ARTICLE · 16 APRIL 2007

Professional Consultants Warned Of Reputation Risk Through Misuse Of Reports

Hunt & Hunt

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The High Court recently refused an application for leave to appeal a Full Federal Court decision in a case regarding vendor liability. This ruling has significant implications for professional consultants and the way the reports they prepare for their clients are used.

AustraliaStrategy

Maureen Peatman

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The High Court recently refused an application for leave to appeal a Full Federal Court decision in a case regarding vendor liability. This ruling has significant implications for professional consultants and the way the reports they prepare for their clients are used.

The case demonstrated how considerable reputational damage can be caused to consultants whose reports are misused, or used out of context, in legal proceedings.

In this case, environmental consultants Environmental & Earth Sciences (EES) had been found liable for damages of $2.1 million plus costs because of two reports prepared for its client, Caltex, regarding the validation and partial remediation of two plots of land in Chatswood on Sydney’s North Shore.

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