Chocolate Factory Apartments v Westpoint Finance & Ors [2005] NSWSC 784

New South Wales Supreme Court

CITATION : Chocolate Factory Apartments v Westpoint Finance & Ors [2005] NSWSC 784

HEARING DATE(S) : 14, 15 and 16 June 2005. Further written submissions 24 June 2005 and 20, 26 and 29 July 2005.

JUDGMENT DATE : 8 August 2005

JURISDICTION : Equity Division - Technology & Construction List

JUDGMENT OF : McDougall J at [1]

DECISION : See paras [212] to [214] of judgment

CATCHWORDS : PRACTICE AND PROCEDURE - adoption of referee's report - relevant principles - whether referee erred in finding fiduciary duty case not open on pleadings - whether referee erred in construction of contract - DAMAGES - defective building works - whether appropriate measure of damage is cost of rectification or diminution in value - whether referee erred in finding rectification not reasonable - whether referee erred in finding no diminution in value

Corporations Act 2001 (Cth) Evidence Act 1995 (NSW) LEGISLATION CITED : Home Building Act 1989 (NSW) SCR Pt 72 r 8(2)(b)

Abigroup v Peninsula Balmain [2001] NSWSC 752 Australian Broadcasting Commission v Australasian Performing Rights Association Ltd (1973) 129 CLR 99 Bellgrove v Eldridge (1954) 90 CLR 613 B P Refinery (Westernport) Pty Ltd v Hastings Shire Council (1977) 52 ALJR 20 Breen v Williams (1996) 186 CLR 71 Byrne v Australian Airlines Ltd (1995) 185 CLR 410 Central Coast Leagues Club v Gosford City Council (Giles CJ Comm D, 9 June 1998, unrep) [BC 9802257] Chalmers Leask Underwriting Agencies v Mayne Nickless Ltd (1983) 155 CLR 279 Chloride Batteries Australia Ltd v Glendale Chemical Products Pty Ltd (1988) 17 NSWLR 60 Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337 Connecticut Fire Insurance Co v Kavanagh (1892) AC 473, 480 De Cesare v De Luxe Motors Pty Ltd (1996) 67 SASR 28 Director of War Service Homes v Harris [1968] Qd R 275 DTR Nominees Pty Ltd v Mona Homes Pty Ltd (1978) 138 CLR 423 Foxman Holdings Pty Ltd v NMBE Pty Ltd (1994) 38 NSWLR 615 CASES CITED : Franks & Anor v Berem Constructions Pty Ltd (NSWCA 2 December 1998, unreported; BC 9806367) Grey v Manitoba and North Western Railway Co of Canada (1897) AC 254 Hospital Products Ltd v United States Surgical Corporation (1984) 156 CLR 41 Hughes Bros Pty Ltd v Minister for Public Works (Rolfe J, 17 August 1994, unreported; BC 9402885) Hyder Consulting (Australia) Pty Ltd v Wilh Wilhelmsen Agency Pty Ltd [2001] NSWCA 313 Investors Compensation Scheme Ltd v West Bromwich Building Society [1998] 1 WLR 896 Jones v Dunkel (1959) 101 CLR 298 Reardon Smith Line Ltd v Yngvar Hansen-Tangen [1976] 1 WLR 989 Royal Botanic Gardens & Domain Trust v South Sydney City Council (2002) 76 ALJR 436 SAS Trustee Corporation v Scott Carver Pty Ltd [2003] NSWSC 1097 Seven Sydney v Fuji Xerox [2004] NSWSC 902 Super Pty Ltd v SJP Formwork (Aust) Pty Ltd (1992) 29 NSWLR 549 Suttor v Gundowda Proprietary Limited (1950) 81 CLR 418 White Constructions (NT) Pty Ltd v Commonwealth of Australia (1990) 7 BCL 193 Xuereb v Viola (1989) 18 NSWLR 453