Case Reports

Negligence - Duty of care - Design of premises - Fitness for purpose

In CJD Equipment v A&C Constructions [2009] NSWSC 1362 (10 December 2009),  the Supreme Court of New South Wales considered a number of issues (17 in total) arising from the construction of premises for the Applicant, including a claim for damages for negligence and misleading and deceptive conduct.  The Court applied the non-exhaustive list of factors set out by McHugh J in Perre v Apand Pty Ltd [1999] HCA 36; 198 CLR 180; 64 ALR 606; 73 ALJR 1190 (12 August 1999) at 220 [105] in determining whether a duty of care to avoid economic loss existed.  Held: Respondent owed duty of care as undertook design obligation and Applicant relied on Respondent.  Subcontractors owed no duty of care as Applicant failed to prove reliance on drawings by subcontractors and subcontractors had no knowledge.  Application granted in part. Applicant entitled to cost of rectifying non-compliance with building code, but partially responsible for damages resulting from the cost of rectifying the internal slap.