Chelsea Case – Duty of Care


We reported recently on the Supreme Court of NSW case dealing with the problems experienced by Owners Corporation’s in pursuing claims against builders and developers in the area of negligence (as opposed to any statutory right under the Home Building Act 1989) – Strata Plan No 72535 against Brookfield (Builder) and Hiltan (Developer) – the “Star of the Sea case”.

In this case you will remember it involved a building that was found to be a residential complex and as such had available to it the warranties under the Home Building Act (HBAct).  Well the Court has again looked at the issue of negligent builders in a building that does not have the benefit of access to the HBAct and come to the same devastating conclusion for owners – the Builder does not owe any duty of care to the Owners Corporation.


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