Aghajanian v Stanley Thompson Valuers Pty Ltd [1999] NSWSC 1154

New South Wales Supreme Court CITATION : Aghajanian v Stanley Thompson Valuers Pty Ltd [1999] NSWSC 1154 CURRENT JURISDICTION : Equity FILE NUMBER(S) : 4779/91 HEARING DATE(S) : 12 - 16 May, 19 - 21 May, 23 May, 22 August, 1 - 5 September and 28 October 1997, 2 - 5 February, 18, 19 & 26 May, 12 November 1998 JUDGMENT DATE : 17 December 1999

Yourik Aghajanian (P1) Emmik Aghajanian (P2) Nshan Pty Limited (P3) PARTIES : Alice Aghajanian (P4) Ara Aghajanian (P5) Shakeh Arakelian (P6) Stanley Thompson Valuers Pty Limited (D) JUDGMENT OF : Hamilton J

COUNSEL : M J Slattery QC and G M Colman; later Stuart Donaldson (P1-6) S Kalfas and S Flannigan (D) SOLICITORS : Tress Cocks & Maddox (P1-6) Phillips Fox (D) CATCHWORDS : DAMAGES [22] - Measure and remoteness of damages in actions for tort - Remoteness and causation - Proof of causation - Whether negligence in preparation of valuation for financier causative of damage to purchaser of real property; REAL PROPERTY [222] - Valuation of land - Valuers - Duty of care - Valuation commissioned by financier - Whether duty of care owed to intending purchaser - Breach of duty - Danger of hindsight infecting valuation evidence; TRADE AND COMMERCE [92] - Trade practices and related matters - Consumer protection - Misleading or deceptive conduct - Particular classes of conduct - Real estate transactions - Valuer - Valuation alleged to be wrong and to constitute misleading or deceptive conduct ACTS CITED : Trade Practices Act 1974 (Cth), s 52 Amadio Pty Ltd v Henderson (1998) 81 FCR 149 Australian Breeders Co-Operative Society Ltd v Jones (1997) 150 ALR 488 Cash Resources Australia Pty Ltd v Ken Gaetjens Real Estate Pty Ltd (1994) Aust Torts Reports par 81-276 Chappel v Hart (1998) 72 ALJR 1344 Esanda Finance Corporation Limited v Peat Marwick Hungerfords (1997) 188 CLR 241 Global Sportsman Pty Ltd v Mirror Newspapers Pty Ltd (1984) 2 FCR 82 CASES CITED : Kenney v Hall, Pain & Foster [1976] EGD 629 March v Stramare (E & M H) Pty Limited (1991) 171 CLR 506 MGICA (1992) Ltd v Kenny & Good Pty Ltd (1996) 140 ALR 313 RAIA Insurance Brokers Limited v FAI General Insurance Co Limited (1993) 41 FCR 164 Rogers v Whittaker (1992) 175 CLR 479 Smith v Eric S Bush; Harris v Wyre Forest District Council [1990] 1 AC 831 Ta Ho Ma Pty Ltd v Allen [1999] NSWCA 202 Taco Company Australia Inc v Taco Bell Pty Ltd (1982) 42 ALR 177 DECISION : Judgment for the defendant