The Owners - Strata Plan No 76674 v Di Blasio Constructions Pty Ltd [2014] NSWSC 1067

The Owners - Strata Plan No 76674 v Di Blasio Constructions Pty Ltd [2014] NSWSC 1067

The Owners Corporation acted reasonably in response to the builder's breach. Despite offers to rectify, the Owners Corporation reasonably lost confidence in the builder due to inadequate responses and failures over time. It was not unreasonable for the Owners Corporation to reject the builder's subsequent offer, nor did it fail to mitigate its loss. Damages for the cost of rectification work are available and awarded.

Jurisdiction
Australia
Judgment Date
11 August 2014
Procedural Posture
Civil / Judgment
Outcome
Judgment for the plaintiff
Legal Topics
['statutory Warranties' 'mitigation of Loss' 'rectification of Defects' 'damages' 'home Building Act 1989 (nsw)']
['building and Construction'] ['statutory Warranties' 'mitigation of Loss' 'rectification of Defects' 'damages' 'home Building Act 1989 (nsw)']

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Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 ['Whether the builder breached statutory warranties under s 18B of the Home Building Act 1989 (NSW)' 'Whether the owner acted reasonably after the breach, including duty to mitigate' "Reasonableness of owner's rejection of builder's later offer to rectify defects" 'Availability of damages for cost of rectification work']

Ratio Decidendi

The Owners Corporation acted reasonably in response to the builder's breach. Despite offers to rectify, the Owners Corporation reasonably lost confidence in the builder due to inadequate responses and failures over time. It was not unreasonable for the Owners Corporation to reject the builder's subsequent offer, nor did it fail to mitigate its loss. Damages for the cost of rectification work are available and awarded.

Court Disposition

Judgment for the plaintiff

Orders

  • ['Judgment for the plaintiff in the sum of $481,405.61']