The SAAMCO principle, as established in the judgment of the House of Lords (as it was then) in South
Australia Asset Management Corpn v York Montague Ltd [1997] AC 191, provides tha...
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The SAAMCO principle, as established in the judgment of the House of Lords (as it was then) in South
Australia Asset Management Corpn v York Montague Ltd [1997] AC 191, provides that a claimant
must establish not only that the loss for which damages are claimed was caused by the
professional's breach of duty but also that that loss fell within the scope of the duty owed by the
professional. In giving the leading judgment, Lord Hoffman drew a distinction between a duty to
provide information for the purpose of enabling someone else to decide upon a course of action and
a duty to advise someone as to the course of action that they should take. Where the professional
only gives information then they are only liable for the consequences of the information being
wrong. However, where a professional gives a client advice, for example, whether to enter into a
particular transaction at all, then, if the advice is negligent, the professional will be responsible for all
of the consequences of the advice being wrong.