Parletta Constructions P/L v Prince & Ors (No. 2) No. DCCIV-98-1113

Parletta Constructions Pty Ltd v Prince, Prince, Hartect Pty Ltd and Egis Consulting Australia Pty Ltd (No. 2) involved a dispute between Parletta Constructions (the builder), David Prince and Margaret Prince (the proprietors) and Hartect Pty Ltd (the architect). The proprietors sought damages from the builder for defects in the construction of a residential property. The builder joined the architect as a third party. The matter was referred to arbitration under section 33 of the District Court Act. The arbitrator delivered an interim award, determining that the architect was liable for certain defects, but the builder was not liable for others. The architect applied to have the first interim award not registered as a judgment of the court. The court found that the arbitrator had not adequately considered whether the defects arose from the wrongful acts or defaults of other persons, and whether the builder was liable to contribute. The court remitted four heads of claim to the arbitrator for further consideration.

The arbitrator delivered a second interim award, finding that the architect was solely liable for the defects in question. The architect applied to have the second interim award not registered as a judgment of the court. The court found that the arbitrator had correctly applied the law in apportioning liability between the architect and builder. The court rejected the architect's contention that the arbitrator had applied an incorrect test in considering the question of contribution and the application of section 72 of the Development Act. The court found that the arbitrator had adequately considered the respective roles of the architect and builder and the issues of negligence and contribution. The court declined the architect's application and remitted the matter to trial.

The court will hear the parties as to the appropriate orders which should be made and as to costs.