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ARTICLE · 16 APRIL 2017

Residential Focus – 12 April 2017

Holding Redlich
Holding Redlich
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Holding Redlich

Holding Redlich

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This newsletter includes media releases, reports, cases, legislation and issues relating to residential property in NSW.

AustraliaReal Estate and Construction
Christine Jones
Christine Jones
Cameron Sheather
Cameron Sheather
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LMA Contractors Limited v Changizi [2017] NSWCATAP 75

The Builder and the Owners entered into a contract to construct a duplex. The contract provided for liquidated damages of $300 per day for each day the work proceeded beyond the date for completion.

The building work was completed 133 days late. At first instance the Owners were awarded $33,306.06 for delay, representing additional interest charges incurred, rather than the daily rate for liquidated damages, which the Tribunal Member considered high and in truth a penalty.

The basis for this decision was a finding that 'the builder must have known that one and probably both dwellings were a commercial operation and that delay would cause significant commercial loss to the applicants.' Accordingly the Owners' claim fell within the second and probably the first limb of Hadley v Baxendale.

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