Patton v Harrison [No 2]

The New South Wales Court of Appeal heard an appeal concerning a dispute between the appellant, Mr. Patton, and the respondent, Mr. Harrison. The underlying matter involved a claim for damages for breach of contract and negligence arising from the sale of a business.

The primary legal issues before the Court of Appeal were whether the primary judge had erred in finding that the respondent had breached his contractual obligations and was negligent in his conduct concerning the sale of the business, and consequently, whether the assessment of damages was appropriate. The court was required to consider the scope of the respondent's duties to the appellant, both in contract and in tort, and the causal link between any breaches and the appellant's loss.

The Court of Appeal reviewed the evidence and the primary judge's findings. It was held that the respondent had indeed breached his contractual duty to provide accurate information regarding the business's financial performance and had acted negligently in failing to disclose material facts. The court affirmed that a vendor owes a duty of care to a purchaser to disclose all relevant information that might affect the purchaser's decision to buy, particularly where the vendor has superior knowledge. The principles of contractual interpretation and the tort of negligence were applied to determine the extent of the respondent's liability.

The Court of Appeal dismissed the appeal, upholding the primary judge's decision regarding liability and the quantum of damages awarded to the appellant.