Timms v Commonwealth Bank of Australia

The appeal in *Timms v Commonwealth Bank of Australia* concerned allegations of negligent misrepresentation and misleading or deceptive conduct, brought by the appellant, Mr Timms, against the respondent, the Commonwealth Bank of Australia. The dispute arose from the Bank's conduct in relation to credit facilities provided to Mr Timms. The appeal was heard by Handley, Beazley and Santow JJA in the Court of Appeal of New South Wales.

The central legal issues before the Court of Appeal were whether the Bank had made negligent misrepresentations to Mr Timms, and whether its conduct, including by silence, amounted to misleading or deceptive conduct in contravention of consumer protection legislation. A further issue was whether adverse credit findings made against Mr Timms were well-based.

The Court of Appeal found that the Bank had engaged in misleading or deceptive conduct. It determined that the Bank's conduct, particularly its silence regarding certain matters, created a misleading impression. The Court applied principles relating to the duty of care in providing financial advice and the prohibition of misleading or deceptive conduct, finding that the Bank had breached these obligations. The adverse credit findings were also found not to be well-based.

The appeal was allowed.