Shire of Frankston and Hastings v Cohen [1960] HCA 6

Shire of Frankston and Hastings v Cohen [1960] HCA 6

By majority, the High Court held that Cohen's acceptance of appointment as auditor for the municipality and his entry upon the skilled task of auditing its accounts created a relationship with the municipality which required him to exercise reasonable care and skill. The audit was for the benefit and protection of the municipality as well as any public purpose, and the statutory quasi-judicial powers conferred on the auditor did not transform the negligent performance of professional audit work into an immune quasi-judicial act. The pleading therefore disclosed an arguable cause of action, Smith J.'s contrary order was discharged, and Cohen's summons was dismissed.

Jurisdiction
Australia
Procedural Posture
Appeal by Leave / High Court Appeal From an Order of Smith J. in Chambers in the Supreme Court of Victoria Determining, on a Summons Before Defence, That the Statement of Claim Disclosed No Reasonable Cause of Action Against Cohen.
Outcome
Appeal allowed with costs.
Legal Topics
['duty of Care Owed by Municipal Auditor' 'municipal Accounts and Audit' 'quasi Judicial Powers' 'strike Out for No Reasonable Cause of Action']
['tort Law' 'professional Negligence' 'local Government Law' 'statutory Interpretation'] ['duty of Care Owed by Municipal Auditor' 'municipal Accounts and Audit' 'quasi Judicial Powers' 'strike Out for No Reasonable Cause of Action']

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Procedural Posture

Appeal by Leave / High Court Appeal From an Order of Smith J. in Chambers in the Supreme Court of Victoria Determining, on a Summons Before Defence, That the Statement of Claim Disclosed No Reasonable Cause of Action Against Cohen.

Legal Issues

  1. 1 ['Whether an auditor appointed by the Governor in Council under the Local Government Act 1946 Vict. as auditor for a municipality owes the municipality a duty to exercise reasonable care and skill in auditing its accounts.' "Whether the auditor's statutory appointment and quasi-judicial powers meant that he owed no duty of care to the municipality and could be liable only for acts done mala fide." 'Whether the statement of claim against Cohen disclosed a reasonable cause of action.']

Ratio Decidendi

By majority, the High Court held that Cohen's acceptance of appointment as auditor for the municipality and his entry upon the skilled task of auditing its accounts created a relationship with the municipality which required him to exercise reasonable care and skill. The audit was for the benefit and protection of the municipality as well as any public purpose, and the statutory quasi-judicial powers conferred on the auditor did not transform the negligent performance of professional audit work into an immune quasi-judicial act. The pleading therefore disclosed an arguable cause of action, Smith J.'s contrary order was discharged, and Cohen's summons was dismissed.

Court Disposition

Appeal allowed with costs.

Orders

  • ['Appeal allowed with costs.' 'Order of Smith J. discharged.' 'In lieu thereof order that the summons be dismissed with costs.']