Residential focus - 1 March 2017

Walsh v Sandeberg & Anor [2017] NSWCATAP 38

The NCAT Appeal Panel (the Panel) recently considered an appeal by a builder that the Tribunal below failed to correctly apply the relevant principles in the calculation of damages awarded for the breach of a building contract. The builder claimed that the Tribunal below erred by failing to consider the issue of reasonableness with respect to the amount awarded for rectification costs.

It was not in dispute that the builder had failed to provide a rebate in the slab under a concrete block wall. The purpose of the rebate was to contain moisture that may seep through the wall from entering habitable spaces. Consequently, the Tribunal below held that "uncertainty about future waterproofing caused by lack of the rebate will always be an item of concern to the owners and is considered a latent defect."