The recent case of Brookfield Multiplex Ltd v Owners Corporation Strata Plan 61288 has big implications for commercial builders and commercial property owners. Read on to learn more about this prominent High Court case and its possible impact.
The case concerned a design and construct contract entered by the developer of a Brookfield Multiplex apartment complex. Investors purchased the apartments then leased them to a management group. An Owners Corporation was established, who held title on behalf of the investors. Defects in the building works were detected and the Owners Corporation sued the builders for negligence.
What Was the Ruling?
Justice Gageler, who presided over the case, ruled in favour of the commercial builders. The judge explained that new owners can negotiate the price and terms of their purchase, much like a person buying a used car, so they cannot be expected to have their purchase protected. This ruling was in line with existing property legislation.