The judgement was handed down in the NSW District Court in Sydney. Photo: NSW Courts.
A Riverina family has been awarded $1.25 million after a court found a newly built home was so badly damaged by foundation problems that the best solution was to knock it down and start again.
The NSW District Court found builder JG King Pty Ltd was responsible for defects that caused the concrete slab beneath the house to move, resulting in extensive damage to the home.
According to a judgment published this month, Judge Susanne Cole ordered the builder to pay Adrian and Letticia Di Lullo the maximum $1.25 million the District Court could award.
The family’s home was built in the Jerilderie area in 2017 after the builder recommended it be constructed on a concrete “waffle slab”.
But the slab began to suffer what is known as “edge heave” after poorly compacted sandy fill provided a pathway for water to reach the edge of the slab.
The movement caused the slab to lift at its edges, changing it from a flat structure into an “irregular dish-shaped structure”.
The house built on top of the shifting foundation was subsequently extensively damaged.
According to photographs provided to the court, the damage included the front door separating from the adjoining internal wall, lifting walls in the laundry, significantly increased cracking in the master bedroom wall and the ceiling lifting from the internal wall of the pantry.
The builder argued the house could be repaired, including fixing the concrete slab and then repairing the damage inside the house, for an estimated cost of just under $200,000.
The Di Lullos argued the house should instead be demolished and rebuilt.
Judge Cole rejected the repair option, finding it carried too much risk and uncertainty.
“Concerns have been raised by several of the experts that some of the work required would not be undertaken with a guarantee or warranty. There is also doubt about whether any insurer would insure the work or the house,” she noted.
The court determined the cost of demolishing the existing house and slab, removing the problematic sandy fill and rebuilding the home, along with providing alternative accommodation for the Di Lullos while this was undertaken, would be about $1.3 million.
However, the District Court’s jurisdictional limit meant the family was awarded $1.25 million.
The builder had also argued the Di Lullos contributed to the damage by overwatering their lawn, landscaping and failing to control plumbing leaks.
The judge rejected the claim, finding the Di Lullos were not guilty of contributory negligence.
“There has been no carelessness or breach of duty on their part,” Judge Cole ruled.
“It was not established that any work done by Mr Di Lullo on the property caused the damage to the waffle slab or the house. The Di Lullos were not told and could not have known about the vulnerability of the waffle slab. Rainfall and lawn watering are events which can be expected to arise and it is reasonable to expect a newly constructed house to withstand them.”
In a 2025 ruling, the court previously found the builder had breached its obligations under NSW home building laws and its duty of care to the Di Lullos.
The latest judgment dealt with the damages phase of the long-running dispute, with the court ordering JG King to pay $1.25 million.
The issue of legal costs is yet to be determined.
Gary Delpiano exactly! I’m happy to pay for my meal and drinks, but I have no desire to pay for… View