Votraint No 1088 Pty Ltd v The Commonwealth of Australia

Votraint No 1088 Pty Ltd (the appellant) sought leave to amend its statement of claim in proceedings against the Commonwealth of Australia (the respondent). The dispute arose from a conveyancing transaction. The appeal was heard in the Court of Appeal of New South Wales.

The primary legal issue before the Court of Appeal was whether the proposed amended pleading was so manifestly flawed that it was doomed to fail. This involved considering whether the appellant had established a cause of action in negligence, specifically whether there was an implied warranty to prepare answers to requisitions with reasonable care and skill, and whether a duty of care in negligence could arise from a vendor/purchaser relationship. A further consideration was the necessity of identifying particular persons who knew an answer provided was false.

The Court of Appeal determined that the proposed amended pleading was not doomed to fail. It reasoned that a vendor's solicitor owes a duty of care to the purchaser in relation to the preparation of answers to requisitions, and that this duty encompasses the exercise of reasonable care and skill. The Court found that the appellant's proposed pleading sufficiently articulated a claim that the respondent had breached this duty. The Court also considered that the pleading did not necessarily require the identification of specific individuals who knew an answer was false, as the duty of care could be breached by the entity itself.

The appeal was upheld.