Owners Corporation & 12 Ors v Lido Real Estate Pty Ltd

The Owners Corporation and twelve other plaintiffs, who are owners of lots within a unit block, filed an action against Lido Real Estate Pty Ltd, an entity involved in the development and sale of the unit block. The dispute pertains to alleged defects in the construction of the unit block, including issues with waterproofing, fireproofing, and structural integrity. The court was required to decide on the procedural matters of whether to dismiss or strike out a cross claim brought by the cross claimants, who were former owners and developers of the unit block, against the architect retained by the builder. The central legal issues were whether the cross claimants could maintain a cause of action against the architect for purely economic loss and whether the cross claim, as amended, raised a triable issue.

The court held that the cross claimants could potentially maintain a cause of action against the architect for purely economic loss, as the amended cross claim raised a triable issue. The court further examined whether the cross claim should be dismissed or struck out despite raising a triable issue. It was determined that the cross claim should not be dismissed or struck out in any event, as it did not meet the criteria for such an order under the relevant procedural rules. The court emphasised the importance of allowing parties to present their best case and the need to avoid unnecessary procedural delays. The court found that the cross claim, as amended, did not warrant dismissal or striking out and should proceed to trial.

The final orders of the court were that the application to dismiss or strike out the cross claim was dismissed. The cross claim was allowed to proceed to trial, subject to any further orders the court may make during the course of the proceedings. This decision ensures that the cross claimants have the opportunity to present their case against the architect in relation to the alleged defects in the construction of the unit block.