The Owners - Strata Plan No 66595 v Suncorp Metway Insurance Ltd and B S and J H Bailey Pty Ltd [2014] NSWCATCD 180

The Owners - Strata Plan No 66595 v Suncorp Metway Insurance Ltd and B S and J H Bailey Pty Ltd [2014] NSWCATCD 180

The builder breached the statutory warranty under s 18B(a) of the Home Building Act by failing to perform plumbing work in a proper and workmanlike manner, causing foundation movement and cracking; however, the evidence does not establish a breach under s 18B(c) regarding footing design changes. Only limited underpinning (three piers) to units 1 and 2 is reasonable for structural stabilisation. Liability and rectification extent have been determined, with quantum to be set following directions.

Jurisdiction
Australia
Judgment Date
16 September 2014
Procedural Posture
Civil Tribunal / Principal Judgment, Liability Determined, Quantum to Be Decided
Outcome
Liability established against builder and insurer for general defects and structural stabilisation (three piers); matter listed for directions to determine quantum.
Legal Topics
['statutory Warranties' 'defective Building Work' 'foundation Movement' 'insurance Liability' 'quantum Assessment' 'rectification Method']
['home Building' 'insurance Law' 'building and Construction Law'] ['statutory Warranties' 'defective Building Work' 'foundation Movement' 'insurance Liability' 'quantum Assessment' 'rectification Method']

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Procedural Posture

Civil Tribunal / Principal Judgment, Liability Determined, Quantum to Be Decided

Legal Issues

  1. 1 ['Cause of foundation movement and cracking' "Builder's compliance with statutory warranties under s 18B of Home Building Act" 'Extent of defects attributable to builder' "Insurance liability for builder's breaches" 'Appropriate rectification method and quantum']

Ratio Decidendi

The builder breached the statutory warranty under s 18B(a) of the Home Building Act by failing to perform plumbing work in a proper and workmanlike manner, causing foundation movement and cracking; however, the evidence does not establish a breach under s 18B(c) regarding footing design changes. Only limited underpinning (three piers) to units 1 and 2 is reasonable for structural stabilisation. Liability and rectification extent have been determined, with quantum to be set following directions.

Court Disposition

Liability established against builder and insurer for general defects and structural stabilisation (three piers); matter listed for directions to determine quantum.

Orders

  • ['Matter listed for directions to determine timetable for evidence or agreement on quantum regarding extent of rectification required.' 'Quantum to be assessed based on admitted general defects and three piers underpinning units 1 and 2.' 'Directions for submissions on costs to be made after quantum decision.']