This case study analyzes a legal dispute between Jack Smith, a real estate developer, and Dandenong Council. Smith purchased land for $2 million to build townhouses, relying on a council certificate that failed to disclose a road widening proposal. The proposal significantly reduced the land's value. The analysis employs the IRAC method to examine six key issues: the council's duty of care, breach of that duty, liability for Smith's economic loss, and the applicability of contributory and voluntary negligence defenses. The analysis concludes that the council owed Smith a duty of care, breached that duty, and is liable for Smith's economic loss. However, the council could potentially leverage defenses based on Smith's awareness of the road widening proposal. The case study references relevant case law and legal principles to support its conclusions, including the principles of negligence established in Donoghue v Stevenson and the concept of economic loss as seen in Caltex Oil (Australia) Pty. Ltd. v. The Dredge "Willemstad".
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