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Builders’ liability to owners corporations: the recent high court decision

13 Oct 2014
Description

Provides a summary of the High Court decision on builders' liability and the stakeholder reaction to it. It also explores the possible relationship between the decision and the amendments to the Home Building Act 1989 which are about to come into force.

Introduction

On Wednesday 8 October 2014, in Brookfield Multiplex Ltd v Owners Corporation Strata Plan 612881 (Brookfield) the High Court held that a builder of a strata-titled serviced apartment building did not owe a duty of care to the Owners Corporation to take reasonable care to avoid purely economic loss arising from latent defects in the building’s construction. The builder was therefore not liable in negligence to the Owners Corporation.

This e-brief provides a summary of the High Court decision and the stakeholder reaction to it. It also explores the possible relationship between the decision and the amendments to the Home Building Act 1989 which are about to come into force.

Publication Details
Published year only: 
2014
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