Slivak & Anor v Lurgi (Aust)

Slivak and another (the plaintiffs) brought proceedings against Lurgi (Australia) Pty Ltd (the defendant) in the Supreme Court of New South Wales. The dispute concerned the defendant's alleged breach of contract and negligence in relation to the design and construction of a wastewater treatment plant. The plaintiffs sought damages for the cost of rectifying defects in the plant and for economic loss arising from its alleged failure to perform as intended.

The central legal issues before the Court were whether the defendant had breached its contractual obligations to design and construct the wastewater treatment plant with due care and skill, and whether it had been negligent in its performance of those duties. The Court was required to determine the standard of care expected of the defendant, the extent to which that standard had been breached, and whether the plaintiffs had suffered loss as a direct consequence of such breaches.

The Court considered the terms of the contract between the parties, expert evidence regarding the design and performance of the plant, and the applicable legal principles relating to contractual performance and negligence. The Court found that the defendant had failed to exercise reasonable care and skill in the design and construction of the plant, leading to defects that caused the plaintiffs to suffer loss. The Court applied the principles of contract law and tort law to establish liability and assess damages.