Ta Ho Ma Pty Ltd v Allen

Ta Ho Ma Pty Ltd (the plaintiff) brought proceedings against Allen (the defendant), a valuer, for economic loss allegedly suffered as a result of a negligent valuation. The matter proceeded to the Court of Appeal of New South Wales.

The central legal issues before the Court of Appeal were whether the defendant valuer owed a duty of care to the plaintiff, and if so, whether that duty had been breached. Specifically, the court had to consider whether the valuation provided by the defendant was negligent, and whether the plaintiff had reasonably relied on that valuation, particularly in light of the time that had elapsed since the valuation was made, raising the question of whether the valuation had become "stale".

The court's reasoning focused on the principles of negligence in the context of professional services, particularly the duty of care owed by a valuer. It considered the circumstances under which a duty of care arises and the requirements for establishing a breach of that duty, including the foreseeability of the loss and the reasonableness of the plaintiff's reliance on the valuation. The court examined the evidence to determine if the valuation was indeed negligent and whether the plaintiff's reliance was reasonable given the age of the valuation and any intervening events that might have affected its accuracy.

The appeal was dismissed, and the plaintiff was ordered to pay the defendant's costs.