Principal Properties Pty Ltd v Brisbane Broncos Leagues Club Limited

The appeal in Principal Properties Pty Ltd v Brisbane Broncos Leagues Club Limited was heard by the Supreme Court of Queensland. The appellant, Principal Properties, sued the respondent, Brisbane Broncos Leagues Club Limited, for breach of contract over a commercial opportunity to acquire and develop certain land. The trial judge ruled in favour of the respondent, finding that the project was more likely to incur a loss than to make a profit, and thus, the appellant had not suffered a compensable loss. Principal Properties appealed this decision, challenging the trial judge's interpretation of the remoteness and causation of damages in the context of a lost commercial opportunity.

The primary legal issue was whether damages could be awarded for a lost commercial opportunity where the project was more likely to incur a loss than to make a profit. This hinged on whether the magnitude of the potential profit sufficiently exceeded the magnitude of the potential loss to constitute a compensable loss. The appeal court considered whether the trial judge correctly applied the principles of remoteness and causation in the context of lost commercial opportunities, particularly where the likelihood of profit was less than 50 per cent.

The appeal court allowed the appeal and set aside the trial judge's order. The court found that the trial judge erred in concluding that a lost commercial opportunity that was more likely to result in a loss than a profit was not compensable. The appeal court reasoned that the magnitude of the potential profit, if sufficiently large, could justify compensation even if there was a higher likelihood of loss. Consequently, Principal Properties was awarded $250,000 in damages, along with interest of $62,307.37. The court also directed the parties to submit written arguments regarding the costs of the proceedings within 14 days.