Magog (No 15) Pty Ltd v The Body Corporate for the Moroccan

In the matter of Magog (No 15) Pty Ltd v The Body Corporate for the Moroccan, the plaintiff sought damages for breaches of duty that resulted in water damage to their property. The case was heard in the Supreme Court of New South Wales. The primary issue before the court was whether the defendant had breached their statutory duties under the Strata Schemes Management Act 1996 and whether such breaches constituted a failure to exercise reasonable care and skill, leading to economic loss. Furthermore, the court had to determine if the defendant owed a duty of care to the plaintiff, considering the foreseeability of harm and the relationship between the parties.

The court found that the defendant had indeed breached their statutory duties by failing to adequately maintain the building's water system, which directly caused water damage to the plaintiff's property. The court held that the defendant's negligence constituted a failure to exercise reasonable care and skill, as required by the statutory provisions. The plaintiff's economic loss was a foreseeable consequence of the defendant's negligence, and the proximity between the parties was sufficient to establish a duty of care. Therefore, the court concluded that the defendant's actions breached the duty of care owed to the plaintiff.

The court awarded damages to the plaintiff, comprising of the costs of repairs, rental abatement losses, and interest. Specifically, the plaintiff was awarded $12,628.12 in respect of repair costs, plus interest of $8,192.71, and $230,042.00 for rental abatement losses, along with interest of $95,033.62. Additionally, the defendant was ordered to pay the plaintiff's costs of and incidental to the trial, to be assessed.