Morris v Leaney

[2022] NSWCA 95

NSW Court of Appeal

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Interrogate

Catchwords

1. Professional Negligence
2. › Architect
3. › Duty to advise on likelihood of achieving client's budget
4. › Breach of contractual and tortious duty
5. › Mode of performance of duty to advise
6. › Whether architect could discharge duty by warning of inability to estimate and advising client to obtain estimate from qualified professional
7. › Whether factual causation established
8. › Civil Liability Act 2002 (NSW), s 5D(1)(a)
1. Damages
2. › No transaction case
3. › Professional negligence
4. › Negligent estimate of construction costs
5. › Where cost of construction exceeds accretion in property value
6. › Whether nominal damages appropriate
7. › Measure of damages where owner would not have undertaken renovations but for breach
1. Damages
2. › Breach of contract
3. › Mode of performance least onerous to defendant
4. › Where professional adviser could discharge duty by proffering advice or disclaiming ability and referring client elsewhere
5. › Whether least onerous mode of performance highly unlikely to have been selected

Quick Take

A professional sued for failure to advise on costs may discharge their duty by warning of inability to estimate and advising the client to obtain an independent estimate, with damages assessed on the basis of this least onerous mode of performance unless it was highly unlikely to have been selected.