Kenny & Good Pty Ltd & Anor v MGICA (1992) Ltd [1997] FCA 743

FEDERAL COURT OF AUSTRALIA DAMAGES - Trade Practices Act 1974 - (Cth) measure of damages - mortgage insurer providing insurance relying on misleading valuation of property - valuation provided for mortgage valuation purposes - default by mortgagor - shortfall after sale of security - mortgage insurer liable to indemnify mortgagee - valuers found liable to insurer by reason of contravention of s 52 of the Trade Practices Act 1974 (Cth) - 'no-transaction case' - whether loss attributable to market fall recoverable - principles governing assessment of damages under s 82 of the Trade Practices Act 1974 (Cth). DAMAGES - breach of duty - measure of damages - mortgage insurer providing insurance relying on negligent valuation of property - valuation provided for mortgage valuation purposes - default by mortgagor - shortfall after sale of security - mortgage insurer liable to indemnify mortgagee - valuers found liable to insurer in tort - 'no-transaction case' - whether loss attributable to market fall recoverable - whether the decision of the House of Lords in Banque Bruxelles Lambert SA v Eagle Star Insurance Co Ltd [1997] AC 191 should be followed - discussion of the principles governing assessment of damages for breach of duty. CAUSATION - negligent over-valuation of property - mortgage insurer relying on valuation in providing mortgage insurance - whether loss due to market fall attributable to negligence of valuers - test to be applied. Trade Practices Act 1974 (Cth), ss 52, 82. Fair Trading Act 1987 (NSW) ss 42, 68. MGICA (1992) Ltd (formerly MGICA Ltd) v Kenny & Good Pty Ltd (1996) 140 ALR 313, upheld. Banque Bruxelles Lambert SA v Eagle Star Insurance Co Ltd [1997] AC 191, not followed. Banque Bruxelles Lambert SA v Eagle Star Insurance Co Ltd [1995] QB 375, discussed. Livingstone v Rawyards Coal Co (1880) 5 App Cas 25, cited. Caparo Industries Pty Ltd v Dickman [1990] 2 AC 605, distinguished. Doyle v Olby (Ironmongers) Ltd [1969] 2 QB 158, cited. Chandler v Crane Christmas & Co [1951] 2 KB 164, cited. Esanda Finance Corporation v Peat Marwick Hungerfords (1997) 142 ALR 750, cited. March v E & M H Stramare Pty Ltd (1991) 171 CLR 506, cited. Gates v City Mutual Life Assurance Society Limited (1986) 160 CLR 1, cited. L Shaddock & Associates Pty Ltd v Parramatta City Council (No 1) (1981) 150 CLR 225, applied. South Australia v Johnson (1982) 42 ALR 161, cited. Gould v Vaggelas (1984) 157 CLR 215, cited. Overseas Tankship (UK) Ltd v Morts Dock & Engineering Co (The Wagon Mound) [1961] AC 388, cited. Richards v Victoria [1969] VR 136, cited. Hill (t/as RF Hill & Associates) v Van Erp (1997) 142 ALR 687, cited. Medlin v State Government Insurance Commission (1995) 182 CLR 1, cited. Chapman v Hearse (1961) 106 CLR 112, cited. Faulkner v Keffalinos (1970) 45 ALJR 80, cited. Wardley Australia Ltd v State of Western Australia (1992) 175 CLR 514, applied. Sellars v Adelaide Petroleum NL (1994) 179 CLR 332, cited. Kizbeau Pty Ltd v W G & B Pty Ltd (1995) 184 CLR 281, cited. Potts v Miller (1940) 64 CLR 282, discussed/distinguished. Smith v New Court Securities Ltd v Citibank NA [1997] AC 254, cited. Toteff v Antonas (1952) 87 CLR 647, cited. Copping v ANZ McCaughan Ltd (Full Court of S Ct/SA, 21 March 1997, unreported), discussed/cited. KENNY & GOOD PTY LIMITED & ANOR v MGICA (1992) LIMITED NG 814 of 1996 Wilcox, Branson & Sackville JJ Sydney 8 August 1997