A local council acting as principal certifying authority does not owe a duty of care to subsequent purchasers of residential premises to take reasonable care in issuing an occupation certificate to avoid pure economic loss, where the purchasers have the benefit of statutory warranties under the Home Building Act 1989 (NSW) and the ability to negotiate contractual protections. A general expectation that the council will act properly is insufficient reliance to ground such a duty. Under a standard PCA Agreement, the council is not liable to indemnify an owner-builder for defective works where the agreement allocates responsibility for compliance to the owner-builder.
The full text is available to signed-in members, including the 13 later cases that cite this judgment.
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