The Owners of Strata Plan 76888 v Walker Group Constructions Pty Ltd [2016] NSWSC 541

The Owners of Strata Plan 76888 v Walker Group Constructions Pty Ltd [2016] NSWSC 541

Damage for breach of statutory warranties in building contracts is measured by the cost of achieving compliance with the Building Code of Australia performance requirements; where experts agree alternative solutions are appropriate and sufficient under the BCA, rectification by those means is reasonable, and damages...

Source-derived case information.

Parties
Plaintiff: The Owners of Strata Plan 76888; First Defendant: Walker Group Constructions Pty Ltd; Second Defendant: Walker Corporation Pty Ltd
Jurisdiction
Australia
Judgment Date
02 May 2016
Procedural Posture
Equity / Principal Judgment After Referee's Report, Adoption Proceedings and Cross Notices of Motion
Outcome
Judgment for the plaintiff against the first and second defendants; Referee's Report adopted with specified exceptions; damages and interest awarded; cross-motions dismissed.
Legal Topics
Statutory Warranties, Damages for Defective Building Work, Building Code Compliance, Referee's Report Adoption, Alternative Solutions Under Building Code, Role of Owners Corporation
Building and Construction Contract Law Strata Title Statutory Warranties Damages for Defective Building Work Building Code Compliance Referee's Report Adoption Alternative Solutions Under Building Code +1 more

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Parties

The Owners of Strata Plan 76888

Plaintiff

Walker Group Constructions Pty Ltd

First Defendant

Walker Corporation Pty Ltd

Second Defendant

Procedural Posture

Equity / Principal Judgment After Referee's Report, Adoption Proceedings and Cross Notices of Motion

Legal Issues

  1. 1 Whether building work breached statutory warranties under s 18B of Home Building Act 1989 (NSW)
  2. 2 Whether rectification by alternative solutions achieves contractual conformity and compliance with the Building Code of Australia
  3. 3 Whether damages should reflect the cost of pursuing alternative solutions for non-compliant works

Ratio Decidendi

Damage for breach of statutory warranties in building contracts is measured by the cost of achieving compliance with the Building Code of Australia performance requirements; where experts agree alternative solutions are appropriate and sufficient under the BCA, rectification by those means is reasonable, and damages are to be assessed accordingly. The Referee's report was properly adopted, except as to the GST allowance and unsupported contingencies for rejection of alternative solutions.

Court Disposition

Judgment for the plaintiff against the first and second defendants; Referee's Report adopted with specified exceptions; damages and interest awarded; cross-motions dismissed.

Orders

  • Order that the Referee's Report dated 21 August 2015, except for paragraph [357], be adopted subject to findings at [59] and explanation of [332]-[337] in the reasons.
  • Dismiss the plaintiff's notice of motion filed 24 September 2015.