The Owners – Strata Plan No 87265 v Saaib; The Owners – Strata Plan No 87265 v Alexandrova [2021] NSWSC 150

Supreme Court New South Wales

Medium Neutral Citation: The Owners – Strata Plan No 87265 v Saaib; The Owners – Strata Plan No 87265 v Alexandrova [2021] NSWSC 150 Hearing dates: 3–7 February 2020, 11, 12 March 2020 Date of orders: 01 March 2021 Decision date: 01 March 2021 Jurisdiction: Equity - Technology and Construction List Before: Henry J Decision: In proceeding 2016/382268: (1) The Plaintiff's summons filed 20 December 2016 be dismissed. (2) The Plaintiff pay the First Defendant's costs of the proceedings as agreed or assessed. In proceeding 2019/235463: (1) There be judgment in favour of the Plaintiff against the Defendant in the sum of $3,425,583.54. (2) The Defendant pay the Plaintiff's costs of the proceedings as agreed or assessed. Catchwords: AGENCY – whether implied actual authority to enter building contract – where builder did not sign contract – where numerous documents signed in name of builder – whether builder authorised nephew to enter into contract on his behalf – no authority found from the circumstances BUILDING AND CONSTRUCTION – Home Building Act 1989 (NSW) – statutory warranties – whether defects part of lot property or common property CONSUMER LAW – misleading or deceptive conduct – causation or reliance – where home warranty insurance issued due to misleading representations made by insurance broker – whether representations sufficiently causative of loss to Owners Corporation EVIDENCE – tendency evidence – conduct – whether evidence of builder performing favours for friends characterised as tendency evidence of conduct regarding commercial development Legislation Cited: Civil Liability Act 2002 (NSW), s 35 Civil Procedure Act 2005 (NSW), ss 56, 57, 100 Competition and Consumer Act 2010 (Cth), ss 87CB, 87CD; Sch 2 – Australian Consumer Law, ss 18, 236 Environmental Planning and Assessment Act 1979 (NSW), s 109E(3)(b) Evidence Act 1995 (NSW), ss 38, 95, 97, 128, 140(2) Fair Trading Act 1987 (NSW), ss 42, 68 Home Building Act 1989 (NSW), ss 18B, 92, 99 Strata Schemes (Freehold Development) Act 1973 (NSW), s 5 Strata Schemes Management Act 2015 (NSW), s 106 Uniform Civil Procedure Rules 2005 (NSW), r 42.1 Cases Cited: ABN AMRO Bank NV v Bathurst Regional Council (2014) 224 FCR 1; [2014] FCAFC 65 Anthony v Morton [2018] NSWSC 1884 Arktos Pty Ltd v Idyllic Nominees Pty Ltd [2004] FCAFC 119; ATPR 42-005 Atanaskovic v Birketu Pty Ltd [2019] NSWSC 1006 Australian Competition and Consumer Commission v Birubi Art Pty Ltd [2018] FCA 1595 Australian Competition and Consumer Commission v TPG Internet Pty Ltd (2013) 250 CLR 640; [2013] HCA 54 Bective Station Pty Ltd v AWB (Australia) Ltd [2006] FCA 1596 Bellgrove v Eldridge (1954) 90 CLR 613; [1954] HCA 36 Bonette v Woolworths Ltd (1937) 37 SR (NSW) 142 Borzi Smythe Pty Ltd v Campbell Holdings (NSW) Pty Ltd [2008] NSWCA 233 Briginshaw v Briginshaw (1938) 60 CLR 336; [1938] HCA 34 Butcher v Lachlan Elder Realty Pty Ltd (2004) 218 CLR 592; [2004] HCA 60 Campbell v Backoffice Investments Pty Ltd (2009) 238 CLR 304; [2009] HCA 25 Carr v Miller [2018] NSWSC 1424 CH Real Estate Pty Ltd v Jainran Pty Ltd; Boyana Pty Ltd v Jainran Pty Ltd [2010] NSWCA 37; 14 BPR 27,361 Chapman v Taylor; Vero Insurance Ltd v Taylor [2004] NSWCA 456 Commonwealth v Amann (1991) 174 CLR 64 Downer EDI Rail Pty Ltd v John Holland Pty Ltd (No 4) [2018] NSWSC 326 Dynamic Lifter Pty Ltd v Incitec Ltd (1994) 30 IPR 198 Elomar v R (2014) 300 FLR 323; [2014] NSWCCA 303 Equuscorp Pty Ltd v Glengallen Investments Pty Ltd (2004) 218 CLR 471; [2004] HCA 55 Fabre v Arenales (1992) 27 NSWLR 437 Field v Shoalhaven Transport Pty Ltd [1970] 3 NSWR 96 Finishing Services Pty Ltd v Lactos Fresh Pty Ltd [2006] FCAFC 177 Fox v Percy (2003) 214 CLR 118; [2003] HCA 22 Google Inc v Australian Competition and Consumer Commission (2013) 249 CLR 435; [2013] HCA 1 Gould v Vaggelas (1985) 157 CLR 215; [1985] HCA 75 H S D Co Pty Limited v Masu Financial Management Pty Limited [2008] NSWSC 1279 Hanave Pty Ltd v LFOT Pty Ltd [1999] FCA 357; 43 IPR 545 Henville v Walker (2001) 206 CLR 459; [2001] HCA 52 Houghton v Arms (2006) 225 CLR 553; [2006] HCA 59 I & L Securities Pty Ltd v HTW Valuers (Brisbane) Pty Ltd (2002) 210 CLR 109; [2002] HCA 41 Jacara Pty Ltd v Perpetual Trustees WA Ltd (2000) 106 FCR 51; [2000] FCA 1886 Janssen-Cilag Pty Ltd v Pfizer Pty Ltd (1992) 37 FCR 526 Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8 Junker v Hepburn [2010] NSWSC 88 Manly Council v Byrne [2004] NSWCA 123 March v E & MH Stramare Pty Ltd (1991) 171 CLR 506; [1991] HCA 12 Marks v GIO Australia Holdings Ltd (1998) 196 CLR 494; [1998] HCA 69 Meandarra Aerial Spraying Pty Ltd v GEJ & MA Geldard Pty Ltd as trustee for the G & M Geldard Family Trust [2013] 1 Qd R 319; [2012] QCA 315 Mistrina Pty Ltd v Australian Consulting Engineers Pty Ltd [2020] NSWCA 223 Nominal Defendant v McLennan [2012] NSWCA 148 Painter v Hutchison [2007] EWHC 758 (Ch) Pola v Commonwealth Bank of Australia (Federal Court, Sundberg J, 19 December 1997, unrep) Rail Corp New South Wales v Donald; Staff Innovations Pty Ltd [2018] NSWCA 82 Re HIH Insurance Ltd (In Liq) [2016] NSWSC 482; 335 ALR 320 RHG Mortgage Corporation Ltd v Iaani [2016] NSWCA 270 RHG Mortgage Ltd v Rosario Ianni [2015] NSWCA 56 Royal Guardian Mortgage Management Pty Ltd v Nguyen [2016] NSWCA 88 Seven Network Ltd v News Ltd [2007] FCA 1062 Smouha v Fleming (1997) 8 BPR 15,419 Symes v The Proprietor Strata Plan No. 31731 [2001] NSWSC 527 Tabcorp Holdings Ltd v Bowen Investments Pty Ltd (2009) (2009) 236 CLR 272; [2009] HCA 8 Tonna v Mendonca [2019] NSWSC 1849 Twynam Pastoral Co Pty Limited v AWB (Australia) Limited [2008] FCA 1922 Ucak v Avante Developments Pty Ltd [2007] NSWSC 367 Volonakis v Erceg [2019] NSWSC 1875 Vukmirica v Betyounan [2008] NSWCA 16 Wardley Australia Ltd v Western Australia (1992) 175 CLR 514; [1992] HCA 55 Warner v Hung, In the matter of Bellpac Pty Limited (Receivers and Managers appointed) (In Liq) No 2 (2011) 297 ALR 56; [2011] FCA 1123 Watson v Foxman (1995) 49 NSWLR 315 Westpac Banking Corporation v Velingos [2011] NSWSC 607 Wheeler v Ecroplot Pty Ltd [2010] NSWCA 61 White v Johnston (2015) 87 NSWLR 779; [2015] NSWCA 18 Yorke v Lucas (1985) 158 CLR 661 Texts Cited: G E Dal Pont, Law of Agency (4th ed, 2020, LexisNexis) Neville Moses, Ross Tzannes and Diane Skapinker, Strata Titles NSW (2017, Thomson Reuters) Peter Butt, Land Law (7th ed, 2017, Thomson Reuters) Philip Bambagiotti, Building Disputes & The Home Building Act 1989 (NSW) (2012, Thomson Reuters) Sydney Jacobs, Commercial Damages (Westlaw AU) Category: Principal judgment Parties: Proceedings 2016/382268