Henville & Anor v Walker

In *Henville & Anor v Walker*, the High Court of Australia considered an appeal from the Supreme Court of Queensland concerning a dispute over the construction of a dwelling. The appellants, Mr. and Mrs. Henville, had engaged the respondent, Mr. Walker, to build their home. Following completion, the Henvilles alleged that the dwelling was not constructed in a good and workmanlike manner and that the materials used were not of merchantable quality, leading to a claim for damages.

The central legal issue before the High Court was whether the respondent, as a builder, owed a duty of care to the appellants, the owners of the dwelling, to exercise reasonable skill and care in the performance of the building contract. Specifically, the court had to determine if this duty extended beyond the contractual obligations to encompass a broader tortious duty of care, and if so, what the scope of that duty was.

The High Court, in a joint judgment delivered by McHugh and Hayne JJ, affirmed that a builder does owe a duty of care to the owner of a dwelling to exercise reasonable skill and care in the performance of the building contract. This duty arises in tort and is not confined by the terms of the contract itself. The court reasoned that the builder's work directly impacts the owner's property and that it is foreseeable that defective work could cause economic loss to the owner. The principles of negligence, as established in cases concerning the recovery of economic loss arising from defective work, were applied. The court found that the respondent had breached this duty of care by failing to construct the dwelling in a proper and workmanlike manner and by using materials of merchantable quality.

The High Court dismissed the appeal, upholding the decision of the Supreme Court of Queensland. The respondent was therefore entitled to recover damages for the cost of rectifying the defects in the dwelling.