Building Insurers' Guarantee Corporation v The Owners - Strata Plan No 57504

The Building Insurers' Guarantee Corporation (BIG Corp) appealed a decision concerning a dispute between BIG Corp and the Owners – Strata Plan No 57504. The core of the dispute involved alleged breaches of a building contract by the builder, specifically relating to work not conforming to the plans and specifications, particularly concerning a waterproofing system. The appeal was heard by Tobias and Campbell JJA, and Handley AJA.

The primary legal issue before the court was whether the waterproofing system installed by the builder was as effective as the system specified in the contract. A related question was whether the issue of the system's effectiveness was one of mitigation, and if so, where the onus lay to prove such mitigation.

The court considered the evidence presented regarding the waterproofing system. It was found that the installed system was not as effective as that specified. The court rejected the argument that the issue was one of mitigation, finding that the builder had failed to meet the contractual standard. The onus was on the builder to demonstrate compliance with the contract, which they had not done.

The appeal was dismissed, and BIG Corp was ordered to pay the costs of the appeal.