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[2024] NSWSC 1511
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The Owners - Strata Plan 82089 v Omaya Holdings Pty Ltd (No 3) [2024] NSWSC 1511 (3 December 2024)
Last Updated: 3 December 2024
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Supreme Court
New South Wales
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Case Name:
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The Owners - Strata Plan 82089 v Omaya Holdings Pty Ltd (No 3)
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Medium Neutral Citation:
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Hearing Date(s):
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11-15 November 2024; further submissions 18, 19 & 20 November
2024
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Decision Date:
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3 December 2024
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Jurisdiction:
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Equity - Technology and Construction List
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Before:
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Stevenson J
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Decision:
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Effective Height of the Building is 25 metres; first and second defendants
liable in relation to remaining fire safety defects; claim
against third
defendant fails
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Catchwords:
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BUILDING AND CONSTRUCTION – contract – defects – where
first defendant builder and second defendant developer entered
building contract
– where plaintiff owners corporation alleges general and fire safety
defects – where principal claim
arises from contention that the
“effective height” of building exceeds 25 metres – whether
inadequate fire safety
measures for building – construction of the
Building Code of Australia – meaning of “effective height”
–
meaning of “storey” – whether garbage collection area,
or, in the alternative, car park entry, is the “lowest
storey” of
the building BUILDING AND CONSTRUCTION – contract –
where plaintiff owners corporation alleges a building contract between the
second
defendant developer and third defendant – where no written contract
– where third defendant not licensed to perform residential
building works
– whether contract may be inferred by circumstances
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Legislation Cited:
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Cases Cited:
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Texts Cited:
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Macquarie Dictionary, online ed National Construction Code –
Building Code of Australia National Construction Code – Guide to the
Building Code of Australia, Companion Manual to the Building Code of
Australia Oxford English Dictionary, online ed
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Category:
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Principal judgment
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Parties:
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The Owners - Strata Plan 82089 (Plaintiff) Omaya Holdings Pty Ltd (First
Defendant) Arinson Pty Limited (Second Defendant) Omaya Investments Pty
Ltd (Third Defendant) BSM Holdings Pty Limited (Sixth Defendant)
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Representation:
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Counsel: M Ashhurst SC / C Mobellan (Plaintiff) F Corsaro SC / D
Byrne (First to Third & Sixth Defendants)
Solicitors: Sparke
Helmore (Plaintiff) Norton Rose Fulbright (First to Third & Sixth
Defendants)
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File Number(s):
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2018/190513
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JUDGMENT
- The
plaintiff is the Owners Corporation of a residential apartment
building comprising 99 lots and common property in Strathfield
(the
“Building”). The Building was constructed between 2009 and
2011. An occupation certificate was issued on 7 January
2011.
- The
defendants are members of the group of companies associated with the Bechara
family.
- The
first defendant, Omaya Holdings Pty Ltd, was the builder of the project
(the “Builder”). The second defendant, Arinson
Pty
Ltd, was the registered proprietor of the property at the time of the
construction and the developer (the “Developer”).
There
was a written building contract dated 4 September 2009 between the Builder and
the Developer (the “Building Contract”).
- The Owners Corporation
alleges that there are general building and fire safety defects in
the Building. It seeks damages from the
Builder and Developer for the
alleged breach of warranties implied into the Building Contract by s 18B of
the Home Building Act 1989 (NSW) and the alleged breach of the
statutory warranty contained in s 37 of the Design and Building
Practitioners Act 2020 (NSW).
- The
Owners Corporation also alleges that there was a contract between the Developer
and the third defendant, Omaya Investments Pty
Ltd, relating to the design and
construction of fire safety related works.
The cross
claims
- The
Developer and Omaya Investments brought cross claims against an architect,
Integrated Design Group Pty Ltd (the “Architect”)
and a certifier,
Bernie Cohen & Associates Pty Ltd trading as Essential Certifiers (the
“Certifier”). Those cross
claims were settled prior to the
hearing.
General building defects
- The
Owners Corporation alleges a large number of general building defects.
- On
29 September 2023, this question was the subject of an order for reference. The
nominated referee has since retired. The parties
agree that I should make a
further order for reference. I will do that once the parties have chosen a new
referee.
Fire safety defects
- The
Owners Corporation alleges a number of fire safety defects. The principal claims
arise from the Owners Corporation’s contention
that the “Effective
Height” of the Building is more than 25 metres. I return to this
below.
- Otherwise,
there is now no dispute that the Builder and Developer are liable to rectify
those defects by reason of the warranties
under the Home Building Act,
and that the cost of rectification is $298,462.79.
- The
Owners Corporation also makes a claim against the Builder and Developer under
the Design and Building Practitioners Act 2020 (NSW). It is not now
necessary separately to consider that claim in relation to these defects.
- Judgment
will be entered against the Builder and Development for this amount.
- The
Owners Corporation makes no claim against Omaya Investments for these fire
safety defects.
Fire safety defects – the “Effective
Height” defects
- The
Owners Corporation contends that the Effective Height of the Building for the
purposes of the Building Code of Australia (the
“Code”), as it
applied at the relevant time, is more than 25 metres.
- If
that is so, it is common ground that:
(a) adequate fire safety equipment has not been installed;
(b) the cost to install the requisite fire safety equipment is $3,084,234.42;
and
(c) the Builder and the Developer are liable to pay this amount to the Owners
Corporation.
- There
is a dispute, to which I will return, as to whether Omaya Investments has any
liability to the Owners Corporation arising from
the Effective Height
issue.
- The
additional fire safety measures required, if the Effective Height of the
Building is more than 25 metres, comprise:
(a) sprinklers throughout the
Building;[1]
(b) two stairs to each level;
(c) a stair pressurisation system;
(d) a sound system with an intercommunication system;
(e) a ring main and onsite water storage for the hydrant system; and
(f) smoke exhaust for the ground floor commercial tenancies.
The provisions in the Building Code
- At
the relevant time, the Code defined “Effective Height” as being,
relevantly:
“... the height to the floor of the topmost storey ... from the floor of
the lowest storey providing direct egress to a road
or open space.”
- The
Code defined “storey” as, relevantly:
“... a space within a building which is situated between one floor level
and the floor level next above ...”.
- The
word “floor” and the expression “floor level” were not
defined in the Code.
- “Storey”
was thus defined as being a “space within a building” situated
between floor levels in the manner
described.
- This
is not the ordinary meaning of “storey”, which is “a complete
horizontal section of a building having one continuous
or approximately
continuous floor”, or “the set of rooms on the same floor or level
of a building”,[2] or
“each of the sections of a building comprising all the rooms that are on
the same level”.[3]
- There
is no dispute about the “height to the floor of the topmost storey”
of the Building. It is the penthouse level of
the Building, level 8 of the
Building which is at RL[4] 40.
- The
dispute is as to the identity, and thus the height of, the “floor of the
lowest storey providing direct egress to a road
or open space” (the
“Lowest Storey”).
- The
candidates are:
(1) the ground floor level of the Building (the “Ground Floor”),
which is at RL 15;
(2) the garbage collection area (the “Garbage Area”), which is at RL
14.45; and
(3) the car park entry area (the “Carpark Entry”), which is at RL
13.69.
- The
location of these areas is shown on the attached “Ground Floor
Plan”Ground
Floor Plan - CB4257 (594480, pdf).
There is a dispute, to which I will return, as to whether this plan, so far as
it depicts the Garbage Area, is the plan relevant
to determination of the
Effective Height question.
- As
can be seen, if the Lowest Storey is the Ground Floor, the Effective Height is
exactly 25 metres. That is how the Building was
designed by Mr Simon Thorne, a
director of the Architect, whose plans were the subject of a construction
certificate issued by Mr
Bernie Cohen, the sole director of the Certifier, on 7
September 2009 (the “Construction Certificate”).
- If,
however, the Lowest Story is the Garbage Area or the Carpark Entry, the
Effective Height is either 0.55 metres or 1.31 metres
more than 25 metres: that
is, either 25.55 metres or 26.31 metres.
The proper construction
of the Code
- The
meaning of “Effective Height” in the Code was carefully considered
by Lindsay J in Owners Strata Plan 69312 v Rockdale City
Council.[5]
- His
Honour observed, and I agree, that the Code is to be construed by reference to
its language and not by what any expert opines
as to its
meaning.[6]
- There
was a dispute before his Honour as to whether it was permissible to have regard
to the “Guide to the Building Code of
Australia”
(“Guide”) which, like the Code itself, is published by the
Australian Building Codes Board. As his
Honour observed, the Guide itself
states that it “should not be taken to override” the Code and did
not have “regulatory
force” and that it was a “companion
manual”, or “reference book”, and for “guidance
only”.
- His
Honour determined that the Guide was not relevant to the proper construction of
“Effective Height”,[7] and
added nothing material to the text of the
Code.[8]
- Before
me, it is common ground that I may have regard to the Guide, bearing in mind its
stated limitations.
- I
respectfully disagree with Lindsay J’s view that the Guide is not relevant
to the proper construction of the Code although,
of course, it cannot
“override” the language of the Code.
- The
Guide provides important context within which to understand the object of the
provision in the Code for the Effective Height of
a building.
- As
his Honour observed, the Code is a formal document designed to define standards
for the promotion of safety in the construction
of
buildings.[9]
- As
his Honour further observed, Effective Height is used in the Code to determine
the content of the fire safety regulatory requirements
for buildings and to
provide an objective measure to permit an assessment to be made of the fire
safety requirements that would have
a bearing on the internal configuration of
buildings.[10]
- If
the Effective Height of a building exceeds 25 metres, significantly more fire
protection is required than if the Effective Height
of a building is 25 metres
or less.
- The
Guide gave colour to these matters and explained why 25 metres has been chosen
as the distance between the topmost storey and
the lowest storey providing
direct egress to a road or open space beyond which extra fire protection
measures is required.
- Thus:
(1) The Guide stated that the Effective Height:
“Measures the height of a building for safety purposes. Effective height
is measured from the floor of the lowest storey providing
direct egress to a
road or open space (this will usually be the level at which the fire brigade
would enter) – to the floor
of the top storey.”
(2) Speaking of a provision in the Code as to the number of exits to be
provided in a building having an Effective Height of more
than 25 metres, the
Guide stated that this distance:
“... recognises the effective operating height of fire brigade ladders and
other fire-fighting and rescue equipment.”
(3) In relation to a provision in the Code concerning a fire control centre
the Guide stated:
“The height of the building ... is a measure of the extent to which the
fire brigade can fight any fire or carry out rescue
operations from the outside
of the building and the evacuation time.”
(4) In relation to the provision in the Code concerning installation of fire
sprinklers, the Guide stated that the Code:
“... requires all buildings with an effective height of more than 25
metres ... to be sprinkler protected. The provision regarding
an effective
height of 25 metres recognises the effective operating height for fire brigade
ladders and other firefighting and rescue
equipment.”
- The
Guide thus provides context for an understanding of the meaning of Effective
Height.
- The
definition of Effective Height speaks of “the floor of the lowest storey
providing direct egress to a road or open space”
but does not state, in
terms, where such “direct egress” is to be from. As Lindsay J
observed,[11] egress means “a
way out” and the definition thus invites the question, “[w]ay out
from where?”.
- Lindsay
J considered that question and
concluded:[12]
“In my opinion, the word ‘egress’ implied identification in
the features of a building of:
(a) at least one, and possibly more than one, point at which
occupants of the building could exit it to a road or open space; and
(b) the existence within the building of a pathway, or
pathways, reasonably accessible, from the point of egress to the whole of
the
building or, at least, a substantial part of it.”
- I
agree, but consider the references in the Guide to the role of the fire brigade
provide a context within which to assess what might
be a “reasonably
accessible” pathway to a point of egress or exit to a road or open space
in the particular circumstances
at hand. As the point of an Effective Height of
more than 25 metres is, relevantly, as a determinant of the point beyond which
further
fire protection measures are required, consideration in each case of
what would be a reasonably accessible pathway to the point of
egress or exit to
a road or open space must take into account the possibility of that pathway
being used in the event of fire.
- I
do not read Lindsay J’s reasons as reaching a different conclusion or
finding that the reasonably accessible pathway to the
point to exit to a road or
open space should be determined by reference to whether a particular pathway was
reasonably accessible
whether or not there was a fire, or when there was no
fire.
- The
configuration of the building that Lindsay J was considering and the competing
contentions there as to what was the lowest storey
with direct egress to a road
did not require his Honour to reach any such conclusion.
- It
is true that his Honour held that the word “egress” implied “a
point of exit rather than an escape
route”,[13] but that was in
the context of his Honour rejecting an argument, not put to me, that
“direct egress” should be read as
a reference to “the route
that connected” the point of egress to the topmost
storey,[14] or a “line of
march between the topmost storey and the point of
exit”,[15] as opposed to a
point of exit.
- If
I am wrong, and Lindsay J’s reasons should be understood to have the
meaning I have set out at [45] above, I respectfully
disagree.
Effective Height was considered during the design of
the Building
- As
I have said, the Building was designed by the Architect.
- On
22 June 2009, the Architect issued a set of drawings, including the Ground Floor
Plan referred to at [26] above (the “June 2009 Plans”).
- The
Certifier issued the Construction Certificate on the basis of the June 2009
Plans.
- The
actual certificate in the Construction Certificate stated:
“I certify that the work if completed in accordance with these plans and
specifications (with such modifications verified by
the Certifying Authority as
may be shown on that documentation) will comply with the requirements of the
Environmental Planning and Assessment Regulation 2000 as referred to in Section
81A(5) of the Environmental Planning and Assessment Act 1979.”
- As
I have set out above, the June 2009 Plans show the Ground Floor, the Garbage
Area and the Car Park Entry as being at RL 15, 14.45
and 13.69, respectively.
The plans also showed the penthouse level, level 8, as being at RL 40.
- Both
the Architect and the Certifier gave evidence that attention was paid, during
the design of the Building, to its Effective Height,
the object being to achieve
an Effective Height of exactly 25 metres.
- The
matter was thus not overlooked.
- Thus,
the Certifier, Mr Cohen, deposed:
“9. The basis for my review and assessment of the [June
2009 Plans] included the following:
a. determining the ‘effective height’ of the
Development, as that term is defined in the [Code];
b. the 2009 version of the [Code] in force at the time of my
consideration of the construction certificate submissions stipulated
that the
effective height of a building typical of the Development was measured
from the floor of the topmost habitable (broadly speaking) storey, to the floor
of the lowest storey providing direct egress to a road or open space; and
c. if the effective height of a building of this type
exceeded 25 metres, the building was required to contain significantly more
advanced fire safety measures
than if the effective height was exactly 25
metres or less.
10. My review of the [June 2009 Plans] revealed to me that:
a. the topmost habitable floor of the development was Level 8,
shown on the drawings as the Penthouse Level ...;
b. the lowest storey providing direct egress to a road
or open space was the Ground level, which was reflected on the plans with egress
points discharging at multiple
exits from the main accessible areas of the
building (i.e., the residential lobbies) ...;
c. although the driveway ramp in Basement 1 provided egress to
a road (being Clarence Street), the egress was for vehicles and
discharged from
a roller door servicing a commercial car park and storage area, which is not a
means of direct egress; and
d. accordingly, the effective height of the proposed
Development was to be measured from the floor of Level 8 to the floor of the
Ground floor, which I calculated to
be 25.0 metres, as shown on the section and
elevation drawings.
11. During assessment of the application for a construction
certificate for the Development, Essential Certifiers issued a proposed
schedule
of essential fire safety measures ...
12. I prepared the Proposed Fire Safety Schedule on the basis
that the proposed fire safety measures set out therein were those
required for a
building with an effective height of not more than 25.0 metres. Given my
determination that the effective height of the Development was exactly 25
metres, I was satisfied that the fire safety measures set out in the Proposed
Fire Safety Schedule
were appropriate for the proposed Development and that
these aspects of the building complied with the BCA.
13. On 7 September 2009, I signed and issued the construction
certificate for the proposed Development ... which also included
the Proposed
Fire Safety Schedule.” (Emphasis in original.)
- In
cross-examination, Mr Cohen was not able to add anything as to his process of
reasoning in issuing the Construction Certificate.
That is unsurprising, as the
Construction Certificate was issued over 15 years ago.
- In
cross-examination, Mr Thorne of the Architect said that it would have been his
usual practice to look at the definition in the
Code of Effective Height and to
have made calculations accordingly. When pressed, Mr Thorne offered opinions as
to, what was likely
to have been his process of reasoning at the time. However,
as I have said, this was over 15 years ago and I am not persuaded that
Mr Thorne
now recalls what process of reasoning he in fact adopted. Again, this is quite
understandable.
The evolution of the design of the Garbage
Area
- As
can be seen, the June 2009 Plans show the Garbage Area as being open to Clarence
Street, and having access from the balance of
the Ground Floor through passages
leading to the lift lobby and elsewhere.
- Some
nine months after the issue of the Construction Certificate, on 19 May 2010, Mr
Thorne of the Architect wrote to the City of
Canada Bay Council (the
“Council”), attaching an application under the s 96(1A) of the
Environmental Planning and Assessment Act 1979 (NSW) to modify the
prevailing Development Consent.
- Mr
Thorne wrote that:
“The proposed changes generally involve the swapping of the ground floor
garbage room with basement 1 commercial areas with
the relocation of car spaces
as part of the adjustments.
...
The garbage loading bay is now a secured holding bay for the garbage on
collection day.
Direct access to the kerbside is available from the garbage holding room and
will be secured on non-collection days.”
- So
far as concerns the Garbage Area, the changes are depicted on a further plan
dated 17 May 2010 (the “May 2010 Plan”).May 2010
Plan - p 5, Ex 7 (1264825, pdf)
- As
can be seen from this plan, there is no longer access to the Garbage Area from
Ground Floor, with the only access being through
a roller shutter and walkway
facing onto Clarence Street.
- Mr
Thorne’s letter was sent to the Council with a “Section 96
Modification of a Consent Application Form” dated 20 May 2010. The
applicant in that document is named as “Omaya”.
- This
prompted the Council to prepare on 26 May 2010 a “Development Application
Checklist” and on 28 May 2010 an internal
instruction to “review the
proposal”.
- On
22 June 2010, an officer of the Council, Mr Nigel Bertus, conducted a site
inspection and stated in an internal memorandum:
“Following a site inspection carried out today at the abovementioned site
in relation to the storage of garbage and recycling
bins while awaiting pickup
and the method of collection by Council’s waste contractor when emptying
the bin.
Council has generally no objection to the amendment on waste management grounds
subject to the following details being
• A designated area is to be nominated including
dimensions for the waste/recycling collection truck to stop and empty the
bins.
The area is to be located off Clarence Street. Details to be submitted.”
- Mr
Ashhurst SC and Mr Mobellan, who appeared for the Owners Corporation, pointed to
a Progress Claim made by the Builder on 14 May
2010 that showed that, by then,
the following works had been completed to the Building:
(a) 100% of the columns;
(b) 100% of the upper floors; and
(c) 30% of the external walls.
- Mr
Ashhurst and Mr Mobellan submitted that, in these circumstances, “the
Court can infer [from Mr Bertus’s note] that
the [relevant] works [at that
part of the site] had been completed”.
- I
do not accept that submission.
- The
14 May 2010 Progress Claim does show the matters at [67] but also shows that
only 10% of internal walls were by then complete and that none of external
doors, internal doors and wall, ceiling,
and floor finishes were then
complete.
- That
suggests the probability that the internal walls forming the Garbage Area were
not at this stage complete.
- That
conclusion appears to be confirmed by a photograph produced by the Council on
subpoena, and which appears in the documents produced
by the Council immediately
after the 26 May 2010 “Checklist”:
- Further,
the terms of Mr Bertus’s internal memorandum suggest that the proposed
changes did not involve any reconstruction of
existing works.
- I
find that, at the time of the 20 May 2010 Application to vary the Development
Consent, the internal walls of the Garbage Area were
not complete and that,
contrary to the Owners Corporation’s submissions, the works the subject of
that application had not
been commenced, let alone completed.
- On
13 July 2010, the Council approved the proposal to modify the Development
Consent.
- On
14 July 2010, the Council wrote to the Builder notifying it of this consent, and
stating:
“Amendments approved under this modification may require an amended
Construction Certificate, or in the case of works already
commenced/completed
under this modification, a Building Certificate will be required. Please consult
with your Principal Certifying
Authority before proceeding.”
- In
subsequent plans prepared by the Architect, the precise configuration of the
Garbage Area altered slightly, although it remained
accessible only from
Clarence Street and not from the internal areas of the Ground Floor.
- The
final design of the Garbage Area is depicted in what appears to have been the
final “issued for construction” plan
of the ground floor prepared on
18 October 2018 by the Architect (the “Final
Plan”).[16] The Final Plan is
in this form attached.Final
Plan - CB4435 (860508, pdf)
- As
can be seen, the Garbage Area is now a rectangular area, with no access
internally from the Ground Floor, facing Clarence Street,
at which there is to
be located a “layback to allow for garbage loading zone”.
- On
7 January 2011, the Certifier issued a Final Occupation Certificate.
- The
operative part of the certificate reads:
“A Development Consent/Complying Development Certificate is in force with
respect to the building.
A Construction Certificate/Complying Development Certificate has been issued
with respect to the plans and specifications for the
building.
The building is suitable for occupation or use in accordance with its
classification under the Building Code of Australia.
Where required, a final Fire Safety Certificate has been issued for the
building.
Where required, a report from the Commissioner of Fire Brigades has been
considered.”
- The
“Final Report” in that document is in this form:
“FINAL REPORT
The Accredited Certifier certifies that the subject stages of construction were
inspected and found to be satisfactory and the development
is completed in
accordance with the approved plans and specifications and Council’s
Development Consent conditions if applicable.
Date
|
Inspection
|
Inspected by
|
12/11/09
|
Slab
|
Chris Manzi
|
25/11/09
|
Storm Water
|
Chris Manzi
|
11/12/09
|
Storm Water
|
Tony Raco
|
11/05/10
|
Fire Safety Inspection
|
Bernie Cohen
|
18/08/10
|
Water Proofing
|
Chris Manzi
|
18/08/10
|
Fire Safety Inspection
|
Chris Manzi
|
21/12/10
|
Final Inspection
|
Ron Moore
|
7/1/11
|
Final OC Completion
|
Ron Moore”
|
The Garbage Area
- The
Garbage Area, as constructed, is as depicted in the Final Plan.
- It
has access via a door to Clarence Street but no access internally from the
Ground Floor.
- As
constructed, the Garbage Area cannot be the “lowest storey providing
direct egress to a road or open space” as, although
it might provide a
point of such egress internally from the Garbage Area itself, there no
“reasonably accessible” pathway,
indeed no pathway at all, to that
point of egress from any other part of the Building.
- Mr
Ashhurst did not dispute this, but submitted that, for the purpose of assessing
the Effective Height of the Building, regard should
be had only to the plans the
subject of the Construction Certificate, that is the June 2009 Plans.
- In
closing oral submissions, Mr Ashhurst put the submission this way:
“The obligation to build for effective height is a construction
certificate obligation, not a development application obligation.
The fact that
the defendants may have amended the DA, meant that they could use the garbage
area differently, did not mean that they
could construct it differently, and it
did not mean that they had somehow thereby avoided their obligations in respect
of effective
height.”
- It
followed, Mr Ashhurst submitted, that as the June 2009 Plans showed the Garbage
Area to be accessible to the internal Ground Floor
areas, the Garbage Area was a
storey providing direct egress to Clarence Street and, being at RL 14.45, its
floor was more than 25
metres from the penthouse at RL 40, with the result that
the Effective Height of the Building was, at least, 25.55 metres.
- Mr
Ashhurst pointed to the fact that, although one or other of the Omaya defendants
obtained the Council’s Development Approval
to vary the Garbage Area in
the manner I have described, no further construction certificate was obtained to
vary the Construction
Certificate issued in 2009 on the basis of the June 2009
Plans.
- In
response, Mr Corsaro SC and Mr Byrne, who appeared for the defendants,
submitted:
“[T]he absence of a modified construction certificate reflecting changes
approved by an amendment to the development approval
may be an irregularity, but
does not invalidate the changes which were built as reflected in the modified
development approval drawings.”
- Mr
Corsaro and Mr Byrne drew attention to the observations of Basten JA, with whom
Payne and Brereton JJA agreed, in Omaya Investments Pty Ltd v Dean Street
Holdings Pty Ltd,[17]
that:[18]
“... it would be a surprising result if compliance with plans which were
conceded to be consistent with the development consent
and had, in each case,
been approved by the certifying authority, could result in invalidity of the
development undertaken in accordance
with them.”
- His
Honour referred to similar conclusions reached by Sackville AJA, with whom
McColl and Barrett JJA agreed, in Burwood Council v Ralan Burwood Pty Ltd (No
3).[19]
- In
this case, the Garbage Area has been constructed in accordance with the plans
approved by the Council on 13 July 2020.
- It
is true that, on 14 July 2020, the Council notified the Builder that the
Council’s approval of an amendment to the Development
Approval “may
require an amended Construction Certificate”. It is also true that, as it
appears, no amended construction
certificate was issued.
- I
am not persuaded that this, somehow, rendered the development actually
undertaken as being invalid.
- Further,
the same Certifier that issued the Construction Certificate issued the Final
Occupation Certificate and made the certification
that I have set out at [81] above that a
“Construction Certificate ... has been issued with respect to the plans
and specifications for the [B]uilding”.
The Occupation Certificate also
referred to the Fire Safety Inspections set out at [82].
- It
would, in those circumstances, desert reality to ignore the final configuration
of the Garbage Area when assessing the Effective
Height of the Building.
- My
conclusion is that, for those reasons, the Garbage Area is not “the lowest
storey providing direct egress to a road or open
space” in the Building
and is thus not a relevant integer in the calculation of the Building’s
Effective Height.
The Carpark Entry
- The
Carpark Entry is at RL 13.69.
- The
Car Park Entry comprises an entry pad, being an open level area of approximately
6.5 metres wide and some 1.9 metres deep, accessible
directly from Clarence
Street as shown on this photograph:
- This
area can accommodate a car arriving at and also departing from the carpark
below.
- Immediately
adjoining the entry pad is a ramp leading down to a roller shutter door, as
shown on this photograph:
- What
appears to be a doorway on the left hand side of the roller shutter is bolted
closed.
- As
Mr Ashhurst pointed out, the roller shutter is not shown on the June 2009 Plans.
But it is shown in the May 2010 Plan, as approved
by the Council on 13 July
2010.
- I
cannot see how the Carpark Entry could be described as the “lowest storey
providing direct egress to” Clarence Street.
- First,
it would strain language to describe the entry pad of the Carpark Entry as a
“floor level” of the Building. It
is a driveway, or perhaps, part of
the ramp descending to the carpark.
- Accordingly,
the Carpark Entry itself is not a “storey” because it is not a space
within the Building situated between
one “floor level” and the floor
level next above.
- Second,
even if the Carpark Entry could be described as a “point of egress”
from the Building to Clarence Street, it is
not one that is “reasonably
accessible”[20] from the whole
or part of the Building, especially in the case of fire, as it is accessible
only from the carpark which, in turn,
is accessible from the other storeys only
by a lift.
- Third,
it is hard to see how the Carpark Entry could be described as “within a
building” when, although within the Building
envelope, it is exposed to
the open air and was described by both Mr Thorne, and by an expert architect
engaged by the Omaya defendants,
Mr Kim Jones, as an
“undercroft”.
- The
Carpark Entry is, for those reasons, not “the lowest storey [of the
Building] providing direct egress to a road or open
space”.
Conclusion as to Effective Height
- It
follows that the “lowest storey [of the Building] providing direct egress
to a road or open space” is the Ground Floor.
- Thus,
the Effective Height of the Building is as it was designed to be: exactly 25
metres, being the height of the topmost storey,
the penthouse, from the Ground
Floor.
The claim against Omaya Investments
- Much
time was spent at the hearing on the question of the Owners Corporation’s
contention as to the existence of a building
contract between the Developer and
Omaya Investments. I understood the Owners Corporation’s focus on this
aspect of the case
to arise from an apprehension on behalf of the Owners
Corporation as to the financial position of the Builder and the Developer,
and
because of Omaya Investments’ former role as trustee of the Bechara Family
Trust.
- However
that may be, the Owners Corporation’s claim against Omaya Investments is
now confined to a claim under the Design and Building Practitioners Act,
arising from Omaya Investments’ alleged role in relation to the Effective
Height issue.
- The
claim against Omaya Investments is predicated on a finding that the Effective
Height of the Building is more than 25 metres.
- As
I have found that the Effective Height of the Building is, and always was, 25
metres, the claim against Omaya Investments must
fail.
- However,
in view of the extensive submissions I received on the question, I shall deal
with some aspects of it.
- In
its Fourth Amended Technology and Construction List Statement, the Owners
Corporation alleges:
“On or around 2007 and on or around 2009 [Omaya Investments] entered into
a contract ... with the [Developer], whereby [Omaya
Investments] agreed to
undertake works and provide goods and services for the construction of the
Building ... being the following:
(a) Design and construction of fire safety measures in the
Building; and/or alternatively certification of construction of fire
safety
measures in the Building;
(b) Coordination and engagement of design consultants in
matters directly or indirectly related to the fire safety measures required
for
the purposes of compliance with [the Code];
(c) Coordination and engagement of consultants in matters
directly or indirectly related to the certification of fire safety measures
required for the purposes of compliance with the
[Code].”[21]
- It
is said to follow from this that:
(1) the work described in the preceding paragraph was “residential
building work” for the purposes of the Home Building Act;
(2) such work was also “construction work” for the purposes of the
Design and Building Practitioners Act;
(3) Omaya Investments thus had the duty of care set out in s 37 of the Design
and Building Practitioners Act;
(4) such duty extended to the Owners Corporation by reason of s 36 of that
Act;
(5) such duty was non-delegable by operation of s 39 of that Act;
(6) Omaya Investments breached that non-delegable duty of care because it:
(a) “failed to ensure that a properly qualified person had made a proper
analysis” of the Effective Height of the
Building;[22] and,
(b) “failed to ensure” that the Building was designed and
constructed to have an Effective Height of less than 25 metres
or to have the
requisite fire safety protections if the Effective Height was more than 25
metres.[23]
- The
question of breach was put a little differently in Mr Ashhurst’s and Mr
Mobellan’s closing written submissions as
follows:
“[Omaya] Investments breached its non-delegable duty of care to the
[Owners Corporation] by reason of [the Architect’s]
failure to design the
Building in accordance with the clear terms of the definition of
‘Effective Height’ and negligently
miscalculating the Effective
Height of the Building so as to fail to provide for the additional fire safety
measures required by
the [Code] for a building over
25m.”[24]
And:
“... [Omaya] Investments is vicariously liable for the breach of duty of
care by [the Architects] in failing to take reasonable
precautions in assessing
the Effective Height of the Building under the
[Code].”[25]
Was there a building contract between the Developer and Omaya
Investments?
- Although
there is a contract, the Building Contract, between the Developer and the
Builder, there is no evidence before me that there
is any written contract
between the Developer and Omaya Investments.
- The
Builder is licensed to perform residential building works. Omaya Investments has
never been so licensed: a factor pointing against
a conclusion that it would
enter into a contract with the Developer to carry out such works.
- The
Owners Corporation’s case is that, nonetheless, the existence of such a
contract is to be inferred from a number of circumstances.
The
representations in the pleadings
- The
first matter relied upon is the statements in the Cross-Claim made by the
Developer and Omaya Investments against the Architect
and the Certifier, to
which I referred in my judgment of 19 September
2024,[26] in which I granted the
Owners Corporation leave to bring its current claim against Omaya
Investments.
- I
set out those statements, then described by Ms Ashhurst and Mr Mobellan as
“evidentiary admissions”, in that judgment
as
follows:[27]
“The allegations relied on as ‘evidentiary admissions’ are,
first, a statement in the Developer’s and Omaya
Investments’ Amended
List Statement for the Cross-Claim against the architect and certifier, under
the heading “Nature
of Dispute”:
‘4 [The Developer] engaged [the Builder] and [Omaya
Investments] to carry out certain residential building works at the
Property.’
Second, as against the architect, the Developer and Omaya Investments allege in
the Cross-Claim, under the heading ‘Claim against
[the architect]’,
that:
‘15 In about 2007, [Omaya] Investments engaged [the
architect] to provide it with architectural design and construction
associated
services in relation to the development of the Property.’
Third, as against the architect, the Developer and Omaya Investments allege in
the Cross-Claim, under the heading ‘Common law
duty of care’:
‘22A The salient features of the relationship between
[the architect], and each of:
(a) [the Developer], as the registered proprietor of the
Property; and
(b) [Omaya] Investments, as the party who engaged [the
architect] to provide the IDG Architectural Services;
were that:
...
(d) [the architect] knew or
ought to have known that:
...
(ii) [the Developer] had engaged [Omaya] Investments to carry
out residential building work on the building at the Property; ...’
The Developer and Omaya Investments make corresponding allegations in the
Cross-Claim against the certifier, save that it is alleged
that Omaya
Investments appointed the certifier in November
2009.”[28]
- Those
matters are not, in truth,
“admissions”,[29] but
might involve an implied representation that the “party filing the
pleading honestly believed it had a fair chance of prospects
of
success”.[30]
- I
held that these matters were a sufficient basis for the Owners Corporation to
allege the existence of a contract between the Developer
and Omaya
Investments,[31] but
concluded:[32]
“At the end of the day, the assertions made by the Developer and Omaya
Investments in their Cross-Claim, and such representations
as may be found to
arise from them, may not be a sufficient basis upon which to establish the
Alleged Contract.
But I see the case as being at least arguable, such that the Owners Corporation
should be granted leave to make the allegation and
endeavour to establish it at
hearing.”
- The
Omaya defendants have not adduced evidence explaining how it was that Omaya
Investments made the allegations in the Cross-Claim.
Although, in their closing
submissions, Mr Corsaro and Mr Byrne drew attention to authorities referring to
representations made in
pleadings under “a misapprehension, or at a time
when the person did not have all the relevant
information”,[33] they did not
direct my attention to any such evidence in these proceedings.
- The
representations made in the cross-claims are a factor to be weighed in the
balance but must be considered in the light of the
other evidence to which my
attention has now been directed.
Nomination of Omaya Investments
in development approval documents
- The
Owners Corporation has identified a number of documents which nominate Omaya
Investments as the applicant for relevant approvals.
- Thus:
(a) Omaya Investments is named as the “applicant” in the 20 December
2007 application to the Council for development
approval;
(b) Omaya Investments is named as the “applicant” in a 4 June 2009
application to the Certifier for the Construction
Certificate;
(c) perhaps for this reason, the Certifier identified Omaya Investments as the
applicant in the Construction Certificate itself and
in the Final Occupation
Certificate of 7 January 2011.
- However,
there are many other documents which point in a different direction.
- For
example:
(a) the Builder, and not Omaya Investments, made additional submissions in
relation to the development application on 4 March 2008;
(b) the minutes of a meeting of the Council on 3 June 2008 record the Omaya
representative being present on behalf of the Builder,
not Omaya Investments;
(c) on 6 October 2009, the Council wrote to the Developer, and not Omaya
Investments, advising that consent had been given to an
application to modify
the development consent;
(d) the Council’s assessment of 20 May 2010 of an application to modify
the development consent recorded the Builder as the
applicant and the Developer
as the Owner;
(e) the Council’s notice of determination of 13 July 2010 recorded the
Builder, and not Omaya Investments, as the applicant;
(f) a development application dated 10 August 2010 identifies the Builder, and
not Omaya Investments, as the applicant and the Developer
as the owner;
(g) an assessment made by the Council on 2 September 2010 of an application to
modify the development consent recorded the Builder,
and not Omaya Investments,
as the applicant and the Developer as the owner;
(h) on 15 October 2010, the Council wrote to the Builder, not Omaya Investments,
advising that it had consented to an application
to modify the development
consent; and
(i) on 21 October 2010, the Council wrote to the Builder, and not Omaya
Investments, advising that it had consented to the development
consent.
The Architect
- The
Architect’s fee proposal of 5 February 2007 was addressed to the
Builder.
- However,
from April 2007 to October 2010, the Architect sent its invoices to Omaya
Investments stating, each time, that the invoice
was sent, “in accordance
with our agreement”.
- On
17 September 2007, Mr Thorne of the Architect wrote to a representative of a
traffic planning contractor that “Jessica from
Omaya” had called and
had requested that the traffic consultant’s invoices, earlier issued to
“Omaya Development”,[34]
be “reissued” to “Omaya Investments”.
- There
is no direct evidence as to which Omaya entity paid the Architect’s
invoices, although it may be inferred from the Builder’s
failure to
produce evidence of such payment in response to a Notice to Produce that it was
not the Builder that paid the Architect.
- There
is in evidence a “Sepp 65 design statement” prepared by the
Architect which is stated as being “prepared for”
Omaya
Investments.
- On
the other hand, the minutes of eight Design Coordination Meetings attended by
the Architects were issued on the letterhead of the
Builder, not Omaya
Investments, and identified the Omaya representatives as having been in
attendance as being from “Omaya
Holding”: the
Builder.
The Certifier
- The
Certifier’s February 2008 quotation was addressed to Omaya
Investments.
- Mr
Cohen gave evidence that this was because Omaya Investments had been named in
the relevant Development Consent.
- The
Certifier issued three invoices, each addressed to Omaya Investments. One, dated
18 August 2009, bears manuscript endorsements
suggesting it was paid by a cheque
drawn on account of Omaya Investments. On the other hand, one of the other
invoices, dated 5 October
2010, bears a like endorsement showing it had been
paid by the Builder.
The Progress Claims
- Perhaps
more significantly, all the invoices from the Architect and Certifier were
included in progress claims made by the Builder,
not Omaya Investments, to the
quantity surveyor that was acting as certifier for the purpose of the
Builder’s and Developer’s
external funder.
- Those
progress claims attached invoices from the Architect and the Certifier, as well
as invoices from other subcontractors, and included
a statement:
“All subcontractors and suppliers to the [Builder] have been paid all
monies which as at the date of this declaration are due
and payable to them by
the Contractor for the performance of work under the Contract and the supply of
materials for use in work
under the Contract ...”.
- This
does not itself prove which Omaya entity paid the “subcontractors and
suppliers”.
- It
does, however, show that, although Omaya Investments may have been acting as the
Builder’s agent or subcontractor for some
reason of internal corporate
convenience, it was the Builder itself that was seeking payment from the
external funder for the work
done.
Certification of fire
services
- The
Owners Corporation pointed to a fire safety certificate which is in this
form:
- As
Mr Corsaro and Mr Byrne submitted, the language of this template requires that
the certification be given by the “owner of
the building described above,
or the agent of the owner”. The Developer, not Omaya Investments, was the
owner of the property,
suggesting that Mr Bechara was giving this certificate as
the “agent of the owner”.
- Further,
in this document Mr Bechara was simply certifying that a properly qualified
person had assessed the fire safety measures
and that in such an assessment,
those measures had been found to be capable of performing to the standard
required. The certification
does not itself establish that the design or
construction of the fire safety services was carried out by Omaya
Investments.
A Ferrcom inference?
- Mr
Ashhurst and Mr Mobellan submitted that I should not draw any inference in
favour of the defendants in circumstances where they
could have adduced direct
evidence in support of the proposition that there was no contract between the
Developer and Omaya
Investments.[35]
- However,
this overlooks the fact that Mr James Abraham, the Development Manager of each
of the Builder, the Developer, and Omaya Investments,
made an affidavit in which
he said:
“[Omaya] Investments was not named on the Contract [between the Developer
and the Builder], nor are there any books and records to my knowledge which
indicate that [Omaya] Investments undertook any construction works or was
capable of undertaking any construction works at 48 Cooper Street, in
circumstances where it does not and never has, held a contractor
licence.” (Emphasis added.)
- Mr
Ashhurst and Mr Mobellan objected to the part of that passage which I have
emphasised in italics, and I rejected that evidence.
However, I do not think
that I should draw a Ferrcom inference against the defendant in those
circumstances.
Conclusion
- Overall,
I am not persuaded by this evidence of the existence of a building contract
between the Developer and Omaya Investments.
- There
are certainly some factors pointing towards that conclusion, particularly the
invoices from the Architect, and the representations
made by Omaya Investments
in the cross-claims against the Architect and the Certifier.
- However,
the fact there is no document recording any building contract between the
Developer and Omaya Investments, that Omaya Investments
is not a licensed
builder, and that, at the end of the day, it was the Builder, and not Omaya
Investments, that sought payment for
the work done by the Architect and the
Certifier, persuades me that the more likely explanation for the role that Omaya
Investments
has played is that it was acting as agent or subcontractor of the
Builder.
Residential building work?
- There
are further difficulties.
- The
Owners Corporation alleges that the work that Omaya Investments agreed to
perform for the Builder, as alleged in the Owners Corporation’s
List
Statement as set out at [118] above, was “residential building work”
within the meaning of the Home Building Act.
- “Residential
building work” is defined in the Home Building Act as “any
work involved in, or involved in co-ordinating or supervising any work involved
in ... the construction of a
dwelling”.[36]
- The
Omaya defendants developed submissions to the effect that the work that the
Owners Corporation alleges that Omaya Investments
agreed to perform, being
confined to the design, construction and certification of fire safety measures,
was not work involved in
“the construction of ... a dwelling” and
thus not residential building
work.[37]
- In
view of my conclusions as to Effective Height, it is not necessary for me to
deal with this submission, save to note that, in their
final written and oral
submissions, Mr Ashhurst and Mr Mobellan did not address the question.
“Failure to ensure”
- A
further difficulty with the Owners Corporation’s case against Omaya
Investments is that it is framed as an obligation “to
ensure” that
the Building either had an Effective Height of 25 metres or less, or that it had
the requisite fire safety protection
facilities in the event that the Effective
Height of the Building was more than 25
metres.[38]
- The
obligation under s 37 of the Design and Building Practitioners Act is to
exercise reasonable care to avoid economic loss caused by defects arising from
construction work. It is not an obligation to
“ensure”
anything.[39]
“Construction
work” for the purpose of the Design and Building Practitioners Act
- “Construction
work” is defined in s 36 of the Design and Building Practitioners Act
as any of the following:
“(a) building work;
(b) the preparation of regulated designs and other designs for
building work;
(c) the manufacture or supply of a building product used for
building work;
(d) supervising, coordinating, project managing or otherwise
having substantive control over the carrying out of any work referred
to in
paragraph (a), (b) or (c).”
- In
their opening written submissions, Mr Ashhurst and Mr Mobellan submitted
that:
“The works performed by the Omaya [d]efendants was ‘construction
work’ within the meaning of section 36 of the [Design and Building
Practitioners Act] by reason that the works constituted the
coordinating, project managing or otherwise having substantive control over the
carrying
out of:
a. ‘building work’ within the meaning of section 36
of the [Design and Building Practitioners Act]; and/or
b. ‘the preparation of regulated designs and other
designs for building work’ within the meaning of section 36 of the
[Design and Building Practitioners
Act].”[40]
- The
matter was put more narrowly in Mr Ashhurst’s and Mr Mobellan’s
closing submissions as follows:
“Specifically, the Plaintiff contends as follows:
a. [Omaya] Investments had substantive control over the
carrying out of works performed by [the Architects];
b. the works performed by [the Architects] were the preparation
of regulated designs and other designs for building work and/or
building work by
reason that residential building within the meaning of the [Home Building
Act]; and
c. [Omaya] Investments is vicariously liable for the breaches
of duty of care by [the Architects] in relation to its assessment
of the
Effective Height issue.”[41]
- Mr
Ashhurst and Mr Mobellan drew attention to my observations in The Owners -
Strata Plan No 84674 v Pafburn Pty
Ltd:[42]
“However, the words ‘otherwise having substantive control’
point to a conclusion to be reached having regard to
all relevant circumstances.
The words used are not ‘otherwise substantively controlling the carrying
out of’ the work.
A person could have ‘substantive control over the
carrying out of’ work notwithstanding the fact, at any particular moment
in time, the person was not actually doing anything to cause that control to be
exercised; provided the person had the ability and
the power to control how the
work was carried out.”[43]
- But
there is no suggestion in this case that Omaya Investments, or indeed any of the
Omaya defendants, played any role in the design
of the Building so far as
concerns its Effective Height. Assuming that it was Omaya Investments that
engaged the Architect, the terms
of the Architect’s fee proposal stated
that the Architect’s function was to “develop the drawings”
necessary
for the project. There is no suggestion in the evidence that any of
the Omaya defendants had any ability or power to control how
the drawings were
prepared.
- Far
from having the ability and power to control how the Architect and Certifier
acted so far concerns the Effective Height of the
Building, the Omaya defendants
left it to those professionals to exercise their expertise in that regard and
received reassurances
from both that the Building did not have an Effective
Height greater than 25 metres.
- Thus:
(a) on 1 September 2009, Mr Cohen of the Certifier wrote to the Omaya
defendants:
“The proposed building being under 25 metres in height is not required to
be sprinklered, however as the carpark has greater
than 40 car parking spaces
[it] is required to be fitted with sprinklers ...”;
(b) on 19 November 2009, Mr Thorne of the Architect wrote to the Omaya
defendants and the Certifier:
“The building is currently at the maximum 25m height limit ...”;
(c) on 24 November 2009, Mr Cohen of the Certifier informed Mr Thorne of the
Architect that:
“... the modification to have the two storey units makes the second level
of the topmost level and if over 25 metres as proposed
the building will require
to be sprinklered”; and
(d) on 24 November 2009, Mr Thorne of the Architect passed on Mr Cohen’s
email to the Omaya defendants.
- Thus,
the Omaya defendants, and Omaya Investments in particular, did not have the
“substantive control” now relied on
by the Owners Corporation to
contend that Omaya Investments engaged in “construction work” for
the purposes of the Design and Building Practitioners
Act.
Vicarious liability?
- As
I have set out above,[44] in their
final closing submissions Mr Ashhurst and Mr Mobellan submitted that Omaya
Investments was “vicariously liable”
for the Architect’s
alleged breach of duty.
- Mr
Ashhurst and Mr Mobellan drew attention to s 5Q of the Civil Liability Act
2002 (NSW).
- That
section provides that:
“(1) The extent of liability in tort of a person
(the defendant) for breach of a non-delegable duty to ensure that
reasonable care is taken by a person in the carrying out of any work or task
delegated
or otherwise entrusted to the person by the defendant is to be
determined as if the liability were the vicarious liability of the
defendant for
the negligence of the person in connection with the performance of the work or
task.” (Emphasis in original.)
- But
here, the Omaya defendants, and Omaya Investments in particular, did not have
the duty to “ensure” that reasonable
care was taken by the Architect
in carrying out its work so far as concerns the Effective Height of the
Building.
- The
Omaya defendants’ obligation in s 37 of the Design and Building
Practitioners Act to take reasonable care no doubt included an obligation to
appoint a properly qualified architect to deal with the Effective Height
issue.
There is no suggestion of any breach by the Omaya defendants of that duty.
- In
the circumstances of this case, I cannot see how the operation of the provisions
of the Design and Building Practitioners Act, when read in light of
s 5Q of the Civil Liability Act, could have the result that any of
the Omaya defendants is “vicariously liable” for any negligence of
the Architect.
Conclusion as to Omaya Investments
- For
these reasons, the Owners Corporation’s claim against Omaya Investments
fails.
The claim against BSM Holdings Pty Ltd
- The
sixth defendant, BSM Holdings Pty Ltd, is the current trustee of the Bechara
family trust.
- Omaya
Investments was the former trustee of that trust.
- The
Owners Corporation’s claim against BSM Holdings is predicated on a finding
that Omaya Investments, as trustee of that trust,
has a liability to the Owners
Corporation arising out of the Effective Height issue.
- As
no such liability has been established, the claim against BSM Holdings must also
fail.
Conclusion
- The
parties should confer and agree on the orders necessary to give effect to these
reasons.
**********
[1] Sprinklers are presently only
in the car park levels.
[2]
Macquarie Dictionary, online ed, accessed 20 November
2024.
[3] Oxford English
Dictionary, online ed, accessed 25 November
2024.
[4] Reduced Level, in metres,
from the Australian Height Datum established within the Australian National
Levelling Network.
[5] (2012) 191
LGERA 160; [2012] NSWSC 1244.
[6]
Ibid at [111].
[7] Ibid at
[96].
[8] Ibid at
[109].
[9] Ibid at
[61].
[10] Ibid at
[68].
[11] Ibid at
[66].
[12] Ibid at
[72]
[13] Ibid at
[74].
[14] Ibid at
[67].
[15] Ibid at
[69].
[16] As a “water
drainage update”.
[17]
[2021] NSWCA 2.
[18] At
[70].
[19] [2014] NSWCA 404 at
[193].
[20] See [43]
above.
[21] At
C12A.
[22] List Statement
C20M(g)(i).
[23] Ibid,
C20M(g)(ii) read with
C20M(c).
[24] At
[5(h)].
[25] At
[40].
[26] The Owners - Strata
Plan 82089 v Omaya Holdings Pty Ltd (No 2) [2024] NSWSC
1188.
[27] At
[16]-[19].
[28] “Rather
than 2007, in the case of the Architect”: this footnote appeared in the
judgment.
[29] See [24] of my
earlier judgment.
[30] See [25]
of my earlier judgment.
[31] At
[29].
[32] At
[34]-[35].
[33] Referring to
Edwards v Olsen; Murphy v Stevens [2003] SASC 238 at [97]- [98] (Mullighan J,
Besanko J agreeing) and The Nominal Defendant v Gabriel [2007] NSWCA 52 at [113]
(Campbell JA).
[34] There is no
such company.
[35] Citing the
familiar observations of Handley JA in Commercial Union Assurance Company of
Australia Limited v Ferrcom Pty Limited (1991)
22 NSWLR 388 at
418.
[36] Home Building Act, Sch
1, cl 2(1)(a).
[37] Referring to
Woolfe v Alexander Sussman t/as A Sussman Construction Consulting Services &
Anor [2001] NSWSC 702 at [18] (McClellan J); Collings Homes Pty Ltd v Head
[2002] NSWSC 1219 at [25] and [28]-[34] (Malpass M); Provincial Homes Pty Ltd v
Doyle [2004] NSWSC 624 at [57] (Wood CJ at
CL).
[38] See [119(6)]
above.
[39] See my observations
in The Owners – Strata Plan No 87060 v Loulach Developments Pty Ltd (No 2)
[2021] NSWSC 1068 at [43], and Oxford (NSW) Pty Ltd v KR Properties Global Pty
Ltd trading as AK Properties Group ABN 62 971 068 965 [2023] NSWSC 343 at
[337].
[40] At
[22].
[41] At
[23].
[42] [2022] NSWSC
659.
[43] At
[25].
[44] At [120] and
[165].
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