The High Court has held that a builder of a serviced apartment complex does not owe a duty of care in negligence for financial loss arising from defects in common property to an owner’s corporation (Brookfield Multiplex Ltd v Owners Corporation Strata Plan 61288  HCA 36).
The serviced apartments were built by the builder under a design and construction contract with a developer. The owner’s corporation was a subsequent owner of the land.
This is an important decision for the building and construction industry as it has defined the circumstances in which a commercial builder will be found liable for defective works in negligence.
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