The Supreme Court of NSW recently applied the controversial rule that the amount a party can recover for damages for defective work is not diminished by a subsequent sale of the asset in question. In the case Bannister & Hunter v Transition Resort Holdings (No.2) [2013] NSWSC 1943, the Supreme Court of NSW found that a capping layer and a layer of fill which were placed on a development site in NSW departed substantially from specification as a result of the project manager failing to take reasonable steps to ensure that a consultant supervised the works.
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