A builder who undertakes rectification works in exchange for an assignment of the principal's claims against design professionals must demonstrate a sufficient interest in the assigned causes of action beyond the mere desire to recover the cost of rectification. Where the builder is not vulnerable in the relevant sense — having the ability to protect itself through contractual arrangements — no duty of care for pure economic loss will be owed by design or geotechnical consultants to the builder. Under a contract works insurance policy with a standard defective workmanship exclusion, the insured bears the onus of proving both the loss or damage caused directly by the defective workmanship and the costs that would have been incurred in rectifying the defective workmanship immediately prior to the loss.
The full text is available to signed-in members, including the 26 later cases that cite this judgment.