Cases - Kooragang Investments Pty Ltd v Richardson & Wrench Ltd

Record details

Name
Kooragang Investments Pty Ltd v Richardson & Wrench Ltd
Date
[1982]
Citation
AC 716
Keywords
Estate agency
Summary

The defendant firm of valuers instructed their staff not to do any work for a certain client because of unpaid valuation fees. In blatant contravention of this order, an employee carried out valuations at the offices of the client. Two of these were for the plaintiffs. The valuations were typed on the defendant firm's headed paper and the employee signed in the firm's name. (He had authority to do this for the firm's clients.) The valuations were negligent, and the plaintiff brought an action against the firm.

The Judicial Committee of the Privy Council held that the employee had neither actual nor ostensible authority to undertake the valuations. The plaintiffs had no dealing with him and did not know of his existence or rely on his authority as a valuer. Although valuation was a class of act which the employee could perform on behalf of his employer, it did not follow that the employer should assume responsibility for every valuation made by the employee unconnected with the employer's business and in the sole interest of the employee. That would be introducing into the law of agency a principle equivalent to strict liability.