The scope of liability inquiry under Civil Liability Act 2002 (NSW), s 5D(1)(b) extends beyond traditional causation to encompass remoteness, intervening causes, and foreseeability, and its content may vary according to the cause of action. Where claims in tort and contract produce differing outcomes on remoteness, the differing result requires careful scrutiny and exceptional justification. Litigation costs incurred by a plaintiff as a result of a third party's breach are recoverable only to the extent that the ongoing litigation remains causally connected to the breach; where the litigation becomes driven by disputes unrelated to the breach, the causal chain is broken.
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