The Owners - Strata Plan No 87639 v Karimbla Properties (No4) Pty Ltd

The Owners of Strata Plan No 87639 sought to amend their pleadings to include further allegations of defects and causes of action against Karimbla Properties (No4) Pty Ltd, following unsuccessful settlement negotiations. The amended pleadings were based on further evidence of systemic defects that had been discovered during an inspection of some of the likely affected units. The defendant consented to the amendment but argued that the plaintiffs had delayed in seeking to amend their pleadings and that the amendments should not take effect before the date of the application. The court had to decide whether the plaintiffs should be granted leave to amend their pleadings, and if so, whether the amendments should take effect from the date of the application or from an earlier date.

The court held that the plaintiffs should be granted leave to amend their pleadings, as they had adduced evidence that the defects were likely to be systemic and had acted promptly once the further evidence was available. The court also held that the amendments should take effect from the date of the application, as the plaintiffs had not provided an adequate explanation for the delay in seeking to amend their pleadings. The court noted that the amendments arose out of the same or similar facts and circumstances as the original pleadings, and that there was no prejudice to the defendant in allowing the amendments to take effect from the date of the application.

The court ordered that the plaintiffs' List Statement be amended to reflect the additional evidence and causes of action, and that the amendments take effect from the date of the application. The court also ordered that the parties proceed with the trial on the amended pleadings, and that the defendant file its defence to the amended pleadings within a specified time. The plaintiffs were also ordered to pay the defendant's costs of the application for amendment, on an indemnity basis.