The Owners – Strata Plan No 89074 v Ceerose Pty Ltd [2024] NSWSC 1494

Supreme Court New South Wales

Medium Neutral Citation: The Owners – Strata Plan No 89074 v Ceerose Pty Ltd [2024] NSWSC 1494 Hearing dates: 28 October 2024 Date of orders: 26 November 2024 Decision date: 26 November 2024 Jurisdiction: Equity - Commercial List Before: Rees J Decision: Orders for adoption of referee reports. Catchwords: BUILDING AND CONSTRUCTION – claim for breach of statutory warranties under Home Building Act 1989 (NSW) – proceedings on foot for 8 years – before the Court on 52 occasions – parties reach agreement 'in principle' for builder to rectify defects but no final agreement reached more than a year later – owner refuses access to builder to rectify defects – referral to engineer/barrister – 13-day reference – referee provides liability and quantum reports totalling 440 pages. REFEREE – reference made to facilitate just, quick and cheap resolution – principles at [5]-[9] – whether to adopt report – principles at [10]-[14] – whether interests of justice served. MITIGATION – obligation on plaintiff to act reasonably – principles and case law review at [38]-[53] – Owners v Di Blasio Constructions considered – whether plaintiff owes duty to allow builder to minimise its damages. SCOTT SCHEDULES – history and purpose – amendment, at [114]-[118] – whether referee made ruling that defects not in Scott Schedule would not be considered – whether referee denied natural justice by considering defects not in Scott Schedule. Legislation Cited: Civil Procedure Act 2005 (NSW), s 56(1) Evidence Act 1995 (NSW), s 69(3) Home Building Act 1989 (NSW), ss 18B, 18BA, sch 4 s 125 Home Building Amendment Act 2014 (NSW) Uniform Civil Procedure Rules 2005 (NSW), rr 2.1, 2.3, 15.2, 20.14(1), 20.17, 20.20, 20.24(1) Cases Cited: Bellgrove v Eldridge (1954) 90 CLR 613 Bradshaw v McEwans Pty Ltd (1951) 217 ALR 1 British Westinghouse Electric and Manufacturing Co Ltd v Underground Electric Railways Co of London Ltd [1912] AC 673 Building Insurers' Guarantee Corporation v The Owners Strata Plan 57504 [2010] NSWCA 23 Burke v LFOT Pty Ltd (2002) 209 CLR 282 Burns v MAN Automotive (Aust) Pty Ltd (1986) 161 CLR 653; [1986] HCA 81 Cave v Allen Jack and Cottier Pty Ltd [2014] NSWSC 1365 Cessnock City Council v 123 259 932 Pty Ltd [2024] HCA 17 Chocolate Factory Apartments Pty Ltd v Westpoint Finance Pty Ltd [2005] NSWSC 784 CJD Equipment Pty Limited v A&C Constructions Pty Limited [2011] NSWCA 188 Commercial Union Assurance Company of Australia Ltd v Ferrcom Pty Ltd (1991) 22 NSWLR 389 Commonwealth of Australia v Bank of New South Wales (1949) 79 CLR 497 Corbett Court Pty Ltd v Quasar Constructions (NSW) Pty Ltd [2008] NSWSC 1423 Dale v Dennis [2005] WADC 49 Driver v War Service Homes Commissioner (1923) 44 ALT 103 Hacer Group Pty Ltd v Euro Façade Tech Export Sdn Bhd [2022] VSC 373 Hampton Court Ltd v Crooks (1957) 97 CLR 367 Harris v Morabito Holdings Pty Ltd [2018] NSWSC 912 Jagatramka v Wollongong Coal Ltd [2021] NSWCA 61 Johnson v Perez (1988) 166 CLR 351 Jones v Sutherland Shire Council [1979] 2 NSWLR 206 Kassam v Hazzard; Henry v Hazzard (2021) 106 NSWLR 520 Koufos v C Czarnikow Ltd (The Heron II) [1969] 1 AC 350 Linklaters Business Services v Sir Robert McAlpine Ltd [2010] EWHC 2931 (TCC) McGlinn v Waltham Contractors Ltd [2007] EWHC 149 Minister for Lands and Forests v McPherson (1991) 22 NSWLR 687 North East Equity Pty Ltd v Proud Nominees Pty Ltd (No 2) [2008] FCA 1189 Owners SP 76674 v Di Blasio Constructions Pty Ltd [2014] NSWSC 1067 Owners SP 92450 v JKN Para 1 Pty Ltd [2023] NSWCA 114 Owners Strata Plan 78465 v M D Constructions Pty Ltd [2016] NSWSC 162 Owners Strata Plan 89041 v Galyan Pty Ltd [2019] NSWSC 619 Payzu v Saunders [1919] 2 KB 518 Pollitt v R (1992) 174 CLR 558 R v Preston (Court of Criminal Appeal (NSW), 9 April 1997, unrep) Re HIH Insurance Ltd (in liq) [2015] NSWSC 790 Regional Development Australia Murraylands and Riverland Inc v Smith [2015] SASCFC 160 Renown Corporation Pty Ltd v SEMF Pty Ltd (2022) 110 NSWLR 246 Ritz Hotel Ltd v Charles of the Ritz Ltd (1988) 15 NSWLR 158 Rodriguez & Sons Pty Limited v Queensland Bulk Water Supply Authority (t/as Seqwater) (No 25) [2020] NSWSC 1544 Sherson & Associates Pty Ltd v Bailey [2000] NSWCA 275 Sotiros Shipping Inc v Sameiet Solholt (The Solholt) [1983] 1 Lloyd's Rep 605 St Vincent's Hospital (Melbourne) Inc v University of Adelaide [2002] VSC 297 Subramaniam v Public Prosecutor [1956] WLR 965 Tabcorp Holdings Ltd v Bowen Investments Pty Ltd (2009) 236 CLR 272; [2009] HCA 8 TC Industrial Plant Pty Ltd v Robert's Queensland Pty Ltd (1963) 180 CLR 130 TCN Channel 9 v Hayden Enterprises Pty Ltd (1989) 16 NSWLR 130 Telecomputing PCS Pty Ltd v Bridge Wholesale Acceptance Corporation (Aust) Ltd (1991) 24 NSWLR 513 The Owners of SP 97315 v Icon Co (NSW) [2023] NSWCA 303 Toll (FGCT) Pty Ltd v Alphapharm Pty Ltd and Ors (2004) 219 CLR 165 Tyco Australia Pty Ltd v Optus Networks Pty Ltd [2004] NSWCA 333 Wenham v Ella (1972) 127 CLR 454 West Boat Builders Pty Ltd v Cull Holdings Pty Ltd (2000) 16 BCL 21 Woolf v 52 Birriga Road Pty Ltd [2012] NSWSC 921 Xuereb v Viola (1989) 18 NSWLR 453 Texts Cited: Professor JW Carter, Contract Law in Australia (8th ed, 2023, JW Carter Publishing) Julian Bailey, Construction Law: Volume II (1st ed, 2011, Routledge) Richard Manly SC, "The Use of Scott Schedules in Technology, Engineering and Construction Litigation" (2011) 27 Building and Construction Law Journal 151 Ritchie's Uniform Civil Procedure (NSW) Category: Procedural rulings Parties: The Owners – Strata Plan No 89074 (Plaintiff) Ceerose Pty Ltd (First Defendant) Prisand Investments Pty Ltd (Second Defendant) Representation: Counsel: F Hicks SC / W Marshall (Plaintiff) M Ashhurst SC / M Keene (Defendants) Solicitors: Hamilton Locke (Plaintiff) Salim Rutherford Lawyers (Defendants) File Number(s): 2017/262472