Westpoint Management Ltd v Chocolate Factory Apartments Ltd; Chocolate Factory Apartments v Westpoint Finance & Ors [2007] NSWCA 253

New South Wales Court of Appeal

CITATION: Westpoint Management Ltd v Chocolate Factory Apartments Ltd; Chocolate Factory Apartments v Westpoint Finance & Ors [2007] NSWCA 253

HEARING DATE(S): 26 July 2007

JUDGMENT DATE: 20 September 2007

JUDGMENT OF: Giles JA at 1; McColl JA at 112; Campbell JA at 113

DECISION: In proceedings 40715/05, appeal dismissed with costs. In proceedings 40789/05 - (1) Appeal allowed in part; (2) Set aside order 1 made on 2 September 2005 so far as the adoption of the interim reports adopted the referee's conclusions that damages should not be awarded with respect to the car park shutter, internal doors, security system and access control, mechanical deficiencies, falls to showers, materials pipes, defects identified by Tyrrells and defects identified by purchasers; (3) Set aside the judgment against the second defendant in order 3 made on 2 September 2005; (4) Remit proceedings to McDougall J for further consideration of adoption of the interim reports in accordance with the reasons; (5) Second respondent to pay eighty per cent of the appellant's costs of the appeal and to have a certificate under the Suitors Fund Act if qualified.

CATCHWORDS: CONTRACTS - building contract - defective or incomplete work - entitlement to costs of rectificiation - if rectification a reasonable course - consideration of principles derived from Bellgrove v Eldridge - relevance of intention to carry out rectification work or whether it will be carried out - REFEREE'S REPORT - approach to consideration of adoption.

Abigroup Contractors Pty Ltd v Sydney Catchment Authority (2004) 208 ALR 630; Alucraft Pty Ltd (in liq) v Grocon Pty Ltd (Victorian Supreme Court, Smith J, 22 April 1994, unreported); Bellgrove v Eldridge (1954) 90 CLR 613; Brewarrina Shire Council v Beckhaus Civil Pty Ltd [2006] NSWCA 361; Central Coast Leagues Club v Gosford City Council (Giles J, 9 June 1998, unreported); The Commonwealth v Amann Aviation Pty Ltd (1991) 174 CLR 64; De Cesare v Deluxe Motors Pty Ltd (1996) SASR 28; Director of War Service Homes v Harris (1968) Qd R 275; Freeman v Niroomand (1997) 52 ConLR 116; CASES CITED: Hyder Consulting (Australia) Pty Ltd v Wilh Wilhelmsen Agency Pty Ltd [2001] NSWCA 313; Malec v J C Hutton Pty Ltd (1990) 169 CLR 638; Mulligan v Benton [1999] NSWCA 339; Nine Network Pty Ltd v Kennedy Miller Television Pty Ltd (CA, 18 June 1994, unreported); Robinson v Harman (1848) 1 Exch 850; Ruxley Electronics and Construction Ltd v Forsyth (1996) 1 AC 344; SAS Trustee Corporation v Scott Carver Pty Ltd [2003] NSWSC 1097; Scott Carver Pty Ltd v SAS Trustee Corporation [2005] NSWCA 462; Super Pty Ltd v SJP Formwork (Aust) Pty Ltd (1992) 29 NSWLR 549; Tito v Waddell (No 2) (1977) Ch 106.