Construction & Design Australia Pty Ltd v Robinson (No 2) [2024] NSWSC 376

Supreme Court New South Wales

Medium Neutral Citation: Construction & Design Australia Pty Ltd v Robinson (No 2) [2024] NSWSC 376 Hearing dates: 18 – 21, 25 March 2024; further written submissions 27 & 28 March, 5 & 8 April 2024; further argument 9 April 2024 Decision date: 11 April 2024 Jurisdiction: Common Law Before: Stevenson J Decision: Builder entitled to recover balance of sum due under building contract less cost of rectifying bowed wall – owners' misleading or deceptive conduct not established Catchwords: BUILDING AND CONSTRUCTION – Contract – cost plus contract for construction of residence – alleged breach of contract – whether builder entitled to claim payment of outstanding invoices – whether builder entitled to claim damages for loss of profits BUILDING AND CONSTRUCTION – Australian Consumer Law – whether misleading or deceptive conduct – whether builder represented that cost of building would be around and not substantially more than $550,000 or $750,000 – whether owners relied on any such representation when deciding to enter the contract BUILDING AND CONSTRUCTION – Contract – damages – whether "alternative transaction" case or "no transaction" case available – where damages claimed "because" of the alleged misleading or deceptive conduct BUILDING AND CONSTRUCTION – Contract – variation – oral variation – whether owners agreed to substitute blockwork for Rediwall construction – whether builder can rely on oral variation in defence of claim by owner Legislation Cited: Competition and Consumer Act 2010 (Cth), Sch 2 – Australian Consumer Law Home Building Act 1989 (NSW) Home Building Regulation 1997 (NSW) (repealed) Home Building Regulation 2014 (NSW) Cases Cited: Australian Competition and Consumer Commission v Dateline Imports Pty Ltd [2015] FCAFC 114 Australian Competition and Consumer Commission v Woolworths Ltd [2019] FCA 1039 Australian Development Corporation Pty Ltd v White [2001] NSWCA 9 Bellgrove v Eldridge (1954) 90 CLR 613; [1954] HCA 36 Bitannia Pty Ltd v Parkline Constructions Pty Ltd (2006) 67 NSWLR 9; [2006] NSWCA 238 Brewarrina Shire Council v Beckhaus Civil Pty Ltd [2006] NSWCA 361 Butcher v Lachlan Elder Realty Pty Ltd (2004) 218 CLR 592; [2004] HCA 60 Casbee Properties Pty Ltd v Patoka Pty Ltd [2003] NSWCA 361 Commonwealth Bank of Australia v Rafidi [2016] NSWSC 1931 Commonwealth of Australia v Amann Aviation Pty Ltd (1991) 174 CLR 64; [1991] HCA 54 Ellis's Town House Pty Ltd v Botan Pty Ltd [2017] NSWCA 20 Gan v Xie [2023] NSWCA 163 Gerrard v Slamar [2004] WASCA 253 GlaxoSmithKline Australia Pty Ltd v Reckitt Benckiser (Australia) Pty Ltd (No 2) [2018] FCA 1 JLW (Vic) Pty Ltd v Tsiloglou [1994] 1 VR 237 Goodrich Aerospace Pty Ltd v Arsic (2006) 66 NSWLR 186; [2006] NSWCA 187 Jones v Schiffmann (1971) 124 CLR 303; [1971] HCA 52 Kane's Hire Pty Ltd v Anderson Aviation Australia Pty Ltd [2023] FCA 381 Lin v Zheng [2023] NSWCA 174 Mills v Walsh [2022] NSWCA 255 Paraiso v CBS Build Pty Ltd [2020] NSWSC 190 Petropoulos v CPD Holdings Pty Ltd t/as The Bathroom Exchange [2019] NSWSC 897 Radford v De Froberville [1977] 1 WLR 1262 Rafidi v Commonwealth Bank of Australia Ltd [2017] NSWCA 96 Société d'Avances Commerciales (Société Anonyme Egyptienne) v Merchants' Marine Insurance Co (1924) 20 Ll L Rep 140 South Parklands Hockey & Tennis Centre Inc v Brown Falconer Group Pty Ltd (2004) 88 SASR 65; [2004] SASC 81 Tabcorp Holdings Ltd v Bowen Investments Pty Ltd (2009) 236 CLR 272; [2009] HCA 8 Watson v Foxman (1995) 49 NSWLR 315 Watts v Rake (1960) 108 CLR 158; [1960] HCA 58 Wheeler v Ecroplot Pty Ltd [2010] NSWCA 61 Wright v Foresight Constructions Pty Ltd [2011] NSWCA 327 Texts Cited: Rawlinsons Construction Cost Guide (32nd ed, 2024) R V Miller, Miller's Australian Competition and Consumer Law Annotated (45th ed, 2023, Thomson Reuters) Category: Principal judgment Parties: Construction & Design Australia Pty Ltd ACN 168 477 316 (Plaintiff/Cross-Defendant) Nerida Robinson (First Defendant/Cross-Claimant) Mark Bowmer (Second Defendant/Cross-Claimant) Gerard Peter Turnbull (Second Cross-Defendant) Daniel John Turnbull (Third Cross-Defendant) Representation: Counsel: M Klooster / M Waters (Plaintiff/Cross-Defendants) A Crossland / B Flaherty (Defendants/Cross-Claimants)