Litigation Update: Tzaneros Investments Pty Limited v Walker Group Constructions Pty Limited [2016] NSWSC 50

Court confirms vulnerability of purchasers, assignment of contractual warranties and the measure of damages in design and construct contracts

Litigation Update

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The recent decision of the Supreme Court of New South Wales in Tzaneros Investments Pty Limited v Walker Group Constructions Pty Limited [2016] NSWSC 50 has confirmed that purchasers of commercial property are not owed a duty of care by third party contractors in respect of building defects if the purchasers are not considered to be vulnerable. 

The decision further confirms that assignment of contractual warranties can be effective to assign accrued causes of action and, separately, that the measure of damages for defective work will generally be the cost of rectification works that are reasonable and necessary to achieve conformance with what was required under the contract, together with damages for breach of contract.