Belsand Pty Ltd v Bridgeland Securities Ltd & Ors [1995] FCA 360

Belsand Pty Ltd v Bridgeland Securities Ltd & Ors [1995] FCA 360

Phillips McSweeney owed and breached a duty of care to Belsand both in operation of the monthly statement system and by failing to act upon information about the Estate Mortgage investment after being instructed to withdraw funds. This breach caused loss to Belsand. Phillips McSweeney also breached contract by failing to provide monthly statements, and there was no waiver or acquiescence by Belsand. The negligent acts were causative of the total loss of $520,000, with the breach of contract specifically causing the loss of $20,000.

Parties
Applicant: Belsand Pty Ltd; First Respondent: Bridgeland Securities Ltd t/as Bridgelands Financial Service; Second Respondent: Paul Frederick Turner; Second Respondent: Bruce William Phillips; Second Respondent: John William Beale; Second Respondent: Kevin William English; Second Respondent: Brian Albert McSweeney
Jurisdiction
Australia
Judgment Date
02 June 1995
Procedural Posture
Claim for Damages (tort and Contract) / Judgment After Trial (reasons for Judgment)
Outcome
Liability found against Phillips McSweeney for negligence and breach of contract.
Legal Topics
Negligence, Duty of Care, Breach of Duty, Proximity, Investment Advice, Accountant Client Relationship, Causation, Damages, Waiver, Acquiescence
Tort Contract Negligence Duty of Care Breach of Duty Proximity Investment Advice Accountant Client Relationship +4 more

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Parties

Belsand Pty Ltd

Applicant

Bridgeland Securities Ltd t/as Bridgelands Financial Service

First Respondent

Paul Frederick Turner

Second Respondent

Bruce William Phillips

Second Respondent

John William Beale

Second Respondent

Kevin William English

Second Respondent

Brian Albert McSweeney

Second Respondent

Procedural Posture

Claim for Damages (tort and Contract) / Judgment After Trial (reasons for Judgment)

Legal Issues

  1. 1 Whether Phillips McSweeney (accountants) owed and breached a duty of care to Belsand regarding investment advice and the statement system; whether there was a proximate relationship giving rise to a duty; whether breach of contract occurred by failing to provide monthly statements; whether these breaches caused loss; whether delay in complaint constituted waiver or acquiescence.

Ratio Decidendi

Phillips McSweeney owed and breached a duty of care to Belsand both in operation of the monthly statement system and by failing to act upon information about the Estate Mortgage investment after being instructed to withdraw funds. This breach caused loss to Belsand. Phillips McSweeney also breached contract by failing to provide monthly statements, and there was no waiver or acquiescence by Belsand. The negligent acts were causative of the total loss of $520,000, with the breach of contract specifically causing the loss of $20,000.

Court Disposition

Liability found against Phillips McSweeney for negligence and breach of contract.