The Owners - Strata Plan 94800 v Aushome Construction Pty Ltd

The Owners, successors in title to a large residential apartment building, sought relief against Aushome Construction Pty Ltd for defects in the building works. The dispute was heard in the District Court of New South Wales. The Owners argued that the defects in the construction were major defects under the Home Building Act 1989 (NSW), and sought compensation and orders for rectification. Aushome Construction disputed the severity of the defects and contested the Owners' entitlement to relief under the Act.

The legal issues included whether the defects were major defects as defined by the Act, and whether the court had the authority to issue a work order where the money claim exceeded the tribunal's monetary jurisdiction. The court had to determine if it could exercise its discretion to make directions for further reports on the rectification costs and whether it could make a work order in the circumstances.

The court found that the defects were indeed major defects, as they substantially affected the use of the building. Regarding the court's power to issue a work order, the court held that it had the authority to do so despite the monetary jurisdiction limitation of the tribunal. The court exercised its discretion to direct further reports on the rectification costs and made an order for the rectification of the defects.

The court ordered Aushome Construction to rectify the defects within a specified time frame, and to pay the Owners' costs associated with the proceedings. The court also made a work order, directing Aushome Construction to complete the rectification works, despite the monetary claim exceeding the tribunal's jurisdiction.