The Owners Strata Plan 78622 v Kingston Building Pty Ltd

The dispute in The Owners Strata Plan 78622 v Kingston Building Pty Ltd involved a claim for economic loss against the builder by the plaintiff, who became the owner of an apartment building upon the registration of the strata plan. The case was heard in the Supreme Court of New South Wales. The plaintiff alleged that the builder had breached a duty of care, resulting in significant economic loss due to alleged defects in the building. The builder and other cross-defendants sought to strike out the plaintiff's claim, arguing that no cause of action existed.

The central legal issue before the court was whether the plaintiff, as the owner of the strata plan, had a cause of action for economic loss against the builder. The court had to consider the applicability of the precedent set in the judgment of a judge of the Supreme Court, which established that a strata plan owner does not have a cause of action for economic loss against a builder. The court was required to determine whether it was bound to follow this precedent under the doctrine of stare decisis.

The court found that it was bound to follow the precedent set by the judgment of the Supreme Court judge. Consequently, the court held that the plaintiff, as the owner of the strata plan, had no cause of action for economic loss against the builder. The court dismissed the plaintiff's claim and the cross claims brought by the other defendants. The decision resulted in a verdict in favour of the defendant and the cross defendants. The court reserved costs with liberty to apply, meaning that the parties could seek to recover costs from each other if they so desired.