State of Queensland v Bank of Queensland and Anor

The State of Queensland (the appellant) brought proceedings against the Bank of Queensland and an individual (the respondents) concerning a dispute over a property development. The matter proceeded to the High Court of Australia.

The High Court was required to determine whether the appellant had breached its duty of care to the respondents in relation to the development, and if so, whether any such breach caused the loss claimed by the respondents. A further issue concerned the application of the rule in *Clayton's Case* to the accounts held by the respondents.

The Court considered the principles of negligence and the duty of care owed by a government entity in the context of economic loss. It examined the causal link between the appellant's actions and the respondents' alleged losses, and the application of *Clayton's Case* to determine the order in which funds were drawn from mixed accounts. The Court ultimately found that the appellant had not breached its duty of care and that the rule in *Clayton's Case* did not apply in the manner contended by the appellant.

The High Court allowed the appeal, setting aside the orders of the lower court and entering judgment for the appellant.