveyancing Pty Ltd (the appellant) and Mr and Mrs Bradbury (the respondents) regarding negligent advice provided by the appellant in relation to the purchase of a property. The respondents had signed an option to purchase the property for twelve months but failed to exercise it within the stipulated time, thereby forfeiting their option fee. The appellant admitted a breach of duty concerning the advice given about the option.

The primary legal issues before the Court of Appeal were whether the trial judge had made sufficient findings regarding causation, specifically whether the respondents would have entered into the option agreement but for the negligent advice, and whether they would have exercised the option. The court also considered whether the loss of the option fee was caused by the appellant's negligent advice and if the evidence was adequate to resolve these issues on appeal.

The Court of Appeal found that the trial judge's findings on causation were insufficient to dispose of the matter. The court reasoned that the question of whether the respondents would have entered into the option agreement, and subsequently exercised it, but for the negligent advice, was a crucial element in establishing the appellant's liability for the forfeited option fee. Consequently, the court granted leave to appeal, allowed the appeal, and set aside the previous orders. The proceedings were referred to a Registrar for mediation, with a direction that if no settlement was reached, the matter would be remitted to the District Court for a retrial limited to the claim for damages related to the forfeited option fee and interest. The costs of the first trial were to be addressed during mediation or at the retrial, and the respondents were ordered to pay the appellant's costs in the Court of Appeal.