Todd Hadley Pty Limited v Lake Maintenance (NSW) Pty Ltd (No 2) [2020] NSWCA 81

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Todd Hadley Pty Limited v Lake Maintenance (NSW) Pty Ltd (No 2) [2020] NSWCA 81 Hearing dates: 16 March 2020 Date of orders: 30 April 2020 Decision date: 30 April 2020 Before: Bell P at [1]; Basten JA at [91]; Macfarlan JA at [92] Decision: 1. Answer the separate question: "Did the plaintiff sustain loss or damage for the purpose of its claims against the defendant by the time of entering into the contract for the sale of the Property on 23 May 2012 with the consequence that the plaintiff's claims against the defendant are statute barred?" "Yes". 2. Order that Lake Maintenance (NSW) Pty Ltd pay Todd Hadley Pty Limited's costs of the hearing of the separate question. 3. Dismiss the proceedings with costs. 4. Order 3 be stayed for 14 days to permit Lake Maintenance (NSW) Pty Ltd to seek to vary order 3, if so advised. Catchwords: TORTS – Professional negligence – valuers – duty of care – valuation prepared for mortgage security purposes – where mortgage property sold for significantly less than valuation – accrual of cause of action – whether cause of action against valuer for negligent valuation accrues by no later than sale of mortgaged property or only when it becomes reasonably ascertainable that lender will not be able to recover from mortgagor under personal covenant. LIMITATION OF ACTIONS – Professional negligence – valuer – valuation obtained for mortgage security purposes – whether lender sustained loss or damage for the purpose of its claims against the valuer by the time of entering into contract for sale of mortgaged property or only when it became reasonably ascertainable that shortfall on loan secured by mortgage could not be recovered from borrower.