Defective Building Work Residential Home - Insolvency


W (Home Owner) v WH (Builder)
September 2010

Watson & Watson act on behalf of the Home Owner in relation to a claim against a Builder which became insolvent and was unable to complete their many projects. Generally, Creditors were out of pocket and an arrangement was entered into in which some Creditors would rank in the administration and some homes which were incomplete would be completed, in effect, with the assistance of the insurer under the Home Warranty Insurance.

Watson & Watson’s client was an Owner whose home had defects which had been constructed nearly tens years previously. The Deed Administrator and the Directors of the Company asserted that the Home Owner was not entitled to rectification of the defects which became evident in relation to a home constructed almost 10 years previously. The Deed Administrator and Directors of the Company asserted that the best the Owner could do was to make a claim as an unsecured creditor, which would result in a minimal recovery and left the Home Owner with a house with defects. Watson & Watson commenced proceedings and various declarations were sought. Watson & Watson resolved the matter on the basis that the defective works would be rectified and, further, a significant contribution was made to the Home Owner’s costs. This was achieved by way of negotiation following the initial proceedings without the need for a hearing.


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