Llamas v Rockwall Constructions Pty Ltd; Rockwall Constructions Pty Ltd v Llamas

Rafael and Kay Llamas engaged Rockwall Constructions Pty Ltd to construct a residential building in Sydney. Upon completion, the couple identified significant defects and incomplete work, leading to a dispute over the contract. The case was heard in the NSW Civil and Administrative Tribunal (NCAT). The primary legal issues before the tribunal were the availability of damages for the homeowner's repudiation of the contract due to the contractor's defective and incomplete work, and the appropriate remedy and assessment of damages.

The tribunal found that the homeowners were justified in repudiating the contract due to the contractor's failure to complete the work to an acceptable standard. It was determined that the homeowners were entitled to damages for the cost of completing the work to an acceptable standard and for any diminution in the value of the property. The tribunal held that the homeowners were entitled to the full contract price minus the value of the work completed to an acceptable standard. The tribunal assessed the damages and ordered the contractor to pay the homeowners the sum of $58,908.85. The tribunal also dismissed the contractor's cross-claim against the homeowners for non-payment of the contract price. The contractor was ordered to pay the homeowners' costs as agreed or assessed. If either party sought an alternative or varied costs order, a written application was required to be made to the tribunal within 14 days of the decision.