The Owners Strata Plan No 84674 v Pafburn Pty Ltd

The Owners Strata Plan No 84674 brought an action against Pafburn Pty Ltd for defects in the construction of residential apartments. The dispute centred on whether Pafburn was liable for breaches of statutory duties under the Design and Building Practitioners Act 2005 (Vic), and whether those breaches resulted in disproportionate liability or apportionable claims under the Civil Liability Act 2002 (NSW). The matter was heard in the Supreme Court of New South Wales.

The key legal issues before the court were whether the statutory duties imposed by sections 37 and 39 of the Design and Building Practitioners Act 2005 (Vic) were non-delegable, and if so, whether the liability for breaches of those duties was disproportionate or apportionable under sections 5Q and 39(a) of the Civil Liability Act 2002 (NSW). The court had to determine if Pafburn could be held liable for the defects despite the fact that the construction was carried out by a subcontractor. Additionally, the court examined the application of proportionate liability principles in the context of statutory duties.

The court found that the statutory duties imposed by sections 37 and 39 of the Design and Building Practitioners Act 2005 (Vic) were indeed non-delegable. The court held that Pafburn was liable for the defects due to the non-delegable nature of these duties. However, the court held that sections 5Q and 39(a) of the Civil Liability Act 2002 (NSW) did not operate to prevent the apportionment of liability for claims that were apportionable. The court concluded that the claims were apportionable, and therefore, the liability of Pafburn was proportionate to its degree of fault.

As a result, the court ordered that the liability of Pafburn Pty Ltd for the building defects was to be apportioned in accordance with its degree of fault. The court determined that the claims were apportionable and did not result in disproportionate liability for Pafburn. The final orders reflected the court's determination that Pafburn's liability was to be shared with other responsible parties, in line with the principles of proportionate liability.