Perpetual Trustee Co Limited v Crooks Michell Peacock Stewart Pty Ltd

Perpetual Trustee Co Limited (the plaintiff) brought proceedings against Crooks Michell Peacock Stewart Pty Ltd (the defendant) in the Supreme Court of New South Wales, Court of Appeal. The dispute concerned the plaintiff's claim for damages arising from alleged negligence in the defendant's performance of engineering services.

The central legal issue before the Court of Appeal was whether the plaintiff had established a breach of duty of care owed by the defendant, and if so, whether that breach caused the loss claimed by the plaintiff. Specifically, the court had to consider the standard of care expected of a consulting engineer in the circumstances and the causal link between any alleged professional failing and the plaintiff's financial detriment.

The Court of Appeal, in its reasoning, applied established principles of negligence. It examined the expert evidence presented regarding the defendant's conduct and the plaintiff's losses. The court considered whether the defendant's actions or omissions fell below the standard of reasonable care and skill expected of a competent consulting engineer. Furthermore, the court assessed whether the plaintiff had demonstrated that the defendant's breach was a necessary cause of the loss suffered, applying the "but for" test and considering the concept of remoteness of damage. The court ultimately found that the plaintiff had not discharged the onus of proving negligence on the part of the defendant.

The appeal was dismissed, and the plaintiff was ordered to pay the defendant's costs.