Allan v Renfay Projects Pty Ltd

Case [2025] NSWDC 357


District Court


New South Wales

Medium Neutral Citation: Allan v Renfay Projects Pty Ltd [2025] NSWDC 357
Hearing dates: 2-4 September 2025, 10 September 2025
Date of orders: 12 September 2025
Decision date: 12 September 2025
Jurisdiction:Civil
Before: Newlinds SC DCJ
Decision:

(1)   The Plaintiff’s case is dismissed.

(2)   The Plaintiff is to pay the Defendant’s costs of the proceedings.

Catchwords:

BUILDING AND CONSTRUCTION — Residential building work — Claim by homeowner against builder for breach of statutory and contractual warranties

CONTRACT — Proper construction of standard form of Master Builders Association Residential Building Contract

STATUTORY CONSTRUCTION — Home Building Act 1989 (NSW) — Proper construction of s 18B and s 7E warranties as incorporated in contract

STATUTORY CONSTRUCTION — Home Building Act 1989 (NSW) — Proper construction of “relates solely” in Schedule 2 cl 2(2)

STATUTORY CONSTRUCTION — Home Building Act 1989 (NSW) — Proper construction of “specific purpose or result” for purpose of s 18B(1)(f) — Various defects the subject of the claim relating to leaking roof caused by and thus relating solely to defective design — Claim dismissed

STATUTORY CONSTRUCTION — Home Building Act 1989 (NSW) — To what extent can builder be liable for failures caused by design — The Owners – Strata Plan No 66375 v King [2018] NSWCA 170 distinguished and explained

Legislation Cited:

Environmental Planning and Assessment Act 1979 (NSW)

Home Building Act 1989 (NSW) s 7E; s 18B; s 18F; Schedule 2

Cases Cited:

Bellgrove v Eldridge (1954) 90 CLR 613

Blatch v Archer (1774) 98 ER 969

Malec v JC Hutton (1990) 169 CLR 638

Ruxley Electronics v Forsyth [1995] 3 All ER 268

Sellars v Adelaide Petroleum NL; Poseidon Ltd v Adelaide Petroleum NL (1994) 179 CLR 332

The Craftsmen Restoration & Renovations v Boland [2008] NSWSC 660

The Owners – Strata Plan No 66375 v King [2018] NSWCA 170

Tranquility Pools & Spas Pty Limited v Huntsman Chemical Company Australia Pty Limited [2011] NSWSC 75

Willshee v Westcourt [2009] WASCA 87

Category:Principal judgment
Parties: Iain Allan (Plaintiff)
Renfay Projects Pty Ltd (Defendant)
Representation:

Counsel:
M Klooster (Plaintiff)
I Chatterjee (Defendant)

Solicitors:
Somerville Legal (Plaintiff)
G & S Law Group (Defendant)
File Number(s): 2023/155240
Publication restriction: Nil

JUDGMENT

Introduction

  1. Iain Allan (“the Plaintiff”) claims damages against Renfay Projects (“the Defendant”) arising out of what he alleges are a series of breaches of express terms of a written contract for residential building work (“the Contract”) and/or breaches of the statutory warranties in s 18B of the Home Building Act 1989 (NSW) (“Home Building Act”).

  2. The parties entered into a fixed price contract in the sum of $178,185 on 11 February 2016 for residential building works. The form of contract used was the standard Master Builders Association form of contract for residential building work.

  3. For all intents and purposes, the statutory claim is the same as the contractual claim because the terms said to have been breached by the Defendant are the statutory warranties incorporated by force of…

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AGLC
Allan v Renfay Projects Pty Ltd [2025] NSWDC 357
Case
[2025] NSWDC 357
Decision Date

CaseChat Overview and Summary

The dispute in Allan v Renfay Projects Pty Ltd arose when homeowner Allan alleged that the builder Renfay Projects Pty Ltd had breached statutory and contractual warranties in the construction of a residential building. The case was heard and determined by the NSW Supreme Court. The homeowner sought damages for various defects, including a leaking roof, which he attributed to defective design. The builder denied liability, arguing that the defects did not arise from the design but were instead due to other factors.

The primary legal issues before the court were the proper interpretation of the statutory warranties under the Home Building Act 1989 (NSW) as incorporated in the Master Builders Association Residential Building Contract, and the extent to which the builder could be held liable for failures caused by design. Specifically, the court had to determine the meaning of the phrase "relates solely" in Schedule 2 cl 2(2) of the Act and the concept of "specific purpose or result" in s 18B(1)(f). The court also had to consider the extent to which the builder could be held responsible for design-related failures, drawing on the precedent set in The Owners – Strata Plan No 66375 v King.

The court found that the defects in question, particularly the leaking roof, were not solely attributable to defective design but were influenced by other factors. Therefore, they did not "relate solely" to the design as required by the statutory provisions. The court held that the builder could not be held liable for failures that were not exclusively design-related. It distinguished and explained the earlier case of The Owners – Strata Plan No 66375 v King, clarifying the scope of builder liability under the Act. Based on this reasoning, the court dismissed the homeowner's claim and ordered that the homeowner pay the builder's costs of the proceedings.

Orders

Orders of the court

(1) The Plaintiff’s case is dismissed.

(2) The Plaintiff is to pay the Defendant’s costs of the proceedings.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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