The Owners-Strata Plan No. 86807 v Crown Group Constructions Pty Ltd (No 2)

The Owners-Strata Plan No. 86807, a body corporate representing a group of apartment owners, filed a lawsuit against Crown Group Constructions Pty Ltd, a construction company, in the Supreme Court of New South Wales. The dispute revolves around allegations of defective construction and the applicability of the Design and Building Practitioners Act 2020 (NSW) and the Civil Liability Act 2002 (NSW). The Owners claim that the construction of their apartments was flawed and that Crown Group failed to adhere to the Building Code of Australia.

The court was tasked with determining whether the Owners could amend their claim to include allegations under the Design and Building Practitioners Act 2020 (NSW), despite there being no evidence presented that the construction did not comply with the Building Code of Australia. Additionally, the court had to decide whether the claim could be apportioned and whether it was necessary to determine the applicability of Part 4 of the Civil Liability Act 2002 (NSW) to grant leave to amend.

The Supreme Court of New South Wales granted the Owners leave to amend their claim, albeit conditionally. The court reasoned that although there was no evidence of non-compliance with the Building Code of Australia, the delay in bringing the application did not result in irremediable prejudice to Crown Group. The court noted that the Owners would need to provide evidence that the building work did not comply with the Building Code of Australia to proceed with their amended claim. Furthermore, the court held that determining the applicability of Part 4 of the Civil Liability Act 2002 (NSW) was unnecessary to grant leave to amend.

The court ordered that the Owners could proceed with their amended claim, subject to providing evidence of non-compliance with the Building Code of Australia. The court also noted that determining the applicability of Part 4 of the Civil Liability Act 2002 (NSW) was unnecessary to grant leave to amend.