Fair Trading Administration Corporation v Meriton Apartments Pty Limited [2010] NSWDC 22

Reported Decision : 10 DCLR (NSW)118

New South Wales District Court

CITATION: Fair Trading Administration Corporation v Meriton Apartments Pty Limited [2010] NSWDC 22

HEARING DATE(S): 4-5 May 2009 and 12-16 October 2009

JUDGMENT DATE: 20 January 2010

EX TEMPORE JUDGMENT DATE : 22 January 2010

JURISDICTION: Civil

JUDGMENT OF: Hungerford ADCJ

1. Verdict and judgment for the plaintiff against the defendant in the sum of $473,247 plus interest from 20 March 2006 to 22 January 2010 in the sum of $174,128.96. DECISION: 2. The defendant is to pay the plaintiff's costs on the ordinary basis up to and including 22 April 2009 and on an indemnity basis from 23 April 2009 onwards. 3. The exhibits are to remain with the file, to be returned on application by the parties to the Registry after 28 days.

CATCHWORDS: BUILDING AND CONSTRUCTION CONTRACTS - Proceedings for recovery of a debt from builder by statutory insurer for defective building work - Losses incurred by insurer from payments to owners under comprehensive insurance scheme - Whether losses reasonably incurred in respect of building work - Whether matters that could give rise to losses notified by owners to insurer within 6 months after first becoming aware of defects - Whether notified not later than 3 years from commencement of building work - Distinction between "major structural" and "general" defects - Whether a deemed refusal of insurance claim - Appeal by owners part refusal of claim by insurer - Whether resultant approval of claim was for purposes of insurance scheme so as to support recovery from builder - Whether decisions by insurer affecting owner's claim meant further decisions were ultra vires the insurance scheme to preclude recovery from builder - Cost of rectifying defects - Whether rectification work reasonable and necessary - Betterment value from remedial action - Interest - Costs.