Factually, the doctor's negligence caused the mountaineer's injury, because the mountaineer would not have gone climbing if he knew the true state of his knee. But the doctor is not legally responsible for the mountaineer's injury, because if the doctor's advice had been correct the injury would have occurred anyway. SAAMCO itself was about valuers who had negligently over-stated the value of properties to lenders. The application of the principle was that the valuers were responsible for the losses represented by the difference between the over-stated and true values of the properties. The valuers were not responsible, however, for losses flowing from a decline in the property market. The decision The Court unanimously found that BPE was not legally responsible for Hughes-Holland's losses. The judgment was written by Lord Sumption, who was counsel for one of the valuers in the SAAMCO case. He said the solicitors had been instructed simply to document the transaction and were unaware of the nature of the proposed development and of the discussions between the lender and borrower. In those circumstances, it was not the responsibility of the solicitors to advise the lender on the consequences of the transaction. It might have been different had the lender sought the solicitors' advice on whether to enter into the contract. Take-outs For claimants, the temptation can be to focus too heavily on the fact a duty has been breached. The risks to reputation of exposing the breach can be a strong settlement motivator but, if they are serious about going to trial, claimants need to confront the question of whether the defendant is responsible for the claimed loss. The flip-side for defendants is to impose that discipline on claimants, as doing that effectively can reduce the quantum of acceptable settlement. For professionals, the lesson is to be clear with clients about the scope of your advice or product, and to understand that your risk of liability for negligent work broadly correlates with the scope of that work or advice.
Jeremy Upson Senior Solicitor, Wellington
​Jeremy specialises in litigation and dispute resolution, with experience in commercial and public law disputes.