Potts v Beechwood Homes (NSW) Pty Limited [2021] NSWCATCD 143

Potts v Beechwood Homes (NSW) Pty Limited [2021] NSWCATCD 143

The Builder breached the contract by constructing the home 1180mm rather than 1000mm from the southern boundary, but demolition and rebuilding was not reasonable. The Homeowners proved entitlement only to compensation for the drop edge beam because that expenditure was incurred to obtain the 1000mm setback, the loss...

Source-derived case information.

Jurisdiction
Australia
Judgment Date
10 November 2021
Procedural Posture
Building Claim Under the Home Building Act 1989 (nsw) / Final Decision After Hearing
Outcome
Application allowed in part; compensation awarded to the Homeowners in the amount of $25,149.00.
Legal Topics
['breach of Contract' 'defective Building Work' 'measure of Damages' 'remoteness of Damage' 'causation' 'proof of Quantum']
['building and Construction' 'contract Law' 'consumer and Commercial Disputes'] ['breach of Contract' 'defective Building Work' 'measure of Damages' 'remoteness of Damage' 'causation' 'proof of Quantum']

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Procedural Posture

Building Claim Under the Home Building Act 1989 (nsw) / Final Decision After Hearing

Legal Issues

  1. 1 ['Whether the Builder breached the contract by positioning the house 1180mm rather than 1000mm from the southern boundary as shown on the approved plans.' 'What measure of damages applied where demolition and reconstruction was accepted to be unreasonable.' 'Whether the claimed costs for a retaining wall, drop edge beam, shed/carport, diminution in value and relocation were caused by the breach, not too remote, and proved in amount.']

Ratio Decidendi

The Builder breached the contract by constructing the home 1180mm rather than 1000mm from the southern boundary, but demolition and rebuilding was not reasonable. The Homeowners proved entitlement only to compensation for the drop edge beam because that expenditure was incurred to obtain the 1000mm setback, the loss was within the parties' contemplation, and the available evidence supported a net amount of $25,149.00. The claims for the retaining wall, shed/carport, diminution in value and relocation costs were disallowed because causation, remoteness, expert proof or quantum were not sufficiently established.

Court Disposition

Application allowed in part; compensation awarded to the Homeowners in the amount of $25,149.00.

Orders

  • ['Beechwood Homes (NSW) Pty Limited is to pay to Rebecca Potts & Daniel Potts the sum of $25,149.00 on or before 9 December 2021.']