Bellgrove v Eldridge Revisited - Wheeler v Ecroplot Pty Limited [2010] NSWCA 61

Introduction

In this case, the NSW Court of Appeal confirmed that the prima facie measure of damages where there are defects caused by a breach of a contractual obligation is the cost of rectification, provided the works to be carried out are both necessary under the contract and reasonable, affirming the principle espoused in Bellgrove v Eldridge.

The court also confirmed that only exceptional circumstances will mean that rectification is unreasonable, as observed in Tabcorp Holdings Pty Limited v Bowen Investments Pty Limited.

Facts & background

The owners contracted with the respondent builder to build a dwelling on a sloping block. The rear two-thirds of the dwelling was to be constructed over land fill using a cut and fill method.