CONTRACTS — Breach of contract — Consequences of breach — Assessment of damages — where claim exceeds the monetary jurisdictional limit of the District Court
NEGLIGENCE — allegations of common law negligence and of breach of statutory duty under the Design and Building Practitioners Act 2020 — Damages — Economic loss — Assessment of damages
Quick Take
1Where assessed damages exceed the District Court's jurisdictional limit and no memorandum of consent has been filed under s 51 of the District Court Act 1973 (NSW), the court will not make an order in excess of the jurisdictional limit, even if it has authority to do so, to avoid creating confusion in future enforcement proceedings.
2Section 51(2)(b) of the District Court Act 1973 (NSW), which confers jurisdiction where no objection is raised prior to three months before trial, cannot operate where the claim only became quantifiable as exceeding the jurisdictional limit days before the hearing, as its literal application in such circumstances would constitute a denial of procedural fairness to the non-appearing party.
3The cost of rectification measure from Bellgrove v Eldridge applies to assess damages for defective and incomplete residential building work, including construction cost escalation to the date of assessment under UCPR r 30.3, a remedial builder's margin, contingency, and consequential loss of rental income.
