Tugvale Pty Limited v Commonwealth Bank of Australia

Tugvale Pty Limited (the plaintiff) brought proceedings against the Commonwealth Bank of Australia (the defendant) in the Supreme Court of New South Wales, Court of Appeal. The dispute concerned the defendant's alleged breach of a duty of care owed to the plaintiff in relation to the provision of financial advice.

The central legal issue before the Court of Appeal was whether the Commonwealth Bank owed a duty of care to Tugvale Pty Limited in providing financial advice, and if so, whether that duty had been breached. This involved considering the nature of the relationship between the parties and the scope of any such duty.

The Court of Appeal found that the Commonwealth Bank did owe a duty of care to Tugvale Pty Limited. The Court reasoned that the bank, by holding itself out as having expertise in financial matters and by providing advice to the plaintiff, had created a relationship of reliance. This reliance, coupled with the bank's knowledge of the plaintiff's financial position and objectives, gave rise to a duty to exercise reasonable care and skill in the provision of that advice. The Court determined that the bank had breached this duty.

The Court of Appeal allowed the appeal, setting aside the judgment of the primary judge and remitting the matter for assessment of damages.