Brookfield wins Court decision over Owners Corp

08/10/2014 10:45 pm

court2The High Court has unanimously held that developer Brookfield ­Multiplex, the builder of the $60 million Chelsea apartment tower in ­Chatswood Sydney, did not owe a duty of care to the Owners Corporation which lost money from defects. The full bench overturned a decision won by the Owners Corporation, which includes Mantra, in the Supreme Court.

Emanuel Confos, partner at Gilbert + Tobin, for Brookfield, said the result would have significant ­implications for the industry.

“This is a landmark decision for the construction industry because it ­clarifies an issue that has been around for many years and that is whether a builder owes a duty in contract and tort for a commercial development,” Mr Confos said.

“And I believe the High Court has unanimously decided that no duty in tort is required only duty in contract,” he said.

Via AFR