NSW Court of Appeal finds defects duty
In a judgment dated 25 September 2013 in The Owners — Strata Plan No. 61288 v. Brookfield Australia Investments Ltd (2013) NSWCA 317, the NSW Court of Appeal has found that a builder owed a duty to exercise reasonable care in the construction of a building, to avoid causing an Owners’ Corporation to suffer loss resulting from latent defects in the common property which were structural, constituted a danger to persons or property in the vicinity or made those apartments uninhabitable. Along the way, the court found the builder owed a concurrent duty in tort to a developer with whom it had a detailed written building contract, although both were major, sophisticated corporations.
This is a surprising judgment, which will rightly concern the construction industry in Australia.
In Star of the Sea  NSWSC 712, McDougall J had found that a builder did not owe a duty of care to an Owners’ Corporation in constructing a residential apartment block. At least part of the reasoning in Star of the Sea was that parliament had legislated in the Home Building Act (NSW) for a system of warranties to protect residential owners from defects…
If you are registered and logged in to the site, click on the link below to read the rest of the King & Wood Mallesons briefing. If not, please register or sign in with your details below.
News from King & Wood Mallesons
News from The Lawyer
Briefings from King & Wood Mallesons
High Court decides: liquidators of insolvent landlords can disclaim leases with the effect of extinguishing the tenant’s leasehold interest
In Willmott Growers Group Inc v Willmott Forests Limited, the majority of the High Court upheld the Victorian Court of Appeal’s conclusion that the liquidators of an insolvent landlord can disclaim a lease.
Queensland recently brought an interlocutory application seeking a declaration that its laws were valid until a court finally determined otherwise.
Analysis from The Lawyer
All-encompassing change is now a reality for the UK’s top 200 firms. How are they coping with the unprecedented upheaval? The Lawyer finds out