Park, J.B. & Ors v Allied Mortgage Corporation Ltd & Ors [1995] FCA 462

CATCHWORDS

NEGLIGENCE - duty of care - failure of solicitor to disclose to client information material to decision of client to lend funds on second mortgage for six months - whether solicitor entitled to rely upon valuation of security - valuation admittedly negligently made - apportionment of liability between solicitors and valuer. VALUATION - residual land valuation - appropriateness of valuation based on hypothetical development of land - principles of valuation discussed. Trade Practices Act 1974 (Cth): s52 Fair Trading Act 1987 (NSW): s42 Law Reform (Miscellaneous Provisions) Act 1946 (NSW): s5 Abrahams v Federal Commissioner of Taxation (1944) 70 CLR 23; applied. Spencer v The Commonwealth (1906) 5 CLR 418; applied. Russell v Federal Commissioner of Taxation (1981) 81 ATC 4391; referred to. Turner v Minister of Public Instruction (1956) 95 CLR 245; applied. JAMES BEATTIE PARK & ORS v ALLIED MORTGAGE CORPORATION LIMITED & ORS Nos NG980 of 1992 and NG663 of 1993

CORAM: HILL J PLACE: SYDNEY DATED: 5 JULY 1995

IN THE FEDERAL COURT OF AUSTRALIA ) ) NEW SOUTH WALES DISTRICT REGISTRY ) ) No NG663 of 1993 GENERAL DIVISION ) Matter No NG 980 of 1992 BETWEEN: JAMES BEATTIE PARK First Applicant ELAINE PARK Second Applicant SUE ELLEN REGAN Third Applicant RUBY VIOLET GLADYS POULTON Fourth Applicant AND: ALLIED MORTGAGE CORPORATION LIMITED First Respondent MORTGAGE FINANCE AUSTRALIA (SECURITIES) LIMITED Second Respondent WAHRING HOLDINGS PTY LIMITED Third Respondent DAVID ANTHONY UNDERHILL Fourth Respondent STEPHEN JOHN GOODMAN Fifth Respondent ALEXANDER RM MACINTOSH Sixth Respondent SALLMANNS (NSW) PTY LIMITED Seventh Respondent STEPHEN HOWES Eighth Respondent AND: SALLMANNS (NSW) PTY LIMITED Cross-Claimants AND: TIMOTHY WILLIAM DALEY GERALDINE ANNE DALEY RICHARD MARTYN WOOLNER IAN JAMES ROSS MICHAEL JOHN MILGATE Cross-Respondents Matter No NG663 of 1993 BETWEEN: JAMES BEATTIE PARK First Applicant ELAINE PARK Second Applicant SUE ELLEN REGAN Third Applicant RUBY VIOLET GLADYS POULTON Fourth Applicant