Olindaridge Pty Ltd and Anors v Tracey

Olindaridge Pty Ltd and others appealed against the decision of the Victorian Civil and Administrative Tribunal (VCAT) that had dismissed their claim for damages for pure economic loss against Tracey. The dispute arose from alleged defects in the construction of a residential property, and the respondents were the builders and developers responsible for the construction. The appellants sought damages for alleged negligence and breach of contract. The appellants argued that Tracey, who was trading as a licensed construction company, owed them a common law duty of care in negligence for the pure economic loss they suffered. The court had to determine whether the builder owed the same duty of care in negligence for pure economic loss as the company.

The court noted that the Tribunal had determined that a duty was owed, but it had been breached only by the company and not by Tracey. The court examined the nature of the relationship between Tracey and the company, and whether Tracey owed a duty of care in negligence for pure economic loss. The court held that Tracey did not owe the same duty of care as the company because there was no direct contractual relationship between Tracey and the appellants. The court further held that the appellants' claim for damages for pure economic loss was statute-barred.

The appeal tribunal found that the appellants had not demonstrated that the decision of the Tribunal involved a significant error of law. The tribunal refused the application for leave to appeal.