Bailey & 1 Ors v Redebi Pty Limited & 1 Ors [1999] NSWSC 918

Reported Decision : [1999] Aust Torts Reports 81-523

New South Wales Supreme Court CITATION : Bailey & 1 Ors v Redebi Pty Limited & 1 Ors [1999] NSWSC 918 CURRENT JURISDICTION : Common Law Division Construction List FILE NUMBER(S) : 55022/98 HEARING DATE(S) : 11/05/99, 12/05/99, 14/05/99, 19/05/99, 09/07/99, 12/08/99 JUDGMENT DATE : 13 September 1999

STEPHEN FLOYD BAILEY (First Plaintiff) PARTIES : BAILEY'S DIESEL SERVICES PTY LIMITED (ACN 003 170 769) (Second Plaintiff) REDEBI PTY LIMITED trading as PR DESIGN CO (ACN 002 557 842) (First Defendant) SHERSON & ASSOCIATES PTY LIMITED (ACN 001 022 993) (Second Defendant) JUDGMENT OF : Santow J

I Faulkner (Plaintiffs) COUNSEL : G P McNally (First Defendant) R Hunt (Second Defendant) Henry Davis York (Plaintiffs) SOLICITORS : Colin Biggers & Paisley (First Defendant) Corrs Chambers Westgarth (Second Defendant) CATCHWORDS : TORTS — Negligence — Architect's duty of care and its scope — Policy — Building defectively designed with latent defect — internal wall required to act as external wall which collapses in high wind because not sufficiently stabilised — Liability of architect for design, supervision and communication with engineer in particular circumstances — Liability of engineer — Reasonableness of conduct of plaintiff as owner or lessee in relation to later reports by other experts prior to collapse — Relevance of whether if acted upon collapse would have been averted — Causation — intervening cause or novus actus interveniens — Aggravation of damage — Contributory negligence — Mitigation — Relevance of defendant's duty to take care against the same risk as eventuates — tortious recovery in negligence of damages for loss of a chance versus all or nothing LIMITATION OF ACTIONS — Negligence — Onus — Pirelli rule in Australia — Economic loss — When defect discoverable — Allowance for time taken to take reasonable steps —Nominal damage outside limitation period — When is damage sustained if depends on a contingency. ACTS CITED : Limitation Act 1969 (NSW) s14(1) Astley v Austrust Limited (1999) 161 ALR 155; 73 ALJR 403 Bennett v Minister for Community Welfare (1992) 176 CLR 408 Bryan v Maloney (1995) 182 CLR 609 Cartledge v Jopling & Sons Ltd [1960] AC 758 Chappel v Hart (1998) 156 ALR 517; 72 ALJR 1344 Daniels v Anderson (1995) 37 NSWLR 438 Davies v Adelaide Chemical & Fertiliser Company Ltd (1946) 74 CLR 541 Environmental Agency (formerly National River Authority) v Empress Car Co (Abertillery) Ltd [1998] 2 WLR 350 Hawkins v Clayton (1988) 164 CLR 539 Jobbins v Capel Court Corporation Ltd & Or (1989) 25 FCR 226 Jones v Dunkel (1959) 101 CLR 298 Kavanagh v Akhtar (1998) 45 NSWLR 588 Mcauley v London Transport Executive [1957] Lloyd's LLR 500 CASES CITED : McKew v Holland & Hannen & Cubitts (Scotland) Ltd (1970) SC(HL) 20 Magman International Pty Ltd & Ors v Westpac Banking Corporation (1991) 32 FCR 1 Mahoney v J Krusich (Demolitions) Pty Ltd (1985) 156 CLR 522 March v E & M H Stramare Pty Ltd (1991) 171 CLR 506 Naxakis v Western General Hospital & Anor (1999) 73 ALJR 782 Palsgraf v Long Island RR (1928) 248 NY 339 Perre v Apand Pty Ltd ([1999] HCA 36, 12 August 1998, unreported) Pirelli General Cable Works Ltd v Oscar Faber & Partners [1983] 2 AC 1 Plenty v Argus [1975] WAR 155 (FC) Pullen & Anor v Gutteridge, Haskins & Davey Pty Ltd [1993] 1 VR 27 Reeves v Commissioner or Police of the Metropolis [1999] 3 WLR 363 Sheldon v McBeath (1993) Aust Torts Reports 81-208 CA(NSW) Teachers Health Investments Pty Limited v Wynne (1996) NSW Conv Rep 55-785 Wardley Australia Ltd v Western Australia (1992) 175 CLR 514 Westward Clothing Co Pty Ltd v Freehill Hollingdale & Page [1999] VSC 266 (Smith J, 30 July 1999, unreported) DECISION : Defendants Architect and Engineer liable in negligence.