St George Bank Ltd v Quinerts Pty Ltd

St George Bank Ltd initiated proceedings against Quinerts Pty Ltd, a firm of valuers, in the Supreme Court of New South Wales. The bank alleged that Quinerts negligently overvalued mortgaged premises, leading to an overestimation of the loan amount secured against the property. This overvaluation caused the bank to lend more than it should have, resulting in financial losses when the borrower defaulted. The bank sought damages for the valuer's breach of contract and professional negligence.

The court had to determine several legal issues, including the appropriate measure of damages to compensate the bank for the negligent valuation, whether the bank would have entered into an alternative transaction, and the extent to which the bank's own negligence contributed to the loss. The court also considered the application of Part IVAA of the Wrongs Act 1958 to limit the valuer's liability and whether the valuer and the borrower were concurrent wrongdoers.

The Supreme Court of New South Wales held that Quinerts was liable for the negligent overvaluation and that the appropriate measure of damages was to place the bank in the position it would have been in if the valuation had been competently performed. The court found that the bank would not have entered into an alternative transaction and that there was no loss of opportunity to do so. The court also held that the bank's own negligence did not contribute to the loss, and therefore, the valuer's liability was not limited by Part IVAA of the Wrongs Act 1958. The court further found that the valuer and the borrower were not concurrent wrongdoers.

In its judgment, the court allowed the appeal by St George Bank Ltd and dismissed the cross-appeal by Quinerts Pty Ltd. The court set aside the previous judgment and ordered Quinerts to pay the bank $173,638.96 in damages, plus interest. The court also ordered Quinerts to pay the bank's costs of the proceeding below and the appeal.