Bellgrove v Eldridge [1954] HCA 36

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[HIGH COURT OF AUSTRALIA.]

BELLGROVE . 4 Fi ss " é : APPELLANT ; PLAINTIFF, AND ELDRIDGE : s ' 5 3 a : RESPONDENT. DEFENDANT,

ON APPEAL FROM THE SUPREME COURT OF VICTORIA.

Building—Contract for erection of house—Breach by builder—Faulty foundations— H. C. or A.

Instability of structure—Demolition—Reconstruction—Measure of damages. 1954.

In an action for damages for breach of contract brought by a building ae owner against a builder, it appeared that the builder had substantially departed "4/14 47, from the specifications, and that, by reason of such departure, the foundations ~ __~ were defective and the building was unstable. Sypyey,

Aug. 20.

Held that the measure of damage was not the difference between the RAE,

value of the building as erected and the value it would have borne if erected Dixon C.J.,

¥ Ze « Webb and in accordance with the contract but the cost, in excess of any amount of the Taylor JJ.

contract price unpaid, of reasonable and necessary work to make it conform to the contract plus consequential losses by reason of the breach.

Held further, that, in the circumstances, demolition of the building and rebuilding was reasonable and necessary to provide a building in conformity with the contract.

Decision of the Supreme Court of Victoria (O'Bryan J.) affirmed.

Apprat from the Supreme Court of Victoria.

Maurice Louis Bryan Bellgrove commenced an action on 19th April 1951 in the Supreme Court of Victoria, against Marjorie Alberta Eldridge. The plaintiff claimed the sum of £805 14s. 0d. as money due under an agreement dated 6th June 1949, whereby he undertook to build a house on the defendant's land, Block 15 Southey Road, Sandringham, Victoria and as extras supplied at defendant's request in building the said house. By counterclaim dated 5th May 1952 the defendant alleged that by reason of specified breaches of the contract on the part of the plaintiff the house was worthless and claimed damages.