[2025] NTSC 80
General information, not legal advice.
Supreme Court of the NT
2025-11-17
Original judgment source is linked above.
PRACTICE AND PROCEDURE - Pleadings - Amending Pleadings - Mistake in the name of the party - Principles applicable to applications for leave to amend pleadings for mistake in name of party - Power to add a party where omission was occasioned by mistake - Discretion of the Court is limited - Evidence sufficient to establish intention to join a party omitted by mistake.
PRACTICE AND PROCEDURE - Pleadings - Joinder - Joinder of a party where the limitation period has expired - Absence of formal application for an extension of time but amendment seeking application sought - Whether a joinder application falls afoul of the "no useful purpose" rule -- Discretion of the Court exercised to allow joinder.
PRACTICE AND PROCEDURE - Pleadings - Joinder - Joinder of a party where service of amended writ is sought to be affected in New Zealand -Whether leave is required - principles which apply.
Supreme Court Rules 1987 (NT), rr 1.09, 7.01, 7.02, 9.06, 9.06(b)(ii), 9.11(3)(a), 36.01(1)-(7), 36.03, 63.11, 63.72(9).
Supreme Court Act 1979 (NT), s 21.
Limitation Act 1981 (NT), ss 44, 44(1) and (3), 48.
Development Act 1993 (SA), ss 73, 73(1).
Building Act 1993 (Vic), s 134(1).
Competition and Consumer Law Act 2010 (Cth) sch 2 ('Australian Consumer Law'), ss 18, 54(1), 59(1).
Wickham Point Pty Ltd v Commonwealth of Australia [2018] NTSC 7;
Bridge Shipping Ltd v Grand Shipping SA [1991] HCA 45; (1991) 173 CLR 231; AGC
Industries Pty Ltd v The Trustee for Trepang Services Unit Trust & Anor
[2022] NTSC 30; Smart v Smart (1992) 2 NTLR 19; Owners of the Szardinia
Sulcis v Owners of the Al Tawwab [1991] 1 Lloyd's Rep 201; Tomsimmat &
Associates Pty Ltd v G & R Investments Pty Ltd (1993) 25 1PR 545; Mannin
Pty Ltd v Metal Roofing and Cladding Pty Ltd [1997] NTSC 119; Dee Jay
Engineering Pty Ltd v Moline Management Pty Ltd [1996] NTSC 60; (1996) 133 FLR 347;
Creedon v Measey Investments Pty Ltd [1990] NTSC 15; Ketteman v Hansel
Properties Ltd [1988] 1 All ER 38; Patten v Lend Lease Funds Management
[2010] NTSC 51; Foster v Vin Keneally & Associates Pty Ltd (1987) 48
NTR 51; Brirek Industries Pty Ltd v McKenzie Group Consulting (Vic) Pty
Ltd [2014] NSCA 165; Belgravia Nominees Pty Ltd v Lowe Pty Ltd [2017]
WASCA 127; Wardley Australia v Western Australia [1992] HCA 55; (1992) 175 CLR 514;
Northern Territory v Bellamack Pty Ltd [2024] NTSC 66; Walford v
Anglican School for Girls Incorporated v Romaldi Constructions Pty Ltd &
Anor [2020] SADC 146; Woolcock Street Investments Pty Ltd v CDG Pty Ltd
[2004] HCA 16; (2004) 216 CLR 515; Makawe Pty Ltd v Randwick City Council [2009]
NSWCA 412; Owners Corporation Strata Plan 76841 v Ceerose Pty Ltd
[2017] NSWCA 140; Duncan & Anor v Bert Farina Constructions Pty Ltd
[2023] SADC 37; Johnson v Northern Territory of Australia [2014] NTSC
18; Johnson v Northern Territory of Australia [2016] NTSC 49; Phillis v J Anderson Construction Pty Ltd & Ors; Stephen & Anor v J Anderston Constructions Pty Ltd & Ors [2020] NTSC 70; Zurich Insurance Company Ltd v Koper [2023] HCA 25; Weldon v Neal [1887] UKLawRpKQB 161; (1887) 19 QBD 394, referred to.
P Hanford, In Limitation of Actions - Laws of Australia (3rd Ed, 2011).
Plaintiffs: Mills Oakley and Piper Alderman (from 21 July 2025)
KTLP Enterprises Pty Ltd & Anor v GT Builders Pty Ltd [2025] NTSC 80
(1) Body Corporate for 30-38 Kalymnos Drive Karama Unit Title Scheme (BC 2014/051) is joined as the Third Plaintiff to this proceeding.
(2) Buteline NZ Limited (New Zealand company number 611728 and business number 9429038766220) ('Buteline') is joined as the Second Defendant to this proceeding.
(3) The Plaintiffs have leave under Rule 7.02(2) to serve these proceedings on the Second Defendant in New Zealand.
(4) The Writ filed on 5 July 2024 in this proceeding is amended in accordance with the second amended writ which is annexure LJW-5 to the affidavit of Lecia Jade Wood made 14 May 2025.
(a) Structure of the buildings standing on each unit including walls, floors, ceilings and roofs, forms part of the unit and is not the common property.
(b) Horizontal unit boundaries are the upper surface floor slabs and the under surface of the ceiling slab/roof structure including structural beams.
(c) Vertical unit boundaries are the centrelines of walls where they abut other units, or the external face of walls where they abut Common Property.
Power to Amend Pleading for Mistake under Rule 36.01(4)
(1) For the purpose of determining the real question in controversy between the parties to a proceeding or of correcting a defect or error in a proceeding or of avoiding multiplicity of proceedings, the Court may at any stage order that a document in the proceeding be amended or that a party have leave to amend a document in the proceeding.
(2) In this Order document includes originating process, an endorsement of claim on originating process and a pleading.
(3) An endorsement of claim or pleading may be amended under subrule (1) notwithstanding that the effect is to add or substitute a cause of action arising after the commencement of the proceeding.
(4) A mistake in the name of a party may be corrected under subrule (1) whether or not the effect is to substitute another person as a party.
(5) Where an order to correct a mistake in the name of a party has the effect of substituting another person as a party, the proceeding shall be taken to have commenced with respect to that person on the day the proceeding commenced.
(6) The Court may, notwithstanding the expiration of a relevant limitation period after the day a proceeding is commenced, make an order under subrule (1) where it is satisfied that any other party to the proceeding would not by reason of the order be prejudiced in the conduct of his claim or defence in a way that could not be fairly met by an adjournment, an award of costs or otherwise.
(7) For the purpose of subrule (6) any other party to the proceeding includes a person who is substituted as a party by virtue of an order made to correct a mistake in the name of a party.
Rule 36.01(1) gives the Court a broad discretionary power to allow amendments to documents and that includes pleadings. Subject to case management requirements and the public interest in finalising litigation promptly and properly utilising the Court's resources, in general Courts liberally allow amendments to pleadings provided that the application is made in good faith, any prejudice to the other party can be adequately addressed with an order for costs and the amendment is not futile, namely that the amended pleading would not be liable to strike out.
(a) She is a partner of the firm (or was at the time) on the record for the First and Second Plaintiffs, and was a partner for the firm (and a former firm) who represented them when original instructions were taken and proceedings were commenced. She was the partner in charge of the matter and ultimately responsible for the decisions made in respect to representation.
(b) Instructions were received on or about 14 July 2023 from a director and the principal of the Second Plaintiff, Mr La Pira. At about that time, documents were provided by Mr La Pira to Ms Cleveland's firm, which included documents evidencing pipe failures at his company's leased premises[6] at 30-38 Kalymnos Drive, Karama, and the construction contract between the First Plaintiff and the Defendant for construction of the units.
(c) After it became clear that the Second Plaintiff, as the owner of the Development, was paying the cost of the rectification works caused by the pipe failures, the Second Plaintiff was added as a client of Ms Cleveland's firm on 16 August 2023.
(d) Further investigations were undertaken by the relevant Plaintiffs' solicitors, including obtaining copies of the plans of the unit title schemes for the units. However, it had not occurred to Ms Cleveland, or to the best of her knowledge or anyone else involved, that the body corporate (not the Second Plaintiff) may own the pipes which were failing and causing damage, and which required repair, and may have suffered its own recoverable loss itself in that capacity and therefore may also need to make a claim against the Defendant in its own name to ensure that all losses caused by the pipe failures were recovered.
(e) On or about 27 June 2024, another of the Plaintiffs' solicitors, who was working on the file, drafted the writ for Ms Cleveland to settle in order to commence proceedings against the Defendant. That writ only named the First and Second Plaintiffs. Ms Cleveland settled the writ in the terms in which it was filed on 5 July 2024, naming only the First and Second Plaintiffs. A copy was sent to Mr La Pira on 4 July 2024 for instructions to file and following those instructions the writ was filed.
(f) At the time of settling the writ and in seeking and obtaining instructions, Ms Cleveland believed that the First and Second Plaintiffs were the only entities who might have suffered loss, who might have a claim against the Defendant and who therefore needed to be named as plaintiffs. Had it occurred to Ms Cleveland that the body corporate may have also suffered a distinct and separate loss as a result of the pipe failures, she would have added it as the third plaintiff to the draft writ and sought instructions. She believes those instructions would have been given by Mr La Pira, given that the Second Plaintiff owns all of the units (and is therefore the only member of the body corporate).
(g) It was only in or about November 2024, when Senior Counsel was briefed, that Ms Cleveland became aware that the body corporate may have a distinct and separate loss as a result of the pipe failures and should be named as a plaintiff, and that the basis upon which she had thought that only the First and Second Plaintiffs had suffered recoverable loss when she settled the writ, was mistaken.
In one sense a plaintiff always intends to sue the person who is liable for the wrong which he has suffered. But the test cannot be as wide as that. Otherwise there could never be any doubt as to the person intended to be sued, and leave to amend would always be given. So there must be some narrower test. In Mitchell v Harris Engineering the identity of the person intended to be sued was the plaintiff's employers. In Evans v Charrington it was the current landlord. In Thistle Hotels v MacAlpine the identity of the person intending to sue was the proprietor of the hotel. In The Joanna Borchard it was the cargo-owner or consignee. In all these cases it was possible to identify the intending plaintiff or intended defendant by reference to a description which was more or less specific to the particular case. Thus if, in the case of an intended defendant, the plaintiff gets the right description but the wrong name, there is unlikely to be any doubt as to the identity of the person intended to be sued. But if he gets the wrong description, it will be otherwise.
It is clear that if a solicitor for an insurer, intending to issue proceedings in the name of a person whom he identified by a particular description, was mistaken as to the name of the person who answered that description, that is a mistake in the name of the party.
(a) Instructions in respect to the claim by the First Plaintiff were received on about 14 July 2024. There was no evidence as to what the substance of those instructions were.
(b) On or about 16 August 2024, the Second Plaintiff was added as a client "after it became clear that Joondanna, as the owner of the development, was paying for the costs of the rectification works caused by the pipe failures". There was no evidence as to the substance of any instructions to act on behalf of the Second Plaintiff or how precisely it was made clear that it was incurring rectification costs for damage being caused by the leaking pipes. It could be implied that Ms Cleveland was instructed that the Second Plaintiff was incurring costs as a result of having to make repairs to its building (as the owner of the affected residential units and/or possibly as the responsible landlord in respect to its tenants), was adversely affected by the leaking pipes, and presumably as a result would have a legal claim against the Defendant in respect to liability arising from the damage.
(c) Investigations were undertaken in respect to obtaining copies of the plans of the unit title schemes. It had not appeared to anyone, at that time, that another entity, the owner of the common property, the body corporate, may also have a claim.
(d) On or about 27 June 2024, the writ was drafted by another solicitor and settled by Ms Cleveland naming only the First Plaintiff and Second Plaintiff. A copy was sent to the client, Mr La Pira, who gave instructions to file it. There is no evidence as to those instructions. It is not clear if the lawyers were acting on express instructions from Mr La Pira to commence proceedings in the name of the First and Second Plaintiff, and that is what they did (as was the case in Mannin), or whether Mr La Pira went along with the suggestion or advice of his lawyers (as was the case in AGC). As there is no direct evidence in respect to the intention of Mr La Pira, for the purposes of this application, the relevant decision-maker, in terms of the intention to file the writ, is the Plaintiff's solicitor Ms Cleveland, not Mr La Pira.
At any stage of a proceeding the Court may order that:
(b) any of the following persons be added as a party:
(ii) a person between whom and a party to the proceeding there may exist a question arising out of, or relating to or connected with, a claim in the proceeding which it is just and convenient to determine as between that person and that party as well as between the parties to the proceeding;
Joinder of a party where the limitation period has expired
The grant or refusal of leave to alter the parties to a proceeding is at the discretion of the court. It was a settled rule of practice in the court immediately prior to the commencement of the new rules that leave would be refused once time had expired, and in the absence of anything in the rules to the contrary, that practice should continue. As such, it is the usual practice to refuse leave under r 9.06 to add or substitute a plaintiff once the limitation period applying to the claim against the defendant has expired: Creedon v Measey Investments Pty Ltd [1990] NTSC 15; (1990) 69 NTR 19 at 29-30; Mannin Pty Ltd v Metal Roofing and Cladding Pty Ltd [1997] NTSC 119. Likewise, the usual rule of practice is that a plaintiff will not be given leave under r 9.06 to add a defendant after the period of limitation applying to its claim against that defendant has already expired. This rule of practice is based on the concept that to allow such an addition would serve no useful purpose because the new defendant, as a party, would have the unanswerable defence of a time-bar. Rule 9.11(3)(a) reflects this basis for the rule of practice: Yamamori (Hong Kong) Ltd v Clark [1994] NTSC 111 at [66]; Creedon, above, at [52]-[54]. However, whilst joinder in such circumstances is routinely refused, this is a rule of practice only and it is not an immutable rule: Yamamori, above, at [66]; Gwalwa Daraniki Association Inc v Michael Chin [2017] NTSC 51 at [44].
There is no corresponding provision in the case of a change of plaintiff, but by analogy the court would treat the proceeding (so far as it relates to the new plaintiff) as having commenced on the day the originating process is amended in accordance with r 9.11(1).
An extension of time is required before the joinder of the Third Party as a Defendant can occur given the general rule that the addition of a defendant after the expiration of a limitation period is not allowed.
However, in a case in which a defendant indicates an intention to plead a limitation defence to a cause of action barred by statute at the time it is proposed to be added by amendment, the court will disallow the amendment if there is no doubt that such a defence would defeat the claim.
Generally speaking, however, limitation issues are best decided at trial, with the consequence that an amendment will only be disallowed on the basis of such a defence in the clearest case. Examples of the type of case in which the availability of a limitation defence will be sufficiently clear and uncontroversial as to justify disallowance of an amendment which would inevitably be defeated by such a defence are provided by the circumstances in Dye and Rossen. However, in all but cases of that character, the appropriate course is to allow the amendment (assuming there is no other valid objection to it), enabling the defendant to plead any limitation defence which can then be determined at trial.
The question which resolves this appeal is whether this is such a clear case, where the amendment sought should be disallowed on the basis that it is futile because there is a limitation defence that would inevitably succeed. That is why the foreshadowed application by the plaintiffs pursuant to s 38 of the Limitation Act is significant.
...the judge had then to ask whether this was one of those cases in which it was so clear that a foreshadowed limitation defence would succeed such that the amendment should be disallowed on the ground that it would be futile.
In this case the judge answered the first question affirmatively in relation to the amendment the subject of this appeal. Although there might be scope to challenge that conclusion, that is not the course the plaintiffs have taken. The outcome of this appeal therefore turns on the second question, which is the question of whether it is so clear that the limitation defence foreshadowed by the defendants will succeed that leave to amend should have been refused. Because of the possibility that the plaintiffs might succeed in an application made pursuant to s 38 of the Limitation Act and obtain an order which would overcome any pleaded limitation defence, in the circumstances of this case the judge should have concluded that this was not one of those cases in which a foreshadowed limitation defence would necessarily succeed, and allowed the amendment.
We should, however, state in the plainest of terms that we regard it as undesirable that limitation questions of the kind under consideration should be decided in interlocutory proceedings in advance of the hearing of the action, except in the clearest of cases. Generally speaking, in such proceedings, insufficient is known of the damage sustained by the plaintiff and of the circumstances in which it was sustained to justify a confident answer to the question. Magman International illustrates the problems which can arise, particularly in a case involving foreign loans.
Section 159 Application of limitation on taking action
(1) Section 160 applies to an action for damages for economic loss and rectification costs resulting from defective construction of building work or other work carried out under this Act.
(2) The cause of action may be founded on contract or tort (including a cause of action for damages for breach of a statutory duty) or be a cause of action to recover money recoverable by virtue of this Act.
(3) Section 160 does not affect a right to recover damages for death or personal injury resulting from defective construction.
Section 160 Limitation on time when action may be taken
(1) An action is not maintainable by a plaintiff or a person claiming on behalf of a plaintiff if it is brought after the end of a limitation period of 10 years after the date on which the cause of action first accrues.
(2) The cause of action accrues on the date of the grant of occupancy certification in relation to the building work that is the subject of the action or, if occupancy certification is not granted, on the date of first occupation of the building concerned after completion of the work.
(1) To the extent to which they are inconsistent with any other law in force in the Territory, the provisions of this Part prevail.
(1) Subject to this section, where this or any other Act, or an instrument of a legislative or administrative character prescribes or limits the time for:
(b) doing an act, or taking a step in an action; or
(c) doing an act or taking a step with a view to instituting an action,
a court may extend the time so prescribed or limited to such an extent, and upon such terms, if any, as it thinks fit.
Are the damages claimed outside the scope of those referred to in s 159 of the Building Act 1993 (NT)?
The second, is that part of the section which reads 'no action for damages for economic loss or rectification costs.
This part of the provision identifies the relief sought.
The Act came into operation on 15 January 1994 at a time when there was some doubt as to whether the cost of rectifying defective building work was properly regarded as pure economic loss.
At least since Bryan v Maloney, which was decided in 1995, a claim for rectification costs in the absence of injury to persons or property is a claim for pure economic loss.
In any event, in this matter there is no dispute that the action brought by Walford against DesignInc claims damages for rectification costs.
The damage for which the appellant seeks a remedy in this case is the economic loss it alleges it has suffered as a result of buying a building which is defective. Circumstances can be imagined in which, had the defects not been discovered, some damage to person or property might have resulted from those defects. But that is not what has happened. The defects have been identified. Steps can be taken to prevent damage to person or property.
A view was adopted for a time in England that, because there was physical damage to the building, a claim of the kind made by the appellant was not solely for economic loss. That view was questioned in Sutherland Shire Council v Heyman and rejected in Bryan v Maloney. It was subsequently also rejected by the House of Lords in Murphy v Brentwood District Council. There is no reason now to reopen that debate and neither side in the present matter sought to do so. The damage which the appellant alleges it has suffered is pure economic loss.
The trial judge's conclusion that the damage claimed was pure economic loss was based virtually wholly on the extracted passage from Woolcock Street. That passage is:
"19. The damage for which the appellant seeks a remedy in this case is the economic loss it alleges it has suffered as a result of buying a building which is defective. Circumstances can be imagined in which, had the defects not been discovered, some damage to person or property might have resulted from those defects. But that is not what has happened. The defects have been identified. Steps can be taken to prevent damage to person or property.
20. A view was adopted for a time in England ... that, because there was physical damage to the building, a claim of the kind made by the appellant was not solely for economic loss. That view was questioned in Sutherland Shire Council v Heyman [[1985] HCA 41; [1985] HCA 41; (1985) 157 CLR 424] and rejected in Bryan v Maloney. It was subsequently also rejected by the House of Lords in Murphy v Brentwood District Council [[1991] 1 AC 398]. There is no reason now to reopen that debate and neither side in the present matter sought to do so. The damage which the appellant alleges it has suffered is pure economic loss". (italics in original; emphasis by bold added)
The reference in [19] to potential damage to person or property, and to the identification of the defect and the prospect of rectification before such damage occurred, taken alone, might be seen to leave open the possibility that, once damage to property had actually occurred (as distinct from the potentiality of damage), then the damage claimed can be transformed from pure economic loss to actual property damage. Any such notion is put to rest by what follows in [20] and also by the judgment in Bryan v Maloney.
In Bryan v Maloney, a house had been built with inadequate footings. The damage that ensued included cracks in the walls - that is, real physical damage. Nevertheless, it was held to be "mere economic loss" (p 617) because it was distinct from, and not consequent upon, ordinary physical injury to person or property.
An attempt was made, in the written submissions, to distinguish the present case from Bryan v Maloney. It was said that the damage in Bryan v Maloney was due to a defect in the structure of the house; but that, in the present case, the structure itself was not inherently defective. It was argued that Bryan v Maloney does not deal with every case of physical damage to a building where the damage does not arise from structural defects inherent in the building.
I would reject this attempt. I see no relevant distinction in the defect here shown (the effect of inundation by water including the deposit of stain - causing sediment), and the subsequent property damage, and the defect (inadequate footings) and the actual damage (cracking) in Bryan v Maloney.
Reliance was also placed upon a decision of this Court (Sutherland Shire Council v Becker [2006] NSWCA 344; (2006) 150 LGERA 184) as one distinguishing Bryan v Maloney, and treating the claim there made as one for property damage as distinct from pure economic loss. Attention needs to be paid to only one paragraph of the judgment of Bryson JA to reject that submission. His Honour said:
"70. The nature of the loss which the respondent alleges was in my opinion plainly damage to property: the fill deposited on Lot 7 lost lateral support and slipped away, carrying with it vegetation and trees which formed much of the backyard, and causing the fracture of a water pipe which appears to have carried water to a garden tap ... The claim cannot be seen as a claim for economic loss in the sense in which structural stress to the warehouse and office complex in Woolcock Street ... was said to be economic loss: the loss claimed went beyond diminution in value of an improvement. The respondent's case requires the deposit of fill in Lot 7 to be considered as in some way a fixture, an improvement or a structure on her land, and the risks to which it was exposed which are to be considered in relation to the existence of a duty of care are risks to its stability created by the manner in which the appellant dealt with the subdivision application".
In no possible way can Becker be seen as providing an analogy to the damage claimed in the present case.
In the light of the passage from Woolcock Street which I have extracted above, I see no error in the conclusion that the damage here claimed was pure economic loss.
Is the Limitation Period in the Building Act 1993 (NT) amenable to s 44 of the Limitation Act 1981 (NT)?
159 Limitation on time when action may be taken
(1) Despite the Limitation of Actions Act 1936, or any other Act or law, no action for damages for economic loss or rectification costs resulting from defective building work (including an action for damages for breach of statutory duty) can be commenced more than 10 years after completion of the building work.
(2) This section does not affect an action to recover damages for death or personal injury resulting from defective building work.
(3) The period prescribed by subsection (1) cannot be extended.
Section 44 of the Limitation Act provides the power to extend a time limitation prescribed in "this or any other Act". In Verschuuren v Tom's Tyres Corporation Ltd the Court of Appeal held that the "broadly expressed power should only be confined within narrow limits if there is a plain and unambiguous provision elsewhere in the Act which require this to be done". The section will have application where an Act prescribes a limitation period but says nothing about an extension of time. It will apply to legislative time limits unless there is, in the particular piece of legislation, an expression of intent on the part of the legislature to the contrary. In this legislation, there is no such expression of intent.
As the plaintiff submitted, it would have been a simple matter for the legislature to have expressed an intention to exclude s 44(1) of the Limitation Act as it did, for example, in relation to defamation actions in s 44(3)(aa) of the Act.
The purpose of provisions such as s 44(1) of the Limitation Act is the beneficial object of eliminating "the injustice a prospective plaintiff might suffer by reason of the imposition of a rigid time limit within which an action was to be commenced". If the interpretation suggested by the defendant is accepted, the capacity for the limitation period to cause grave injustice is readily apparent. It is most unlikely that the legislature intended to create such a tight timeframe with no capacity for such grave injustices to be remedied. No reason for adopting such an approach was suggested by the defendant. Had that been the intention of the legislature, we would have expected some explanation to have been provided. The second reading speech is silent on the topic. We would also have expected the use of clear language in either s 162 of the Police Administration Act or s 44 of the Limitation Act to that effect.
The limitation of action provided by s 162 of the Police Administration Act creates a bar to the remedy rather than extinguishing the right of action. In our opinion s 44(1) of the Limitation Act has application to this provision.
However, there is no uniformity in the legislative provisions through which this time limit has been introduced. Indeed, they are each expressed quite differently. Whilst some of these provisions (for example, in New South Wales and the Australian Capital Territory) make it plain they are intended merely as long stop provisions, others are less clear and at least leave open a construction which would have them operating to the exclusion of shorter limitation periods where they overlap in their operation.
Is the claim a consumer guarantee dispute which ousts the jurisdiction of the Court?
The Trans-Tasman Proceedings Act 2010 (Cth) ("the Trans-Tasman Proceedings Act") is designed to streamline the process for resolving civil proceedings with trans-Tasman elements and to implement in Australian law the Agreement between the Government of Australia and the Government of New Zealand on Trans-Tasman Court Proceedings and Regulatory Enforcement ("the Trans-Tasman Agreement").
Article 4 of the Trans-Tasman Agreement provides, amongst other things, that "[i]nitiating process in civil proceedings in a court within the territory of one Party may be served, without leave of a court, in the territory of the other Party" and that "[s]ervice rendered in accordance with this Article shall have the same effect as if it had occurred in the jurisdiction of the court in which the initiating process was issued". The Trans-Tasman Agreement defines "court within the territory of a Party", for Australia, to include any court of a State.
Part 2 of the Trans-Tasman Proceedings Act, which is headed "Service in New Zealand of initiating documents issued by Australian courts and tribunals", is specifically designed to implement Art 4 of the Trans-Tasman Agreement in Australian law. Within the meaning of the Act, an "Australian court" includes a court of a State and an "initiating document" in relation to an Australian court is a document by which a civil proceeding is commenced in that court or by reference to which a person becomes a party to a civil proceeding in that court.
Key provisions within Pt 2 are ss 9 and 10. Subject to limited exceptions, s 9(1) permits an initiating document issued by an Australian court that relates to a civil proceeding in that court to be served under the Part in New Zealand, without need for the court to give leave for that service and without need for the court to be satisfied that there is a connection between the proceeding and Australia. Section 9(2) qualifies the permission granted under s 9(1) by requiring the initiating document to be served in New Zealand in the same way that the initiating document is required or permitted to be served in the place of issue under the procedural rules of the Australian court. Section 10 provides that service of an initiating document in New Zealand under s 9 has the same effect, and gives rise to the same proceeding, as if the initiating document had been served in the place of issue.
(a) Buteline designed, engineered, manufactured and supplied a product called "Buteline Polybutylene-1" potable water pipe (pipe) to Australian consumers.
(b) Buteline provided an express warranty in respect of the pipe through its Australian subsidiary (which no longer conducts business in Australia).
(c) The Defendant purchased, and through its plumbing contractor, installed the pipe in the relevant building.
(d) In June 2023 the Defendant became aware of leaks in the building and subsequent investigations have determined that the pipes throughout are deteriorating and failing, causing water ingress and damage to the building. The failure of the pipes is likely due to chlorine attack caused by oxidative degradation which is systemic throughout the building.
(e) The claims against the proposed Second Defendant include:
(i) a breach of duty to take reasonable care to ensure the pipe, it had designed, engineered, manufactured and exported to Australia, was suitable for that use and fit for purpose, including residential properties in Darwin, so as not to cause damage to their property;
(ii) misleading and deceptive conduct in contravention of s 18 of the ACL in Schedule 2 of the Competition and Consumer Act 2010 (Cth);
(iii) breach of the guarantee that the pipe would be of actable quality in contravention of s 54(1) of the ACL;
(iv) breach of the guarantee contained in the express/statutory warranty in contravention of s 59(1) of the ACL;
(f) Damages in negligence and compensation pursuant to s 236 of the ACL are sought.
(g) As the actual loss was suffered in June 2023, when the pipes leaked, the cause of action did not accrue until then and consequently the Plaintiffs are within the six-year limitation period. Additionally, if any limitation period has expired, an extension is similarly sought under s 44 of the Limitation Act 1981 (NT).
[1] Affidavit of Bernadette Raumteen made 30 January 2025 ('Raumteen Affidavit'), Annexure BR-7.
[2] The pipes being fixtures and therefore part of the land.
[3] Wickham Point Pty Ltd v Commonwealth of Australia [2018] NTSC 7 at [3] ('Wickham Point').
[4] Bridge Shipping Ltd v Grand Shipping SA [1991] HCA 45; (1991) 173 CLR 231 at 260-261 ('Bridge Shipping').
[5] See AGC Industries Pty Ltd v The Trustee for Trepang Services Unit Trust & Anor [2022] NTSC 30 at [10] ('AGC Industries').
[7] Smart v Stuart (1992) 2 NTLR 19 at 3.
[9] Owners of the Szardinia Sulcis v Owners of the Al Tawwab [1991] 1 Lloyd's Rep 201 ('Al Tawwab').
[10] Bridge Shipping at p 262 citing Lloyd LJ.
[11] Tomsimmat & Associates Pty Ltd v G & R Investments Pty Ltd (1993) 25 1PR 545 at 551 per Bryson J.
[12] Mannin Pty Ltd v Metal Roofing and Cladding Pty Ltd [1997] NTSC 119 ('Mannin').
[13] Dee Jay Engineering Pty Ltd v Moline Management Pty Ltd [1996] NTSC 60; (1996) 133 FLR 347 at 252, by Mildren J ('Dee Jay Engineering').
[15] On appeal from the refusal to allow the amendment.
[18] It is not clear why only 32 Kalymnos Drive is referred to, the lots, prior to the consolidation of lots into one Lot 7073 and registration of the unit title scheme the blocks of land were Lots 6751 to 6756 known as 1 Manunda Terrace, 30, 32, 34, 36 and 38 Kalymnos Drive Karama. The proposed amendment the subject of this application seeks to clarify that ownership and the ownership of the units as between the Second Plaintiff and the body corporate.
[19] Presumably the Units as defined.
[20] Unlike Mannin, where there was an intention to commence in the name of the plaintiff, it was just that that plaintiff had no remedy against the defendant.
[21] M Grant, Civil Procedure Northern Territory at paragraph 5.9.515.
[22] Creedon v Measey Investments Pty Ltd [1990] NTSC 15 ('Creedon') at p 29.
[23] See Ketteman v Hansel Properties Ltd [1988] 1 All ER 38 at p 47.
[24] Cited in Creedon [1990] NTSC 15; (1990) 69 NTR 19 at p 29.
[25] An application for an extension of time is an interlocutory application.
[26] Patten v Lend Lease Funds Management [2010] NTSC 51 ('Patten').
[28] It is not apparent on the face of the Court's reasons, which simply states the extension be granted and orders made accordingly.
[29] Forster v Vin Keneally & Associates Pty Ltd [1987] NTSC 50; (1987) 48 NTR 51.
[30] On either argument advanced by the Plaintiffs they will need to rely on s 44 of the Limitation Act 1981 (NT), either to extend the limitation period in the Building Act 1993 (NT) or the limitation periods for contract and tort (if expired) in the Limitation Act 1981 (NT). See Brirek Industries Pty Ltd v McKenzie Group Consulting (Vic) Pty Ltd [2014] VSCA 165 at 105.
[31] And Rule 1.10 which requires the Court exercising powers to ensure all questions in the proceeding are resolved justly, promptly, economically and in proportion to the nature of the dispute.
[32] [2017] WASCA 127 ('Belgravia')
[33] Noting a statutory limitation bars the remedy rather than right, must be pleaded to be invoked, and can be waived.
[34] Belgravia at 46-47 and 54-55.
[35] Referred to herein as "long stop" provisions.
[36] Wardley Australia v Western Australia [1992] HCA 55; (1992) 175 CLR 514 at 533 ('Wardley').
[37] This aspect assumes the long stop provisions applied, had expired but could be extended.
[38] This aspect assumed that the limitation period in the Building Act 1983 (NT) did not apply at all.
[39] See also AGC Industries at [37].
[40] See also Northern Territory of Australia v Bellamack Pty Ltd [2024] NTSC 66 at [52].
[41] As set out in proposed paragraph 12A of the endorsement of claim.
[42] As set out in proposed paragraph 7A of the endorsement of claim.
[43] Presumably the claim for pure economic loss is made by reference to "financial loss" in clause 7A of the claim. If there is such a claim, then it will presumably be caught by the Building Act 1983 (NT).
[44] See Walford Anglican School for Girls Incorporated v Romaldi Constructions Pty Ltd & Anor [2020] SADC 146 at [90-93] ('Walford').
[45] Although "or" is used between economic loss and rectification costs.
[47] Woolcock Street Investments Pty Ltd v CDG Pty Ltd [2004] HCA 16; (2004) 216 CLR 515 ('Woolcock').
[49] Makawe Pty Limited v Randwick City Council [2009] NSWCA 412 [124-129].
[50] Owners Corporation Strata Plan 76841 v Ceerose Pty Ltd [2017] NSWCA 140; Walford; Duncan & Anor v Bert Farina Constructions Pty Ltd [2023] SADC 37; Woolcock at [103-105] per McHugh J.
[51] A similar provision existed in its predecessor s 73 of the Development Act 1993 (SA).
[52] Which provides "Despite anything to the contrary in the Limitation of Actions Act 1958 or in any other Act or law".
[53] Johnson v Northern Territory of Australia [2014] NTSC 18 ('Johnson').
[55] Duncan v Bert Farina Constructions Pty Ltd [2024] SASCA 67 at [108] ('Bert Farina').
[57] In P Handford's Limitation of Actions - Laws of Australia (3rd Ed, 2011) at p 126 in discussion of the applicability of Limitation Act extension provisions, the author notes that "In South Australia this provision no longer applies to actions in respect of defective building work. The 10-year limitation period applies to such actions". The footnote provides "There is no equivalent exclusion in the Building Act 1993 (NT)".
[58] Affidavit of Jamie Elkins made on 21 August 2024, Annexure JRE-2.
[59] For example, if extension of time sought in respect to the limitation period in the Building Act 1993 (NT) then s 44(1) of the Limitation Act 1981 (NT) would apply. If an extension of time was sought in respect to the limitation period provided in s 12(1) of the Limitation Act 1981 (NT) then s 44(3) of the Limitation Act 1981 (NT) would additionally apply, because any application sought to extend a limitation period sought by "this Act". See Johnson v Northern Territory of Australia [2016] NTSC 49 at [339].
[60] Citing Phillis v J Anderson Constructions Pty Ltd & Ors; Stephan & Anor v J Anderson Constructions Pty Ltd & Ors [2020] NTSC 70 ('J Anderson Constructions').
[62] Clause 12 of the original endorsement annexed to the Writ dated 5 July 2024.
[63] Zurich Insurance Company Ltd v Koper [2023] HCA 25.
[64] Affidavit of Jamie Elkins made 13 March 2025 at [14] and the proposed Second Amended Writ.
[65] Rule 1.09 ""pleading" includes an endorsement of claim on a writ which constitutes a statement of claim and includes particulars of a pleading.
[67] See AGC Industries at [38].
[68] Noting that no statement of claim or defence has yet been filed and therefore any costs thrown away should be negligible.
KTLP Enterprises Pty Ltd & Anor
GT Builders Pty Ltd [2025] NTSC 80
(1991) 173 CLR 231
(1992) 2 NTLR 19
(1996) 133 FLR 347
(1992) 175 CLR 514
(2004) 216 CLR 515
(1985) 157 CLR 424
(2006) 150 LGERA 184