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ARTICLE · 31 JANUARY 2024

Proportionate liability defence unavailable for builders, developers and head contractors

Gilchrist Connell
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Recent decision provides further guidance on the consumer friendly scope of the recently introduced statutory duty of care.

AustraliaReal Estate and Construction
Alex Haslam
Alex Haslam
Julian Peake
Julian Peake
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The recent decision of the NSW Court of Appeal in the case of The Owners — Strata Plan No 84674 v Pafburn Pty Ltd [2023] NSWCA 301 provides further guidance on the expansive and increasingly consumer friendly scope of the statutory duty of care recently introduced by section 37 of the Design and Building Practitioners Act 2020 (NSW) (DBP Act) (explained in detail here). Absent any impending legislative changes, it also creates a situation akin to that prior to the introduction of the proportionate liability regime.

Background

The Owners of a residential strata development in North Sydney brought a claim for breach of duty under section 37 of the DBP Act against the builder and developer responsible for the design and construction of the development.

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