Nurthern v Gallo

In *Northern v Gallo* [1993] NSWCA 202, the New South Wales Court of Appeal considered a dispute between the appellant, Northern, and the respondent, Gallo. The case concerned an appeal against a decision of a judge of the Supreme Court of New South Wales.

The primary legal issue before the Court of Appeal was whether the primary judge had erred in finding that the respondent had established a claim for negligent misstatement. This involved determining whether the appellant owed a duty of care to the respondent, whether there had been a breach of that duty through negligent misstatement, and whether the respondent had suffered loss as a result of relying on that misstatement.

The Court of Appeal analysed the principles governing negligent misstatement, particularly in the context of a professional advisor and a client. It considered the circumstances in which a duty of care arises, the requirements for establishing reliance on the misstatement, and the principles of causation and remoteness of damage. The Court examined the evidence presented at trial to assess whether the primary judge’s findings of fact were supported by the evidence and whether the legal tests had been correctly applied.

The Court of Appeal ultimately upheld the appeal, finding that the primary judge had erred in law. Consequently, the orders of the Supreme Court were set aside, and judgment was entered for the appellant.