Negligence and Pure Economic Loss

Darling Downs Foods Pty Ltd v Bovis Lend Lease Pty Ltd & Ors [2010] QSC 409

Allens Arthur Robinson

The Supreme Court of Queensland has followed the High Court and affirmed that the designer or builder of commercial premises owes no duty of care – in respect of pure economic loss arising from defects in those premises – to a person with whom they have no contractual relationship. The relevant test of whether a duty of care to avoid economic loss is owed is a party’s ‘vulnerability’; that is, that party’s inability to protect itself from the consequences of another person’s failure to take reasonable care, either entirely or at least in a way which would cast the consequences of the loss on that other person.

Reproduced with permission of Allens Arthur Robinson and in accordance with their terms of use.

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