Benchmark
A daily Bulletin listing our choice of Decisions of Superior Courts of Australia.
Benchmark

Construction

Thursday, 30 October 2014
Executive Summary (One Minute Read)
Dansar Pty Ltd v Byron Shire Council (NSWCA) - negligence - pure economic loss - delay in obtaining development approval - no duty of care owed by Council
Cornerstone Property & Development Pty Ltd v Suellen Properties Pty Ltd (QSC) - equity - trusts and trustees - director of company caused another company to enter contract for purchase of land - no breach of fiduciary duties
J M Kelly (Project Builders) Pty Ltd v Toga Development No. 31 Pty Ltd (No 6) (QSC) - pleadings - building contract - leave to file and serve fifth amended statement of claim 
Summaries With Link (Five Minute Read)
Dansar Pty Ltd v Byron Shire Council [2014] NSWCA 364
Court of Appeal of New South Wales
Macfarlan, Meagher & Leeming JJA
Negligence - pure economic loss - Council assessed spare capacity in treatment plant and resolved to allocate capacity to new developments - company sought approval of development of property it owned - deemed refusal of application - company's appeal dismissed by Land and Environment Court - company lodged new applications which were approved - company alleged Council breached duty of care to it and claimed damages for economic loss as result of delay in approving its application - trial judge held Council did not owe posited duty of care - held (by majority): asserted duty of care incompatible with Council's unconstrained exercise of its statutory functions and obligations - no reliance or assumption of responsibility - no relevant vulnerability - at no time was company relying on assurance from Council that it would allocate available capacity in particular way and exercise reasonable care in doing so - company had no right to have any further load committed to sewerage system - company did not have any right or interest, the enjoyment of which depended on exercise of care by Council, or existence of which depended on exercise of care by Council in performance of function it was obliged to undertake - appeal dismissed.
Dansar Pty Ltd
Cornerstone Property & Development Pty Ltd v Suellen Properties Pty Ltd [2014] QSC 265
Supreme Court of Queensland
Jackson J
Equity - trusts and trustees - plaintiff company entered contract for purchase of land – second defendant was director and shareholder of company – both other directors resigned – one of the other directors was only other shareholder – other directors told second defendant their business dealings were at an end – second defendant allowed contract to purchase land to lapse – second defendant was sole director of first defendant - second defendant caused first defendant to enter new contract on same terms as plaintiff's contract – plaintiff claimed second defendant acted in breach of fiduciary duty or duty under ss181(1) or 182(1) Corporations Act 2001 (Cth) as director of plaintiff in causing first defendant to enter contract to buy lot and in proceeding with project - claims against first defendant were based on liability of a person who had received and become chargeable with trust property, or who had assisted with knowledge in a dishonest and fraudulent design on part of the trustees, or who was the company alter ego of a defaulting director - held: second defendant did not act in breach of fiduciary duty without informed consent - second defendant acted in good faith in best interests of plaintiff and for a proper purpose and did not improperly use her position as a director of the plaintiff - plaintiff not entitled to the relief it claimed against either the first or second defendants.
Cornerstone Property & Development Pty Ltd
J M Kelly (Project Builders) Pty Ltd v Toga Development No. 31 Pty Ltd (No 6) [2014] QSC 262
Supreme Court of Queensland
Flanagan J
Pleadings - applicant sought leave to file and serve a proposed fifth further amended statement of claim - most significant amendment sought was addition of paragraphs which pled that liquidated damages provisions of a building contract between applicant and defendant was void and of no effect as a penalty - delay - whether pleadings inconsistent with prior court rulings - held: leave granted to file and deliver a fifth amended statement of claim containing the penalty plea - leave granted to file and deliver amended reply and answer which cross-referenced to penalty plea - any plea in relation to variation claim to be pleaded in accordance with Court's reasons.
J M Kelly (Project Builders) Pty Ltd