Proctor : February 2018
21 PROCTOR | February 2018 In Principal Properties Pty Ltd v Brisbane Broncos Leagues Club Limited  QCA 254,the Queensland Court of Appeal overturned a Supreme Court decision, awarding damages for loss of commercial opportunity when there was only a slim chance of a profit. This case provides timely guidance on how to measure the value of a commercial opportunity. It is a warning to anyone advising about the performance of a development contract or call option, as the repudiating party might be liable to pay damages, even if there was only a slight chance the other party would make a profit. The facts The case involved a call option deed for Principal Properties (the appellant) to buy land from the Brisbane Broncos Leagues Club (the respondent) within three years for $1 million. This option to purchase was contingent on the appellant obtaining a development permit for the planned construction on the land. It was found at first instance, and not challenged on appeal, that the respondent had repudiated the contract, entitling the appellant to terminate. The issue on appeal was contained to the question of damages alone. Bucking Broncos Court overturns $100 damages decision for loss of commercial opportunity Case note Brisbane Broncos Leagues Club Limited has felt the pain of an off-field loss – in Queensland’s Court of Appeal. Report by Janelle Payne.