Landlord Liability For Defective Premises

In the recent decisions of Randwick City Council v T&H Fatouros Pty Limited [2007] NSWCA 177 and Estate of the Late Joseph James Virgona v De Lautour [2007] NSW 282, the NSW Court of Appeal revisited landlord's liability for occupants in premises owned by the landlord. The decisions provide guidance as to the circumstances where a landlord can be found liable for the defective state of premises. It is apparent from the practical approach taken by the Court of Appeal, that knowledge is the crucial ingredient in determining liability.

Where the landlord is aware of the risk and/or creates the risk, it will be exposed to liability. However, the decisions suggest that action is only required in circumstances where the landlord knows of the risk. Landlords are not under a duty to eradicate all hazards, especially those which are well known and part of ordinary domestic life.