Chapman v Taylor

The parties to the appeal were Chapman (the builder) and Taylor (the homeowners). The dispute concerned whether a building contract had been frustrated due to the builder suffering a severe brain injury. The matter came before the Court of Appeal of New South Wales.

The primary legal issue before the court was whether the building contract was frustrated by the builder's incapacitation. This involved considering the duration and nature of the builder's inability to perform his contractual obligations and whether this rendered the contract fundamentally different from what was originally agreed. The court also considered whether there was an error of law by the Consumer, Trader and Tenancy Tribunal (CTTT) and the applicability of home building insurance.

The Court of Appeal found that the builder's incapacitation did not frustrate the contract. The court reasoned that the builder's inability to work was temporary, and the contract did not specify a fixed completion date, nor was time of the essence. Therefore, the delay caused by the injury did not fundamentally alter the nature of the contract. The court also found that the CTTT had erred in law by finding the contract frustrated.

The Court of Appeal allowed the appeal, setting aside the previous order and dismissing the summons with costs. Mr. and Mrs. Taylor were ordered to pay Mr. Chapman's costs of the appeal.