Kazzi v KR Properties Global Pty Ltd t/as AK Properties Group [2024] NSWCA 143

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Kazzi v KR Properties Global Pty Ltd t/as AK Properties Group [2024] NSWCA 143 Hearing dates: 24 April 2024 Date of orders: 07 June 2024 Decision date: 07 June 2024 Before: Gleeson JA at [1]; Mitchelmore JA at [2]; Basten AJA at [176] Decision: (1) Pursuant to s 64 of the Civil Procedure Act 2005 (NSW), order that the name of the second respondent and second cross-appellant be amended to Calm Properties Pty Ltd (ACN 602 073 343) ATF Calm Properties Unit Trust (ABN 19 756 796 114) t/as AK Properties Group (ABN 62 971 068 965). (2) The appeal is dismissed with costs. (3) The cross-appeal is allowed. (4) Order 3 of the orders made by the court below on 15 August 2023 is set aside, and in lieu thereof, order that judgment be entered for the first and second cross-claimants against the second cross-defendant in the sum of $918,545.46, together with interest thereon from 1 August 2020 pursuant to s 100 of the Civil Procedure Act 2005 (NSW). (5) This judgment is to take effect on 15 August 2023. (6) Direct the parties to provide to the Registrar an agreed calculation for the prejudgment interest referred to in order 4 above within 7 days. In default of agreement, each party is to provide to the Registrar their proposed calculation of prejudgment interest within 7 days, and the Court will decide the matter on the papers. (7) The cross-respondent pay the cross-appellants' costs of the cross-appeal. Catchwords: TORTS – negligence – duty of care – statutory extension – breach of duty by nominated supervisor of works – nominated supervisor directed construction otherwise than in accordance with the approved plans – failure by builder to carry out works in a proper and workman-like manner NEGLIGENCE – assessment of damages – Hungerfords interest – whether the negligence of the nominated supervisor of building works caused the respondents to incur interest on their borrowings – where the delay in completion of the works resulted from multiple conjunctive causal factors Legislation Cited: Civil Procedure Act 2005 (NSW), ss 64, 100 Design and Building Practitioners Act 2020 (NSW), ss 36, 37, 41 Environmental Planning and Assessment Act 1979 (NSW), ss 76A, 96 Home Building Act 1989 (NSW), ss 18B(1), 53(1) Uniform Civil Procedure Rules 2005 (NSW), r 36.16(3A) Cases Cited: Amaca Pty Ltd v Booth (2011) 246 CLR 36; [2011] HCA 53 Bennett v Minister of Community Welfare (1992) 176 CLR 408 Dura (Australia) Constructions Pty Ltd v Hue Boutique Living Pty Ltd (No 3) [2012] VSC 99 Hadley v Baxendale (1854) 9 Ex 341; 156 ER 145 Houghton v Immer (No 155) Pty Ltd (1997) 44 NSWLR 46 Hungerfords v Walker (1989) 171 CLR 125; [1989] HCA 8 Leighton Contractors Pty Ltd v Kilpatrick Green Pty Ltd [1992] 2 VR 505 McCartney v Orica Investments Pty Ltd [2011] NSWCA 337 at [155] Oxford (NSW) Pty Ltd v KR Properties Global Pty Ltd trading as AK Properties Group ABN 62 971 068 965 [2023] NSWSC 343 Oxford (NSW) Pty Ltd v KR Properties Global Pty Ltd trading as AK Properties Group ABN 62 971 068 965 (No 2) [2023] NSWSC 680 Oxford (NSW) Pty Ltd v KR Properties Global Pty Ltd trading as AK Properties Group ABN 62 971 068 965 (No 3) [2023] NSWSC 881 Roberts v Goodwin Street Developments Pty Ltd (2023) 110 NSWLR 557; [2023] NSWCA 5 The Owners – Strata Plan No 84674 v Pafburn Pty Ltd [2023] NSWCA 301 The Owners – Strata Plan No 87060 v Loulach Developments Pty Ltd (No 2) [2021] NSWSC 1068 Category: Principal judgment Parties: Pierre Kazzi (Appellant / Cross-Respondent) KR Properties Global Pty Ltd (ACN 602 693 729) t/as AK Properties Group (ABN 62 971 068 965) (First Respondent / First Cross-Appellant) Calm Properties Pty Ltd (formerly AS Coaching Pty Ltd) (ACN 602 073 343) ATF Calm Properties Unit Trust (ABN 19 756 796 114) t/as AK Properties Group (ABN 62 971 068 965) (Second Respondent / Second Cross-Appellant) Representation: Counsel: M Ashhurst SC / T Poisel (Appellant / Cross-Respondent) J Horowitz (Respondents / Cross-Appellants)