Valcorp Australia Pty Ltd v Angas Securities Ltd

Valcorp Australia Pty Ltd appealed against the primary judge’s decision regarding contributory negligence and the award of damages for consequential loss, while the respondents cross-appealed from the primary judge’s decision that the damages awarded to them should be reduced by 25% on account of their contributory negligence. The case involved a dispute over the valuation of property, where financiers had made advances in reliance on a valuation. The valuer’s conduct fell below the standard of a reasonably competent valuer, and the financiers did not carry out adequate inquiries as to whether the borrowers could service the loans. The borrowers defaulted within two months of the loans being made. The court had to determine the apportionment of responsibility for the loss between the valuer and each lender, and whether the evidence discharged the onus of proof.

The court held that the valuer’s conduct fell below the standard of a reasonably competent valuer, and that the financiers did not carry out adequate inquiries as to whether the borrowers could service the loans. The court found that the evidence discharged the onus of proof, and that the loss should be apportioned between the valuer and the financiers. The court held that the primary judge erred in finding that the financiers were not contributorily negligent, and that the damages awarded to the respondents should be reduced by 25% on account of their contributory negligence. The appeal was allowed in part, but was otherwise dismissed. The orders made by Besanko J on 17 March 2011 were set aside, and the parties were required to provide a minute of orders which gave effect to the reasons of the Court within 7 days. The parties were also required to file and serve submissions not exceeding 4 pages on the question of costs within 7 days.