Steedman v Baulkham Hills Council [No 3]

Steedman and another (the plaintiffs) brought proceedings against Baulkham Hills Council (the defendant) in the Supreme Court of New South Wales, Court of Appeal. The dispute concerned the Council's alleged negligence in approving a development application for a shopping centre, which the plaintiffs claimed caused them loss.

The primary legal issue before the Court of Appeal was whether the Council owed a duty of care to the plaintiffs in exercising its statutory power to approve development applications, and if so, whether that duty had been breached. The Court also considered the principles of statutory immunity and the extent to which a public authority could be held liable for economic loss arising from its administrative decisions.

The Court of Appeal, applying established principles of negligence and statutory interpretation, found that the Council did not owe a duty of care to the plaintiffs in this instance. It held that the Council's functions in approving development applications were of a policy and operational nature, and that imposing a duty of care in such circumstances would unduly interfere with the exercise of statutory discretion and potentially expose public authorities to indeterminate liability. The Court distinguished this case from those where a duty of care might arise in relation to the physical execution of works.

The appeal was dismissed, with the Court of Appeal affirming the decision of the primary judge.