McKenzie v Miller

The appellants, McKenzie and Miller, appealed to the Court of Appeal of New South Wales against orders made by Judge Balla in the District Court. The dispute concerned an agreement for the building and construction of a dwelling, where the final costs of construction varied significantly from the original estimate provided by the respondent.

The central legal issues before the Court of Appeal were whether the respondent had breached the building agreement, whether he had acted negligently, and whether he had contravened section 42(1) of the Fair Trading Act 1987. The court was also required to consider the weight to be given to expert evidence presented during the proceedings.

The Court of Appeal found that the respondent had breached the agreement by failing to provide services as stipulated in clauses B1.01 and B1.04, and by contravening section 42(1) of the Fair Trading Act 1987. Furthermore, the court determined that the respondent had breached his duty of care, both under the agreement and at common law, in relation to the provision of his initial construction cost estimate and his subsequent failure to provide an updated estimate. The appeal was allowed, the previous orders were set aside, and judgment was entered for the appellants on liability. The proceedings were remitted to the District Court for the assessment of damages only.