J-Corp Pty Ltd v Gilmour

[2005] WASCA 136

Western Australia Court of Appeal

Built by Barristers,
For Australian Law.

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Interrogate

Catchwords

1. Contract
2. › Building contracts
3. › Breach
4. › Damages
5. › Appropriate measure of damages
6. › Cost of reinstatement versus cost of rectification
7. › Whether cost of demolition and reinstatement reasonable
8. › Whether rectification works constitute practical alternative producing contractual conformity
1. Contract
2. › Building contracts
3. › Breach
4. › Damages
5. › Reinstatement damages
6. › Qualification that course adopted must be reasonable
7. › Bellgrove v Eldridge (1954) 90 CLR 613
1. Appeal
2. › Appeal from intermediate appellate court
3. › Fact finding on appeal
4. › Duty of appellate court to draw proper inferences from unchallenged findings
5. › Warren v Coombes (1979) 142 CLR 531

Quick Take

Reinstatement damages under Bellgrove v Eldridge are not limited to cases involving structural defects undermining the stability of a building; they are available wherever rectification works would not give the owner the equivalent of substantial performance of the building contract. Proposed rectification that leaves the owner carrying the risk of continued cracking and reduced earthquake protection is a 'doubtful remedy' that does not constitute a practical alternative to demolition and reinstatement. The possibility that the owner may choose not to demolish and rebuild is not an impediment to recovery of reinstatement costs.