Alan Hayes v Paul McDermott [2014] NSWCATCD 141

Alan Hayes v Paul McDermott [2014] NSWCATCD 141

The applicant, having already undertaken substantial rectification work to remedy defects caused by the respondent's breach of statutory warranties under the Home Building Act 1989 s 18B, is entitled to recover the reasonable costs of such rectification, but not the cost of demolition and total reconstruction, as the latter would be neither necessary nor reasonable in the circumstances. The allowable damages therefore reflect the actual costs incurred and necessary further rectification, less any sums owing to the respondent for unpaid contract works.

Parties
Applicant: Alan Hayes; Respondent: Paul McDermott
Jurisdiction
Australia
Judgment Date
25 July 2014
Procedural Posture
Home Building Dispute / Final Determination
Outcome
The respondent is to pay the applicant the sum of $7,963.00 within 30 days of the order date.
Legal Topics
Statutory Warranties, Measure of Damages, Rectification Vs. Replacement, Home Building Act 1989, Contractual Obligations
Building and Construction Law Statutory Warranties Measure of Damages Rectification Vs. Replacement Home Building Act 1989 Contractual Obligations

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 3 Party arguments 2 Amounts and remedies 6
Sign in to unlock

Parties

Alan Hayes

Applicant

Paul McDermott

Respondent

Procedural Posture

Home Building Dispute / Final Determination

Legal Issues

  1. 1 Whether the respondent breached statutory warranties under s 18B of the Home Building Act 1989 by failing to perform building works in a proper and workmanlike manner
  2. 2 Whether the applicant is entitled to the cost of rectification or full demolition and reconstruction as damages
  3. 3 Appropriate measure and quantum of damages where rectification work has already been undertaken

Ratio Decidendi

The applicant, having already undertaken substantial rectification work to remedy defects caused by the respondent's breach of statutory warranties under the Home Building Act 1989 s 18B, is entitled to recover the reasonable costs of such rectification, but not the cost of demolition and total reconstruction, as the latter would be neither necessary nor reasonable in the circumstances. The allowable damages therefore reflect the actual costs incurred and necessary further rectification, less any sums owing to the respondent for unpaid contract works.

Court Disposition

The respondent is to pay the applicant the sum of $7,963.00 within 30 days of the order date.

Orders

  • The respondent is to pay the applicant the sum of $7,963.00 within 30 days of this Order.
  • No order as to the applicant's costs.