Proving Causation Against Third Party Professionals In The Building Industry

The case of Mistrina Pty Ltd v Australian Consulting Engineers Pty Ltd [2020] NSWCA 223 (Mistrina) considers the current state of the law with regard to proving causation where a party claims loss against a third party based on allegations of misleading and deceptive conduct.

In the building and construction industry, the principles enunciated in this case are particularly important in the context of certification of works and reliance on the advice of building and design professionals.

The decision is authority for the propositions that:

1. causation will be proven where the contravening conduct is shown to be a material cause of the loss suffered by the plaintiff; and
2. in the absence of direct evidence, an overwhelming inference that the contravening conduct is a material cause of the loss suffered by the plaintiff will establish causation.