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ARTICLE · 16 JUNE 2009

Thrills, Spills And Litigation: Are Development Applications A TPA-Free Zone?

Clayton Utz
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In the absence of a commercial relationship between the parties, the lodgement of a development application is not conduct "in trade and commerce" and is therefore not capable of being misleading and deceptive under the Trade Practices Act.

AustraliaAntitrust/Competition Law
Peter Briggs
Peter Briggs
Darren Bick
Darren Bick
Rachel Roberts
Rachel Roberts
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Key Points:
In the absence of a commercial relationship between the parties, the lodgement of a development application is not conduct "in trade and commerce" and is therefore not capable of being misleading and deceptive under the Trade Practices Act. Developers do not owe purchasers or developers of adjoining land a duty of care to avoid economic loss occasioned by inaccurate statements in development applications.

The NSW Supreme Court's long-awaited decision in Street & 7 Ors v Luna Park Sydney Pty Limited & 3 Ors [2009] NSWSC 1 has important implications for all developers and property owners.

Background To The Litigation

Sydney's famous Luna Park sits on the harbour in a prime position close to the Harbour Bridge. In its unique harbourside location, Luna Park is placed in close proximity to highly sought-after real estate, both residential and commercial.

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