Kazzi v KR Properties Global Pty Ltd t/as AK Properties Group [2024] NSWCA 143

Kazzi v KR Properties Global Pty Ltd t/as AK Properties Group [2024] NSWCA 143

The Owners advanced an independent claim against Mr Kazzi for breach of the statutory duty of care under s 37 of the Design and Building Practitioners Act 2020 (NSW). As nominated supervisor with substantive control over the works, Mr Kazzi breached that duty by decisions as to the progress and manner of construction that produced the defects. The primary judge erred in rejecting Mr Mahedy's evidence on rectification costs because, read with his close project management involvement and the schedules and invoices, it provided a sufficient and robust basis for assessing loss. The Owners also squarely advanced their Hungerfords interest claim against Mr Kazzi. His negligence materially...

Jurisdiction
Australia
Judgment Date
07 June 2024
Procedural Posture
Appeal and Cross Appeal Concerning Negligence, Statutory Duty of Care, Building Defects and Damages / Court of Appeal From Supreme Court of New South Wales, Equity – Technology and Construction List, Decision of Stevenson J Dated 15 August 2023
Outcome
Appeal dismissed with costs; cross-appeal allowed; judgment entered for the cross-appellants against Mr Kazzi in the sum of $918,545.46 with interest.
Legal Topics
['statutory Duty of Care Under S 37 of the Design and Building Practitioners Act 2020 (nsw)' 'nominated Supervisor Liability' 'defective Building Works' 'rectification Costs' 'hungerfords Interest' 'causation Where Delay Resulted From Multiple Conjunctive Causal Factors' 'assessment of Damages']
['torts' 'negligence' 'building and Construction Law' 'civil Procedure'] ['statutory Duty of Care Under S 37 of the Design and Building Practitioners Act 2020 (nsw)' 'nominated Supervisor Liability' 'defective Building Works' 'rectification Costs' 'hungerfords Interest' 'causation Where Delay Resulted From Multiple Conjunctive Causal Factors' 'assessment of Damages']

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Procedural Posture

Appeal and Cross Appeal Concerning Negligence, Statutory Duty of Care, Building Defects and Damages / Court of Appeal From Supreme Court of New South Wales, Equity – Technology and Construction List, Decision of Stevenson J Dated 15 August 2023

Legal Issues

  1. 1 ['Whether the Owners had articulated and advanced a claim for Hungerfords interest against Mr Kazzi in respect of defects B2 and B10.' 'Whether Mr Kazzi breached the statutory duty of care under s 37 of the Design and Building Practitioners Act 2020 (NSW) in respect of the pleaded defects.' "Whether the primary judge erred in rejecting Mr Mahedy's evidence as a basis for assessing rectification costs." 'Whether Hungerfords interest should run from 4 July 2017, the contractual date for practical completion, rather than from 20 March 2019.' "Whether concurrent causes of delay, including outstanding fire safety works, negatived causation between Mr Kazzi's negligence and the Owners' interest loss."]

Ratio Decidendi

The Owners advanced an independent claim against Mr Kazzi for breach of the statutory duty of care under s 37 of the Design and Building Practitioners Act 2020 (NSW). As nominated supervisor with substantive control over the works, Mr Kazzi breached that duty by decisions as to the progress and manner of construction that produced the defects. The primary judge erred in rejecting Mr Mahedy's evidence on rectification costs because, read with his close project management involvement and the schedules and invoices, it provided a sufficient and robust basis for assessing loss. The Owners also squarely advanced their Hungerfords interest claim against Mr Kazzi. His negligence materially...

Court Disposition

Appeal dismissed with costs; cross-appeal allowed; judgment entered for the cross-appellants against Mr Kazzi in the sum of $918,545.46 with interest.

Orders

  • ['Pursuant to s 64 of the Civil Procedure Act 2005 (NSW), order that the name of the second respondent and second cross-appellant be amended to Calm Properties Pty Ltd (ACN 602 073 343) ATF Calm Properties Unit Trust (ABN 19 756 796 114) t/as AK Properties Group (ABN 62 971 068 965).' 'The appeal is dismissed with...