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ARTICLE · 18 DECEMBER 2024

High Court confirms apportionment defence not available for developers or head contractors Share

Gilchrist Connell
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Head contractors who carry out construction work remain 100% liable for failure to take reasonable care in executing those works.

AustraliaReal Estate and Construction
Julian Peake
Julian Peake
Alex Haslam
Alex Haslam
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In a significant decision for the application of proportionate liability in construction cases in NSW, on 11 December 2024, the High Court of Australia handed down its decision in Pafburn Pty Limited v the Owners – Strata Plan No. 84674 [2024] HCA 49.

In dismissing the appeal, the Court agreed with the NSW Court of Appeal that developers and head contractors who carry out "construction work" within the meaning of the Design and Building Practitioners Act 2020 (NSW) (DBP Act) will remain 100% liable for a failure to take reasonable care in the execution of those works, regardless of whether or not they subcontracted those works to others. Our article as to the underlying Court of Appeal decision can be found here.

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