San Sebastian Pty Ltd v The Minister

San Sebastian Pty Ltd (the appellant) appealed to the High Court of Australia against a decision of the Supreme Court of New South Wales, which had dismissed its claim for damages against The Minister (the respondent). The appellant alleged that the respondent had been negligent in its planning and construction of a public road, which had allegedly caused damage to the appellant's property.

The central legal issue before the High Court was whether the respondent owed a duty of care to the appellant in relation to the planning and construction of the road, and if so, whether that duty had been breached, causing the appellant's loss. Specifically, the court had to consider the principles of negligence in the context of public authorities undertaking public works, and the extent to which such authorities could be held liable for economic loss arising from their planning decisions.

The High Court, in a joint judgment, held that the respondent did not owe a duty of care to the appellant in the circumstances. The court reasoned that the respondent's decision-making process in relation to the planning and construction of the road was a policy decision, and that imposing a duty of care in such a context would unduly interfere with the proper functioning of government. The court distinguished between policy decisions and operational decisions, stating that a duty of care might arise in relation to the latter, but not the former. The court applied the principles established in *Anns v Merton London Borough Council* [1978] AC 728, but ultimately found that the facts of this case did not warrant the imposition of a duty of care.

The appeal was dismissed.