6 Sept 2013
APPLETON & ANOR v TAURANGA LAW CA858/2011 [2013] NZCA 420
- Citation
- [2013] 3 NZLR 777
- Court
- Court of Appeal
The Court of Appeal held Tauranga Law breached its duty by failing to give adequate advice about the true nature and magnitude of the risks (including that Rockfort did not own the land, the deposit was released to Blue Chip with no trust protection, lack of specifications and developer obligations, and the right to cancel under RMA s225). Proper advice would have led the appellant to withdraw and not pay the deposit; therefore the negligent advice caused the loss. Appeal allowed and judgment to be entered for the appellants for the claimed amount plus interest (excluding general damages).