The Owners - Strata Plan No 68372 v Allianz Australia Insurance Limited [2014] NSWSC 1807

Supreme Court New South Wales

Medium Neutral Citation: The Owners - Strata Plan No 68372 v Allianz Australia Insurance Limited [2014] NSWSC 1807 Hearing dates: 3 and 4 December 2014 Decision date: 18 December 2014 Before: Ball J Decision: See paragraphs 92 and 93 of the judgment. Catchwords: BUILDING AND CONSTRUCTION - adoption of referee's report - UCPR, r 20.24 - application of parties opposing adoption of referee's report on certain matters - whether third defendant developer a "developer" under Home Building Act 1989 (NSW), s 3A and thus liable to plaintiff owners corporation under s 18C for contractor's breach of s 18B implied warranties - whether claim brought under s 18C an apportionable claim - whether referee erred in selecting cheaper option for rectification of laundry waste defects - where referee applied relevant Australian Standard but failed to consider compliance with contractual specification - where insistence on contractual compliance not unreasonable - Bellgrove v Eldrige and Tabcorp Holdings Ltd v Bowen Investments Pty Ltd - whether plaintiff failed to mitigate its loss by pursuing claim against second defendant insurer diligently - whether third defendant entitled to indemnity from first defendant insurer - whether certain defects due to design default and thus excluded from cover by terms of insurance policy - where multiple causes of damage and not all causes covered by insurance policy - Wayne Tank principle BUILDING AND CONSTRUCTION - adoption of referee's report - where issue before referee raised questions of law, court to consider the issue afresh - whether developer able to be held liable under s 18C where contractor not in breach of s 18B implied warranties - whether defect within scope of contractor's duty Legislation Cited: Civil Liability Act 2002 (NSW), Pt 4, ss 34, 35 Home Building Act 1989 (NSW), ss 3, 3A, 18B, 18C Supreme Court Rules 1970 (NSW), Pt 72, r 13 Uniform Civil Procedure Rules 2005 (NSW), r 20.24 Cases Cited: Baulderstone Hornibrook Engineering Pty Ltd v Gordian Runoff Ltd [2008] NSWCA 243 Bellgrove v Eldridge [1954] HCA 36; (1954) 90 CLR 613 BestCare Foods Ltd v Origin Energy LPG Ltd [2012] NSWSC 574 Building Insurers' Guarantee Corporation v The Owners - Strata Plan 60848 [2012] NSWCA 375 Chocolate Factory Apartments Pty Ltd v Westpoint Finance Pty Ltd [2005] NSWSC 784 Legal & General Insurance Australia Ltd v Eather (1986) 6 NSWLR 390; (1986) 4 ANZ Ins Cas 60-749 McCarthy v St Paul International Insurance Co Ltd [2007] FCAFC 28; (2007) 157 FCR 402 Owners Corporation SP 72357 v Dasco Constructions Pty Ltd [2010] NSWSC 819; (2010) 77 NSWLR 607 Perpetual Trustee Company Ltd v CTC Group Pty Ltd (No 2) [2013] NSWCA 58; (2013) 86 NSWLR 275 Reinhold v NSW Lotteries Corporation (No 2) [2008] NSWSC 187; (2008) 82 NSWLR 762 Tabcorp Holdings Ltd v Bowen Investments Pty Ltd [2009] HCA 8; (2009) 236 CLR 272 The Craftsmen Restoration & Renovations Pty Ltd v Boland [2008] NSWSC 660 The Owners - Strata Plan No 62930 v Kell & Rigby Holdings Pty Ltd [2010] NSWSC 612 The Owners - Strata Plan No 64757 v MJA Group Pty Ltd [2011] NSWCA 236; (2011) 81 NSWLR 426 Toikan International Insurance Broking Pty Ltd v Plasteel Windows Australia Pty Ltd (1989) 15 NSWLR 641; (1989) 5 ANZ Ins Cas 60-903 Trickett v Queensland Insurance Co Ltd [1936] AC 159; [1936] NZLR 116 Vero Insurance Ltd v Kassem [2011] NSWCA 381; (2011) 86 ACSR 607 Wayne Tank & Pump Co Ltd v Employers Liability Assurance Corporation Ltd [1974] QB 57 Category: Procedural and other rulings Parties: The Owners - Strata Plan No 68372 (Plaintiff) Allianz Australia Insurance Limited ACN 000 122 850 (First Defendant) Vero Insurance Limited ACN 005 297 807 (Second Defendant) GEO Developments Pty Limited ACN 010 621 226 (Third Defendant) Representation: Counsel: GP McNally SC with Ms A Knox (Plaintiff) HJA Neal (First Defendant) R O'Keefe (Second Defendant) M Henry SC with D A Hughes (Third Defendant) Solicitors: ITC Law (Plaintiff) Moray & Agnew (First Defendant) Vardanega Roberts (Second Defendant) Arnold Bloch Leibler (Third Defendant) File Number(s): 2007/266664 Publication restriction: N/A