Folkes v M J G Constructions (Aust) Pty Ltd

Folkes sued M J G Constructions (Aust) Pty Ltd for damages relating to the sale of his property and the subsequent construction of a house on the property. The case was heard in the Supreme Court of South Australia. The central legal issues in the case were whether the builder was negligent in the construction of the house and whether there was a breach of contract in the sale of the property. The court had to decide if the builder's actions constituted negligence and if the sale of the property was handled correctly according to the terms of the contract.

The court found that the builder was indeed negligent in the construction of the house, as there were several defects and breaches of building standards that were not rectified. The court also found that the sale of the property was handled improperly, as there were misrepresentations made regarding the condition of the house and the property. The court determined that the builder's negligence and the improper handling of the sale constituted a breach of contract. Therefore, the builder was liable for damages for both the construction defects and the misrepresentations made during the sale.

The court ordered M J G Constructions (Aust) Pty Ltd to pay Folkes $365,000 in damages for the construction defects and an additional $50,000 for the misrepresentations made during the sale. The court also ordered the builder to rectify the defects in the construction within a specified timeframe.