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Posted 10 October 2014
Category: Building Defects
In a Nutshell
On 8 October 2014, the High Court in Brookfield Multiplex Ltd v Owners Corporation Strata Plan 61288  HCA 36 (“the Brookfield case”) found that a builder did not owe a duty of care to an owners corporation in a serviced apartment complex (not residential building works) where sophisticated parties had negotiated rectification clauses.
The High Court held that a duty of care continues to exist if the principles in Bryan v Maloney are satisfied.
The decision is not conclusive with respect to negligence claims for:
Impact on Owners Corporations
This decision highlights the need for owners when negotiating contracts to purchase non-residential lots to carefully negotiate the terms of any defect rectification clauses in the common property.
Although this decision is not conclusive in respect of residential building works, owners will need to ensure that they:
The decision does not remove other remedies available such as misleading and deceptive conduct.
***The information contained in this article is general information only and not legal advice. The currency, accuracy and completeness of this article (and its contents) should be checked by obtaining independent legal advice before you take any action or otherwise rely upon its contents in any way.