Owners Corporation Court of Appeal Building Defects Win!

Adding Further Building Defects to an Existing Claim

On 17 April 2023, the New South Wales Court of Appeal in the case of Parkview Constructions Pty Ltd v The Owners – Strata Plan No. 90018 (Parkview), confirmed that an owners corporation can add new defects to an existing claim if the statutory warranty period in the Home Building Act 1989 (HBA) has not expired.

Supreme Court Amends Building Defects Statement of Claim

In the Parkview case, in the Supreme Court, the owners corporation sought to amend its Statement of Claim to add new defects. The Supreme Court granted permission to the owners corporation to add new defects to its existing claim.  The new defects that were added were not manifest when the owners corporation-initiated proceedings in the Supreme Court. Parkview appealed against the decision of the Supreme Court to the Court of Appeal.

Court of Appeal Win for Owners Corporation

The Court of Appeal upheld the decision of the Supreme Court by confirming that the owners corporation was entitled to add new defects to its existing claim and the addition was not a new cause of action but part of a single cause of action being a breach by the builder of the statutory warranties under the HBA.

Parkview argued that the addition of new defects introduced a “new” cause of action, and those new causes of action were not the same as the existing cause of action that was on foot. The Court of Appeal rejected that argument. It held that in a conventional case for breach of contract, there is a single cause of action.  That cause of action is complete when a defective structure is provided irrespective of the number of ways in which those defects have manifested themselves.  The Court of Appeal said that even though the HBA has created inroads into common law principles, however, those changes brought by the HBA do not alter the nature of the owners corporation’s claim.

Furthermore, the Court of Appeal said that a successor in title like an owners corporation sues a builder or a developer for statutory warranties under the HBA. The proceeding is based upon a breach of a single contract.  An amendment does nothing more than introduce further departures from the building contract that the builder and the developer had promised and that does not give rise to a new cause of action because the cause of action remains one, that is for a breach of the same contract.  Accordingly, the Court of Appeal held that the owners corporation’s amendments seeking to add new defects did not introduce a new cause of action and so the owners corporation was entitled to add them to its existing claim.

A Victory for Owners Corporations in NSW

This confirmation from the Court of Appeal is a great victory for owners corporations in NSW and it reconfirms the willingness of the judiciary to protect owners in strata schemes wherever it may be necessary.


Faiyaaz Shafiq Lawyer JS Mueller & Co Lawyers specialising in Strata Law

Faiyaaz Shafiq I LLB GDLP I Lawyer

A highly experienced and respected, results driven Litigation Lawyer specialising in the areas of strata litigation, building & construction, commercial litigation, debt recovery, personal and company insolvency. Profile I Linked

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For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.




Damages Claims Against Strata & Building Managers

Can a lot owner now make claims against building and strata managers for negligence?

A recent decision of the Appeal Panel of NCAT has not ruled out the possibility that NCAT may be able to award damages to a lot owner for negligence by a strata manager and/or building manager of a strata scheme.

What did the Appeal Panel find, based upon previous decisions considering the Tribunal’s powers?

Here we share the case: Damages Claims Against Strata Managers and Building Managers – NCAT Opens the Door

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For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.




Do You Have Strata Buildings Less than 6 Years Old?

The NSW Government has announced a win for strata managers and owners corporations who have buildings under 6 years old.

You now have an avenue to pursue the rectification of any common property for major building defects, subject to eligibility.

Here we share the following:

  • Key information
  • What is Project Intervene?
  • Who is Eligible?
  • What is classified as common property?
  • What is a serious defect?
  • How do I register for ‘Project Intervene’?
  • Related information

For specific information visit NSW Government ‘Project Intervene

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For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.




Unauthorised Renovations Works: Unscrambling the Egg

The perennial problem of owners who carry out unauthorised renovations works to common property continues to rear its head.

Here we look at the different strategies for dealing with unauthorised renovations works and explore the problems that arise when an owners corporation ignores the problem for too long.

What are the Different Ways to Deal with Unauthorised Renovations?

  • The Aggressive Approach
  • A Stern Approach
  • Someone Else’s Problem Approach
  • A Collaborative Approach
  • The Ostrich Approach

In this article we look at the different approaches and lessons learned Unauthorised Renovations and how to deal with them!

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For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.




Electric Vehicle (EV) By-laws – Seven By-law Considerations!

 

What do you need to consider in your EV Strata By-law?

 

EV by-law’s prepared by our team permits all owners to install electric vehicle chargers in their car spaces or garages and connect those chargers by cabling leading to the switchboard.

However, there are a number of matters an owners corporation needs to consider when adopting the by-law and permitting owners to install electric vehicle chargers.

Seven EV By-law Considerations

 

  1. Is there sufficient room on the switchboard for additional circuit breakers to be installed for each electric vehicle charger installed by an owner?
  2. Is the existing electrical infrastructure on common property sufficient to handle the additional loads generated by electrical vehicle chargers when they charge EVs? If not, who will be liable to pay for the upgrade of that infrastructure?
  3. Is it possible for electric vehicle chargers to be separately metered and charged to the owner’s account instead of the owners corporation paying for the electricity that is used by the EV chargers?
  4. Do the EV chargers and their use create any risks to the health and safety of other residents?
  5. Are there sufficient cable trays in place in the garage or other areas to accommodate the cabling that will need to be run between electric vehicle chargers in lot owners’ garages and the switchboard.
  6. Will the electric vehicle chargers be compatible with any load management system in place and the electrical infrastructure that exists in the building?
  7. Is it possible for limitations to be placed on the loads drawn by electric vehicle chargers, for example, to limit electric vehicle chargers to single phase chargers drawing no more than 10amps power?

JS Mueller & Co Lawyers EV by-laws deal with some of these considerations and often is tailored to deal with most of them.


CLICK HERE FOR ELECTRIC VEHICLE (EV) BY-LAWS

 

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For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.




Strata NSW COVID-19 Laws Extended!

Strata NSW Covid-19 Laws Extended

To help strata and community associations to continue to manage their responsibilities of COVID-19 the NSW Government has extended the timeline for these laws to remain in place.

Laws were previously added to the Strata Schemes Management Regulation 2016 and the Community Land Management Regulation 2021 in response to the NSW COVID-19 outbreak.

These laws included allowing voting at remote meetings to be held electronically by tele or video conferencing, email or other electronic means. It is important to note that these laws will still apply even if a motion has not been passed.

New COVID-19 Strata Law Deadlines

Initially these temporary laws were to end on 31 May 2022 however they will now remain in place until 30 September 2022.

For further information visit: Strata Schemes Management Amendment (COVID-19) Regulation 2022 and the Community Land Management Amendment (COVID-19) Regulation 2022.

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For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.




Court Widens People Liable for Building Defects!

Building Defects – Who is Liable?

Can the director of a building company that is responsible for the construction of a new strata building be held personally liable for defects in the building?

The Design and Building Practitioners Act 2020 (Act) was introduced in 2020 and provides that a duty of care is owed by “a person who carries out construction work” to an owners corporation to avoid defects in the construction of the building. But who exactly is classified as “a person who carries out construction work”?

Is “a person who carries out construction work” limited to the entity that was contracted to do the work such as the builder or does it also include all persons involved in completing the project such as a supervisor, project manager and even the director of the builder’s company or the developer?

Personal Liability of Project Manager

A recent decision by the Supreme Court of NSW has found that the husband of a director of a building company was personally liable for defective building works done by the builder under the Act because he acted as the project manager and supervisor of the builder: see Goodwin Street Developments Pty Ltd atf Jesmond Unit Trust v DSD Builders Pty Ltd (in liq) [2022] NSWSC 624.

In this case, the builder was placed into liquidation and the developer brought proceedings against Mr Roberts the husband of a director of the builder.  According to the Court, Mr Roberts was a project manager of the builder, supervising construction works for the project. Therefore, Mr Roberts was found to be “a person who carried out construction work” under the Act and was found liable for the defects.

Liability of Developer

In another recent Supreme Court case, an owners corporation sued the builder and developer for damages arising from defects.

The Court found, among other things, that a developer could be held liable for defects under the Act as a person who carried out construction work.

The Court also said that under the Act, a person could be liable for defects if they could (but did not necessarily) have control of the building works: see The Owners – Strata Plan No 84674 v Pafburn Pty Ltd [2022] NSWSC 659.

Conclusion

These cases have far reaching consequences for directors, supervisors, project managers, developers and sub-contractors involved in construction work who all could be liable to owners corporations for defects under the Act, even for work done up to 10 years ago (as the Act is retrospective). However, for those persons to be liable, it must be proven that they have had or could have had some control over the building works.

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For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.




Strata, Rain, Water Leaks and Common Property Fixes

NSW has experienced unprecedented wet weather this year which has made it difficult to find contractors who are able to repair common property defects in strata blocks.

However, the duty to repair common property is a strict one and there are limited exceptions to that rule. So does the recent inclement weather provide an owners corporation with a lawful excuse for delaying essential repairs and maintenance?

In this article we take a closer look at the responsibility of an owners corporation to repair common property… Rain, Water Leaks, Delays, Tenants and Common Property Fixes.

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For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.




Common Property Changes: What Resolution is Required?

What type of resolution must an owners corporation pass in order to authorise a change to common property?

The strata legislation allows an owners corporation to replace common property with the authority of an ordinary resolution.

But the legislation also says that an owners corporation cannot upgrade common property unless it first passes a special resolution.

Where is the line drawn between replacing and improving common property?

In this article we take a closer look at this much vexed issue: Changing Common Property_ An Ordinary or Special Resolution?

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For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.




New Mandatory AGM Digital Reporting for Strata Schemes!

Commencing 30 June 2022, the NSW Government will launch phase 2 of the ‘Strata Hub’, revolutionising strata management which means new reporting requirements for all strata schemes.

The ‘Strata Hub’ phase 1 initially went live on 31 July 2021 launching the Strata Building Bond and Inspections Scheme (IBBIS) functions to be dealt with through the ‘Strata Hub’.

What is ‘Strata Hub’ phase 2?

  • ‘Strata Hub’ is a central point of information for all NSW’s strata schemes
  • Information held on the ‘Strata Hub’ will increase transparency and access to information for Strata Schemes
  • Purchasers will be able to obtain information about Strata Schemes for the purpose of potential purchases
  • Current owners will be able to obtain documents/information such as fire inspection and environmental building reports
  • Regulators will be able to monitor a scheme’s maintenance and building defects
  • People working in strata related industries will now have easier access to much needed information

When does ‘Strata Hub’ phase 2 commence?

  • ‘Strata Hub’ commences 30 June 2022
  • Your Strata Schemes must be registered on the portal by 30 September 2022

What are the new reporting requirements for strata schemes?

  • Within 3 months of an AGM, strata schemes will be required to lodge a return with the Office of Fair Trading (OFT), providing key details about the scheme
  • Payable to the OFT annually, a fee of $3 per lot is required to cover administration costs
  • For any updates/corrections to existing information you are obliged to update that information within 28 days from the date the secretary or managing agent became aware of the change
  • If you do not comply fines of up to $2,200 can be imposed

The information stored on ‘Strata Hub’ will be divided into 2 categories:

  • Publicly available information
  • Other information available to limited groups

Would you like further information and assistance?

  • Strata Schemes Management Amendment (Information) Regulation 2021 (the Information Regulation) on the NSW Legislation website
  • A full list of the information required for the report to lodge with the OFT, and recommendations for where it can be sourced, is available here
  • For any further assistance you may also contact specialist strata lawyers, JS Mueller & Co Lawyers here

‘Strata Hub’ is intended to be a central access point for residential strata buildings that will make it easier for buyers, owners, regulators, and those working in strata related industries to get the required information they need.

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For all strata law advice including by-laws, building defects and levy collections contact our specialist NSW and Sydney strata lawyers here or call 02 9562 1266, we’re happy to assist.