Owners Corporation Court of Appeal Building Defects Win!

Adding Further Building Defects to an Existing Claim

On 17 April 2023, the New South Wales Court of Appeal in the case of Parkview Constructions Pty Ltd v The Owners – Strata Plan No. 90018 (Parkview), confirmed that an owners corporation can add new defects to an existing claim if the statutory warranty period in the Home Building Act 1989 (HBA) has not expired.

Supreme Court Amends Building Defects Statement of Claim

In the Parkview case, in the Supreme Court, the owners corporation sought to amend its Statement of Claim to add new defects. The Supreme Court granted permission to the owners corporation to add new defects to its existing claim.  The new defects that were added were not manifest when the owners corporation-initiated proceedings in the Supreme Court. Parkview appealed against the decision of the Supreme Court to the Court of Appeal.

Court of Appeal Win for Owners Corporation

The Court of Appeal upheld the decision of the Supreme Court by confirming that the owners corporation was entitled to add new defects to its existing claim and the addition was not a new cause of action but part of a single cause of action being a breach by the builder of the statutory warranties under the HBA.

Parkview argued that the addition of new defects introduced a “new” cause of action, and those new causes of action were not the same as the existing cause of action that was on foot. The Court of Appeal rejected that argument. It held that in a conventional case for breach of contract, there is a single cause of action.  That cause of action is complete when a defective structure is provided irrespective of the number of ways in which those defects have manifested themselves.  The Court of Appeal said that even though the HBA has created inroads into common law principles, however, those changes brought by the HBA do not alter the nature of the owners corporation’s claim.

Furthermore, the Court of Appeal said that a successor in title like an owners corporation sues a builder or a developer for statutory warranties under the HBA. The proceeding is based upon a breach of a single contract.  An amendment does nothing more than introduce further departures from the building contract that the builder and the developer had promised and that does not give rise to a new cause of action because the cause of action remains one, that is for a breach of the same contract.  Accordingly, the Court of Appeal held that the owners corporation’s amendments seeking to add new defects did not introduce a new cause of action and so the owners corporation was entitled to add them to its existing claim.

A Victory for Owners Corporations in NSW

This confirmation from the Court of Appeal is a great victory for owners corporations in NSW and it reconfirms the willingness of the judiciary to protect owners in strata schemes wherever it may be necessary.


Faiyaaz Shafiq Lawyer JS Mueller & Co Lawyers specialising in Strata Law

Faiyaaz Shafiq I LLB GDLP I Lawyer

A highly experienced and respected, results driven Litigation Lawyer specialising in the areas of strata litigation, building & construction, commercial litigation, debt recovery, personal and company insolvency. Profile I Linked

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For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.




Do You Have Strata Buildings Less than 6 Years Old?

The NSW Government has announced a win for strata managers and owners corporations who have buildings under 6 years old.

You now have an avenue to pursue the rectification of any common property for major building defects, subject to eligibility.

Here we share the following:

  • Key information
  • What is Project Intervene?
  • Who is Eligible?
  • What is classified as common property?
  • What is a serious defect?
  • How do I register for ‘Project Intervene’?
  • Related information

For specific information visit NSW Government ‘Project Intervene

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For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.




Have Your Say on the NSW Proposed Building Reforms!

The NSW Government is working to increase confidence in the NSW building industry by creating a new foundation for construction, by looking at improvement of laws and consumers/workers protection.

The Government is committed to:

  • Improving safety, accountability and transparency
  • Ensuring high-quality design, construction and maintenance
  • Modernising and simplifying building legislation

How to Have Your Say!

To have your say on the proposed building laws reform in NSW you can:

  • Complete the all-in-one survey which allows you to skip through all topics to those that are of interest to you or;
  • If you are only interested in a single topic, you may complete one or more of the 7 individual survey topics
  • You may also make a submission which allows you to give detailed feedback or respond directly to the questions in the regulatory impact statements

Deadline for Your Feedback

To provide feedback please Friday 25 November 2022.

For more information, please refer to the NSW Government here.

Contact Us

For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.




A Great WIN for Owners Corporations in NSW!

Existing Claims: Statutory Warranties and Defects

On 24 August 2022, in a recent case, the New South Wales Supreme Court confirmed that an owners corporation can add to an existing claim for a breach of statutory warranties new defects that may manifest after the owners corporation has commenced its legal action.

Did You Know?

This applies, even if the warranty period for those defects has expired at the time they are added to the claim.

Here we share the recent case: A Great Win for Owners Corporations in NSW

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For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.




Court Widens People Liable for Building Defects!

Building Defects – Who is Liable?

Can the director of a building company that is responsible for the construction of a new strata building be held personally liable for defects in the building?

The Design and Building Practitioners Act 2020 (Act) was introduced in 2020 and provides that a duty of care is owed by “a person who carries out construction work” to an owners corporation to avoid defects in the construction of the building. But who exactly is classified as “a person who carries out construction work”?

Is “a person who carries out construction work” limited to the entity that was contracted to do the work such as the builder or does it also include all persons involved in completing the project such as a supervisor, project manager and even the director of the builder’s company or the developer?

Personal Liability of Project Manager

A recent decision by the Supreme Court of NSW has found that the husband of a director of a building company was personally liable for defective building works done by the builder under the Act because he acted as the project manager and supervisor of the builder: see Goodwin Street Developments Pty Ltd atf Jesmond Unit Trust v DSD Builders Pty Ltd (in liq) [2022] NSWSC 624.

In this case, the builder was placed into liquidation and the developer brought proceedings against Mr Roberts the husband of a director of the builder.  According to the Court, Mr Roberts was a project manager of the builder, supervising construction works for the project. Therefore, Mr Roberts was found to be “a person who carried out construction work” under the Act and was found liable for the defects.

Liability of Developer

In another recent Supreme Court case, an owners corporation sued the builder and developer for damages arising from defects.

The Court found, among other things, that a developer could be held liable for defects under the Act as a person who carried out construction work.

The Court also said that under the Act, a person could be liable for defects if they could (but did not necessarily) have control of the building works: see The Owners – Strata Plan No 84674 v Pafburn Pty Ltd [2022] NSWSC 659.

Conclusion

These cases have far reaching consequences for directors, supervisors, project managers, developers and sub-contractors involved in construction work who all could be liable to owners corporations for defects under the Act, even for work done up to 10 years ago (as the Act is retrospective). However, for those persons to be liable, it must be proven that they have had or could have had some control over the building works.

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For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.




Your Online Strata Defects Rectification Guide

NSW government launches new building defects guide.

The ‘Strata Defects Rectification Guide’ has been developed as a first point of call for current and future lot owners and stakeholders such as strata managers concerned about defects.

The online tool provides vital information helping to navigate the process of identifying, documenting, reporting and rectifying building defects in strata schemes.

Access to the guide is available here Strata Defects Rectification Guide

For all NSW strata legal including by-laws, building defect and levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.




The New Laws that will Impact Strata Industry

On 10 June 2020, the New South Wales Government made new laws regulating the construction of apartment buildings.

Those new building defect laws commenced on 1 September 2020 and will have a significant impact on all owners corporations and the strata industry.

In this paper we discuss the new laws and how they will impact the strata industry including:

  • Occupation Certificates
  • Stop Work Orders
  • Rectification Orders
  • Delegation of Powers
  • Retrospectivity

Read the full paper here: New Laws that will have a significant impact on the Strata Industry.

For all NSW strata legal, by-law, building defect and levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.




Lodge Your Building Defect Complaint Now!

The NSW Building Commissioner, David Chandler, is asking for people to come forward with legitimate complaints about building defects – inclusive of waterproofing and structural issues.

His aim is to clean up the building and construction industry getting rid of dodgy builders. The more people that file legitimate building defect complaints the quicker this will be addressed.

Common Apartment Building Defects

  •  Internal Water Leaks
  • Cracking to Internal Structures
  • Cracking to External structures
  • Water Penetration from Outside
  • Guttering Faults
  • Tiling Problems
  • Defective Plumbing
  • Inappropriately Installed Materials
  • Combustible Cladding

To lodge your building defect complaint please click here Building Commissioner

Take Your Building Defect Stress Away

Our strata lawyers have extensive experience resolving strata building defect disputes relating to work within strata and community schemes.

We firmly believe that timely and effective advice takes the stress out of strata building defect claims and will achieve the best possible result for you.

If you need assistance with any of the following please contact us now.

  • Submitting Building Defect Complaints and/or Claims
  • Resolving and Managing Building Defect Complaints and/or Claims
  • Security of Payment Claims
  • Building and Construction Litigation
  • Advice on Statutory Warranty Periods
  • Home Building Compensation Fund Insurance Claims
  • 10-year Retrospective Building Defects Law Advice
  • Assistance with Alternative Dispute Resolution
  • Expert Determination
  • Drafting Building and Remedial Works Contracts
  • Building Bond Advice
  • Cladding Defect Advice
  • Home Building Act 1989 Advice

For all NSW strata legal, by-laws, building defect and levy recovery advice please contact us here or call 02 9562 1266, we’re happy to assist.




NCAT Confirms Biowood Cladding is Combustible

Late 2019 a major development occurred for the strata industry when the New South Wales Civil and Administrative Tribunal (NCAT) held that Biowood cladding is combustible, poses an undue risk of fire spreading and is a major building defect.

As of yesterday 4 August, 2020…

In a first for Australia, NCAT’s Appeal Panel upheld a 2019 finding by NCAT that Biowood cladding installed on the facade of a multi-storey building in Sydney is combustible and must be removed.

The owners corporation of the building was successfully represented by Mueller’s and is the first reported case where a Court or Tribunal has upheld a finding that a particular type of cladding is combustible.

The outcome of the case represents a win for owners corporations and sends another timely warning to builders and developers that use of combustible cladding is fraught with risk and carries with it substantial consequences.

The first case in Australia (and globally) the decision in this case sets a precedent A Win for Owners Corporation – Biowood Cladding Confirmed Combustible

For NSW strata legal, by-law, building defect and levy collection advice contact us here or call 02 9562 1266, we’re happy to assist.




New Building Bond and Defect Laws Start Today!

New building bond and building defect laws commence today, 1 July 2020.

The new laws are part of the NSW Government’s promise to “get tough” on building defects and form part of a suite of new laws that have recently been introduced to combat the spate of poorly built strata buildings.

These new laws will strengthen the rights of owners corporations to make claims against builders, developers and other to have defects repaired or obtain compensation to cover the cost of repairing defects.

That Act introduces new laws with respect to the rectification of building defects in new strata buildings. In this article we take a look at those new laws:

  • The New Laws and the Buildings They Apply to
  • Changing Due Dates for Payment of Building Bonds
  • Consequences for Failing to Provide a Building Bond and Increased Penalties
  • Offences for Developers Providing False/Misleading Information
  • Using Building Bonds to Pay Other Costs
  • Extending  the Time Frame for Building Bond Claims
  • Cancelling a Building Bond
  • Recovering of the Building Bond from Developers
  • Investigation and Enforcement Powers
  • Protection of Building Inspectors from Personal Liability
  • Forcing Developers to Provide Information to Inspectors

Here we outline the new laws New Building Bond and Defect Laws.

For NSW strata legal, building defects and levy collection advice please contact us here or call 02 9562 1266, we’re happy to assist.