Bazina v Thomas Coffey Constructions Pty Ltd

In *Bazina v Thomas Coffey Constructions Pty Ltd* [1989] NSWCA 17, the New South Wales Court of Appeal considered an appeal concerning a claim for damages arising from a building dispute. The appellant, Mr Bazina, had entered into a contract with the respondent, Thomas Coffey Constructions Pty Ltd, for the construction of a dwelling. Mr Bazina alleged that the construction was defective and sought to recover damages for the cost of rectifying these alleged defects.

The primary legal issue before the Court of Appeal was whether the trial judge had erred in finding that the respondent had substantially complied with the building contract. This involved an assessment of the nature and extent of the alleged defects and whether they were so significant as to amount to a breach of contract that prevented substantial performance. The court also had to consider the appropriate measure of damages in circumstances where substantial performance was found.

The Court of Appeal affirmed the trial judge's finding of substantial performance. The court reasoned that while some defects were present, they were minor and did not go to the root of the contract. The dwelling was fit for its intended purpose, and the defects could be remedied at a cost that was not disproportionate to the overall contract price. The legal principle applied was that substantial performance of a contract allows the builder to recover the contract price less the cost of rectifying minor defects.

The appeal was dismissed, and the orders of the trial judge were upheld.