The question of how an owners corporation might obtain a remedy for defects on common property is a complex one and, to a certain extent, is dependent upon the contracts executed as between the developer and builder, and between the developer and the purchasers of the lots. However, some general observations can be made. Continue reading
In Brookfield Multiplex Ltd v Owners Corporation Strata Plan 61288 & anor  HCA 36, the High Court rejected the notion that a builder owes a duty of care to an owners corporation for pure economic loss arising from latent defects in common property. The case turned on whether the owners corporation was “vulnerable” in the relevant sense. The commercial nature of the development and the detailed contractual framework between the developer and the builder, and the developer and the purchasers of the lots that provided for how defects would be dealt with, were factors weighing against vulnerability.