Betta Build Group Pty Ltd v El Baba

The case of Betta Build Group Pty Ltd v El Baba involved a dispute over the quality of construction works performed by Betta Build on a residential property owned by El Baba. The matter was heard in the Supreme Court of New South Wales. The primary issue for determination was whether Betta Build had breached statutory warranties under the Home Building Act 1989 (NSW) by performing defective or incomplete works. This led to a broader inquiry into the appropriate measure of damages, considering the sale of the dwelling to a purchaser and the reasonableness of the proposed rectification works by El Baba’s expert. Additionally, the court had to decide on the referral of the issue of the costs of rectification to a referee.

The court first examined the statutory warranties and whether Betta Build had fulfilled its obligations under the Home Building Act. It assessed the evidence regarding the quality of the construction works and whether they were defective or incomplete. The court then turned to the measure of damages, particularly whether the Bellgrove v Eldridge approach was applicable in this context. This involved evaluating the sale of the dwelling and the expert’s proposed rectification works. The court considered the reasonableness of these works and their alignment with the statutory warranties.

In determining the outcome, the court concluded that Betta Build had indeed breached the statutory warranties by performing defective works. The court found the Bellgrove v Eldridge measure of damages applicable and assessed the proposed rectification works by El Baba’s expert as reasonable and appropriate. The court referred the issue of the costs of rectification to a referee for further determination, ensuring a detailed and impartial assessment. Ultimately, the court ordered Betta Build to rectify the defective works and pay for the reasonable costs associated with the rectification, as determined by the referee.