Brookfield Multiplex Ltd v Owners Corporation Strata Plan 61288 [2014] HCA 36

HIGH COURT OF AUSTRALIA

FRENCH CJ, HAYNE, CRENNAN, KIEFEL, BELL, GAGELER AND KEANE JJ

BROOKFIELD MULTIPLEX LTD APPELLANT

AND

OWNERS CORPORATION STRATA PLAN 61288 & ANOR RESPONDENTS

Brookfield Multiplex Ltd v Owners Corporation Strata Plan 61288 [2014] HCA 36 8 October 2014 S66/2014

ORDER

1. Appeal allowed.

2. Set aside the order of the Court of Appeal of the Supreme Court of New South Wales made on 25 September 2013 and, in its place, order that the appeal to that Court be dismissed with costs.

3. Special leave to cross-appeal granted.

4. Cross-appeal treated as instituted and heard instanter and dismissed with costs.

5. First respondent to pay the appellant's costs of the appeal.

On appeal from the Supreme Court of New South Wales

Representation

D F Jackson QC with T J Breakspear for the appellant (instructed by Gilbert + Tobin Lawyers)

F Corsaro SC with P J Bambagiotti for the first respondent (instructed by Grace Lawyers Pty Ltd)

Submitting appearance for the second respondent

Notice: This copy of the Court's Reasons for Judgment is subject to formal revision prior to publication in the Commonwealth Law Reports.

CATCHWORDS

Brookfield Multiplex Ltd v Owners Corporation Strata Plan 61288

Negligence – Duty of care – Pure economic loss – Strata-titled apartment complex constructed pursuant to contract between builder and developer – Apartments sold pursuant to standard form contract of sale – Contracts conferred rights to have defects remedied – Latent defects in common property – Owners corporation for strata scheme claimed damages from builder for pure economic loss – Whether builder owed owners corporation a duty of care – Relevance of inquiry into whether builder owed anterior duty of care to developer.

Words and phrases – "assumption of responsibility", "common property", "disconformity of obligations", "proximity", "pure economic loss", "reliance", "vulnerability".