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ARTICLE · 10 SEPTEMBER 2018

No duty of care owed…. This time

Kott Gunning
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When potential purchasers could rely on a planning certificate, local governments are likely to owe them a duty of care.

AustraliaReal Estate and Construction
Philip Mavor
Philip Mavor
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The Queensland Supreme Court of Appeal in Central Highlands Regional Council v Geju Pty Ltd [2018] QCA 38(Central Highlands) has held that a Council had no liability to a third party purchaser (Geju Pty Ltd (Geju)) who relied on a limited planning and development certificate obtained by the vendor which misrepresented the zoning of the property

Facts

The Central Highlands case was an appeal by the Council against a judgement in the Queensland Supreme Court that the Council pay $852,205.50 in damages for loss sustained by Geju in purchasing land (Lot 70) in reliance upon a negligent misrepresentation in a limited planning and development certificate.

The certificate was issued by the Council to the owner of Lot 70. Four months later Geju, in reliance on the certificate, purchased Lot 70.

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