Walker Group Constructions Pty Ltd v Tzaneros Investments Pty Ltd [2017] NSWCA 27

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Walker Group Constructions Pty Ltd v Tzaneros Investments Pty Ltd [2017] NSWCA 27 Hearing dates: 8 August 2016 Date of orders: 01 March 2017 Decision date: 01 March 2017 Before: Bathurst CJ at [1]; Beazley P at [241]; Gleeson JA at [242]. Decision: (1) Appeal dismissed. (2) Order that the appellant pay the first respondent's costs of the appeal. Catchwords: CONTRACT – building and construction contracts – defects in concrete pavements at container terminal at Port Botany – breach of warranty admitted – breach arose prior to acquisition by first respondent of leasehold over terminal – whether accrued cause of action for breach assigned to first respondent – whether reference to surrounding circumstances permissible in construction of deed of assignment – whether first respondent acquired terminal with knowledge of defects and therefore suffered no loss as a consequence of them – whether first respondent entitled to recover damages for cost of full replacement of concrete pavement – whether damages awarded to first respondent ought to have been reduced for betterment

PROCEDURE – costs – whether costs should not have been awarded on an indemnity basis Legislation Cited: Conveyancing Act 1919 (NSW), s 12 Home Building Act 1989 (NSW) s 18B Trade Practices Act 1974 (Cth) Uniform Civil Procedure Rules 2005 (NSW), r 42.14 Cases Cited: 260 Oxford Street Pty Ltd v Premetis [2006] NSWCA 96 Aberdeen Asset Management Ltd v Challenger [2002] NSWCA 245 Allianz Australia Insurance Ltd v Waterbrook at Yowie Bay Pty Ltd [2009] NSWCA 224 Bannister & Hunter v Transition Resort Holdings (No 3) [2013] NSWSC 1943 Bellgrove v Eldridge (1954) 90 CLR 613; [1954] HCA 36 British Westinghouse Electric and Manufacturing Company Ltd v Underground Railways Company of London Ltd [1912] AC 673 Burger King Corporation v Hungry Jack's Pty Ltd [2001] NSWCA 187 Calderbank v Calderbank [1975] 3 WLR 586 Codelfa Constructions Pty Ltd v State Rail Authority of NSW (1982) 149 CLR 337; [1982] HCA 24 Coombes v Roads & Traffic Authority (NSW) (No 2) [2007] NSWCA 70 Cordon Investments Pty Ltd v Lesdor Properties Pty Ltd [2012] NSWCA 184 De Cesare v Deluxe Motors Pty Ltd (1996) 67 SASR 28 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; [2014] HCA 7 Esso Australia Ltd v Australian Petroleum Agents' & Distributors' Association (1999) 3 VR 642 Ettinghausen v Australian Consolidated Press Ltd (1995) 38 NSWLR 404 Gee Dee Nominees Pty Ltd v Ecosse Property Holdings Pty Ltd [2016] VSCA 23 Geroff & Ors v CAPD Enterprises [2003] QCA 187 Hyder Consulting (Australia) Pty Ltd v Wilhelmsen Agency Pty Ltd [2001] NSWCA 313 Lambert v Lewis [1982] AC 225 Linden Garden Trust Ltd v Lanester Sludge Disposals [1994] 1 AC 85 Mount Bruce Mining Pty Limited v Wright Prospecting Pty Limited (2015) 256 CLR 104; [2015] HCA 37 Offer-Hoar v Larkstore Ltd [2006] 1 WLR 2926; [2006] EWCA Civ 1079 Pacific Brands Sport and Leisure Pty Ltd v Underworks Pty Ltd (2006) 149 FCR 395 Regency Media Pty Ltd v AAV Australia Pty Ltd [2009] NSWCA 368 Renold Australia v Fletcher Insulation [2007] VSCA 294 Righi v Kissane Family Pty Ltd [2015] NSWCA 238 Scott Carver Pty Ltd v SAS Trustee Corporation [2005] NSWCA 462 Tabcorp Holdings Ltd v Bowen Investments Pty Ltd (2009) 236 CLR 272; [2009] HCA 8 Tyco Australia Pty Ltd v Optus Networks Pty Ltd [2004] NSWCA 333 Tzaneros Investments Pty Limited v Walker Group Constructions Pty Limited [2016] NSWSC 50 Tzaneros Investments Pty Ltd v Walker Group Constructions Pty Ltd (No 3) [2016] NSWSC 526 UI International Pty Ltd v Interworks Architects Pty Ltd [2008] 2 Qd R 158; [2007] QCA 402 Westpoint Management Ltd v Chocolate Factory Apartments Ltd [2007] NSWCA 253 Category: Principal judgment Parties: Walker Group Constructions Pty Ltd (ACN 097 303 716) (Appellant)