SUPREME COURT OF SOUTH AUSTRALIA
(Court of Appeal: Civil)
DUNCAN v BERT FARINA CONSTRUCTIONS PTY LTD
[2024] SASCA 67
Judgment of the Court of Appeal
(The Honourable Justice Doyle, the Honourable Justice Bleby and the Honourable Justice Blue)
30 May 2024
STATUTES - ACTS OF PARLIAMENT - INTERPRETATION
LIMITATION OF ACTIONS - LIMITATION OF PARTICULAR ACTIONS
This is an appeal from the primary judge’s determination of a preliminary question of law.
The appellants (owners) issued proceedings against the respondent (builder), claiming damages for defective building work in the construction of their house. The owners alleged breaches of statutory warranties under s 32(2) of the Building Work Contractors Act 1995 (SA) (‘BWCA’) and common law negligence.
Section 32(5) of the BWCA establishes a five year limitation period for claims made under s 32(2) of the BWCA. Section 73 of the Development Act 1993 (SA) (‘DA’) (and its successor, s 159 of the Planning, Development and Infrastructure Act 2016 (SA) (‘PDIA’)) contain a 10 year limitation period for actions for damages for economic loss or rectification costs resulting from defective building work.
At first instance, the owners pleaded that the time limit for commencing proceedings for breach of statutory warranties under s 32(2) of the BWCA is 10 years from the date of completion of the building work by reason of s 73 of the DA. The builder pleaded in its defence that the limitation period applicable under s 32(2) of the BWCA is five years, pursuant to s 32(5) of the BWCA. The primary judge generally accepted the builder’s contention and held that, in proceedings for damages for defective building work relying on breach of a statutory warranty under s 32(2) of the BWCA, a respondent is able to elect to plead the expiry of the five year warranty under s 32(5) BWCA as a defence, and, properly read, s 73 of the DA, and its successor s 159 of the PDIA, do not displace the shorter five year limitation period in s 32(5) of the BWCA. The owners appeal the primary judge’s determination.
Held, (per the Court), dismissing the appeal:
1.The relevant textual, contextual and purposive considerations support the construction of s 73 of the Development Act 1993 (SA) and s 159 of the Planning, Development and Infrastructure Act 2016 (SA) as imposing a 10 year long stop limitation period in respect of claims for economic loss or rectification costs arising out of defective building work which does not operate so as to displace the five year time limit for claims based on the statutory warranties in respect of domestic building work under s 32 of the Building Work Contractors Act 1995 (SA).
Builders Licensing Act Amendment Act 1983 (SA); Builders Licensing Act 1967 (SA); Builders Licensing Act 1986 (SA) pt 5; Building Act 1992 (NT) ss 160-161; Building Act 1993 (Vic) s 134; Building Act 2004 (ACT) s 142(3); Building Act 2016 (Tas) s 327; Building Work Contractors Act 1995 (SA) ss 3, 32(1), 32(2), 32(3), 32(5), 32(6), 37(2),…
Continue reading Duncan v Bert Farina Constructions Pty Ltd
Sign in free to access the full text
- AGLC
- Duncan v Bert Farina Constructions Pty Ltd [2024] SASCA 67
- Case
- [2024] SASCA 67
- Decision Date
CaseChat Overview and Summary
The central legal issue before the court was the interplay between the limitation period for claims concerning defective building work under the Development Act (DA) and the Planning, Development and Infrastructure Act (PDIA), and the limitation period for breaches of statutory warranties under the BWCA. Specifically, the court had to determine whether section 73 of the DA and section 159 of the PDIA, which provide a 10-year limitation period for certain building actions, operated to displace the shorter five-year limitation period prescribed by section 32(5) of the BWCA for domestic building work. The Owners argued that the longer 10-year period applied, rendering their claim within time, while the Builder contended that the five-year period under the BWCA was the applicable limit, meaning the claim was out of time.
The court reasoned that while sections 73 of the DA and 159 of the PDIA create a 10-year "long stop" limitation period for actions for damages for economic loss or rectification costs resulting from defective building work, they do not operate to displace the specific five-year limitation period for claims based on statutory warranties for domestic building work under section 32 of the BWCA. The court examined the textual considerations of section 73, noting its application to actions for damages for economic loss or rectification costs and its provision that "no action... can be commenced" after the 10-year period, despite other Acts. However, the court concluded that these provisions were intended to operate concurrently with, and as a long stop to, other applicable limitation periods, rather than to exclude shorter, more specific periods like that found in section 32(5) of the BWCA.
The court's conclusion was that the Builders' construction of sections 73 of the DA and 159 of the PDIA, as operating as a 10-year long stop but not displacing the five-year limit under the BWCA, was correct. Consequently, the Owners' claim for breach of statutory warranties under section 32 of the BWCA was found to be statute-barred. The court did not need to determine whether these sections might displace the six-year limitation period for tortious and contractual claims under the Limitation of Actions Act.
Orders
Orders of the court
Full text does not contain this section.
Background
Background to the litigation
Evidence
Evidence Before The Court
Full text does not contain this section.
Decision
Reasons for decision
Ratio Decidendi
Legal Principle Established
In the present case, there is a constructional choice to be made between the Builder’s construction of s 73 of the DA and s 159 of the PDIA (which has them operating concurrently with s 32(5) of the BWCA, and as mere long stop limitation provisions where they apply), and the Owners’ construction (which has them operating to the exclusion of the shorter limitation periods such as the one appearing in s 32(5) of the BWCA). In considering the Owners’ challenges on appeal to the primary judge’s preference for the Builder’s construction, it is convenient to commence by addressing the various textual considerations, before then turning to the broader contextual and purposive considerations relied upon by the parties.Textual considerations It is appropriate to commence with the text of s 73 of the DA, which has been set out earlier in these reasons, and is in identical form to s 159 of the PDIA. This is not, however, to overlook the relevance of broader contextual and purposive considerations throughout the construction process. These reasons should not be understood as reflecting an entirely sequential process of reasoning. In general terms, s 73 creates a non-extendable 10 year time limit in respect of certain types of actions for damages for defective building work. However, when considering the potential application of this section in the context of the present case, and in particular its impact upon the operation of the shorter five year limitation period in s 32(5) of the BWCA, several aspects of the text of s 73(1) warrant close attention. These include that it:·applies to actions for “damages for economic loss or rectification costs resulting from defective building work (including an action for damages for breach of statutory duty)”;·is expressed in terms that “no action … can be commenced” after the 10 year period; and·is expressed to apply “[d]espite” the Limitation of Actions Act or any other Act or law. As to the first of these textual considerations, the Owners’ claim under s 32 of the BWCA is an action of the type contemplated by s 73 of the DA. The claim alleges breaches of the s 32(2) statutory warranties based upon defective building work. The Works, as well as being “domestic building work” for the purposes of the BWCA, are also “building work” for the purposes of the DA. The claim seeks monetary relief. While the monetary relief available for the breach of a s 32(2) statutory warranty is described as “compensation” (s 37(6)(b)), this is encompassed within an action for “damages” for the purposes of s 73 of the DA. Further, the compensation sought is compensation for “economic loss or rectification costs”. It follows from the matters set out in the preceding paragraph that s 73 of the DA is capable of applying to claims, such as the one brought by the Owners in the underlying proceedings, for compensation for breach of a statutory warranty under s 32(2) of the BWCA. However, determining the practical significance of this conclusion requires consideration of the second and third textual considerations identified above.