Lockton v NorthBuild Constructions Pty Ltd

Lockton (the plaintiff) brought proceedings against NorthBuild Constructions Pty Ltd (the defendant) in the High Court of Australia. The dispute concerned the plaintiff's claim for damages arising from alleged breaches of contract and negligence by the defendant in relation to building works undertaken at the plaintiff's property.

The High Court was required to determine whether the plaintiff's claim was barred by the operation of section 14 of the *Limitation of Actions Act 1974* (Qld), which imposes a time limit for bringing actions for breach of contract and negligence. Specifically, the court had to consider whether the cause of action accrued at the time of the breach or at the time the damage became apparent to the plaintiff.

Gummow and Kirby JJ, in their joint judgment, affirmed the established principle that a cause of action for breach of contract accrues at the time of the breach, irrespective of when the damage resulting from that breach becomes known to the plaintiff. They applied this principle to the facts, finding that the relevant breaches of contract occurred more than six years prior to the commencement of proceedings, thus barring the plaintiff's contractual claim under section 14 of the *Limitation of Actions Act 1974* (Qld). The court also considered the claim in negligence, noting that while the accrual of a cause of action in negligence is generally linked to the occurrence of damage, the plaintiff's evidence did not establish that the damage was not discoverable within the limitation period.

The High Court allowed the appeal, setting aside the orders of the lower court and entering judgment for the defendant.