Perpetual Trustee Co Ltd v Crooks Michell Peacock Stewart Pty Ltd

Perpetual Trustee Co Ltd (the plaintiff) brought proceedings against Crooks Michell Peacock Stewart Pty Ltd (the defendant) in the Supreme Court of New South Wales. The dispute concerned the plaintiff's claim for damages arising from alleged negligence on the part of the defendant in carrying out certain engineering and surveying work. The plaintiff sought to recover losses it alleged were caused by the defendant's failure to exercise reasonable care and skill in the performance of its contractual obligations.

The primary legal issue before the Court of Appeal was whether the plaintiff had established a breach of duty of care by the defendant. Specifically, the court had to determine if the defendant's conduct fell below the standard of care expected of a reasonably competent engineer and surveyor in the circumstances. This involved an examination of the evidence presented regarding the nature of the work undertaken, the alleged defects, and the causal link between those defects and the plaintiff's claimed losses.

The Court of Appeal, in its reasoning, considered the principles of negligence as applied to professional services. It analysed the expert evidence to assess whether the defendant's actions or omissions constituted a failure to exercise reasonable skill and care. The court affirmed that the standard of care required of a professional is that of a reasonably prudent member of that profession, judged at the time the services were rendered. The court found that the plaintiff had not discharged the onus of proving that the defendant had breached its duty of care. Consequently, the appeal was dismissed.