Duty of Care and the "Salient Features" Test

The NSW Court of Appeal decision in Makawe Pty Limited v Randwick City Council [2009] NSWCA 412 confirms that in cases of a novel relationship, the duty of care is to be determined according to a 'salient features' test. The decision also deals with the question of what constitutes pure economic loss and raises the possibility of a new interpretation of section 44 of the Civil Liability Act 2002 (NSW).

Key points:

• A duty of care is unlikely to be imposed where there is no connection between the parties.
• In such cases, a 'salient features' test is to be employed.
• Structural defects in construction causing economic loss with nothing more is mere economic loss.

Facts