NSW Supreme Court Lays Out Principles of Defect Compensation

NSW Supreme Court Lays Out Principles of Defect Compensation

FACTS
The case of The Owners Strata Plan 98726 v Elite Realty Development Pty Ltd (No 3) [2024]
NSWSC 673 involved a dispute over rectification costs for defects in a three-level residential unit
block, consisting of nine units.
The contract for the construction of the apartment block on 19 September 2017 and the works were
completed on 11 December 2018.
The owners’ corporation brought a claim against the builder for breach of domestic warranties,
alleging numerous major and minor defects.
The initial decision was given on 12 April 2024 and the court initially found that the building was
riddled with defects. At the time, the court did not address the question of compensation, but set forth
a further trial date to set damages.
When the date came for trial, the defence did not appear.
ISSUE
How damages should be awarded for the defects?
FINDING

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