Defects in common property of strata developments in Singapore: Representative actions against developers

Abstract

Purpose

The paper seeks to consider the basis on which a management corporation can represent original and subsequent purchasers of units in strata developments in a representative action against developers; the significance of unit owners' share values when courts award compensation; vicarious liability; and developers' use of the “independent contractor” defence in relation to its liability for defects in common property.

Design/methodology/approach

The paper analyses cases from several common law jurisdictions, with a focus on Singapore Court of Appeal decisions.

Findings

The paper highlights the problems posed as a result of the doctrine of privity in relation to management corporations' claims against developers for defects in common property; the implications of unit holders' share values; and the circumstances in which developers can avail themselves of the independent contractor defence.

Practical implications

The paper will be instructive to developers, contractors, management corporations and both original and subsequent purchasers of units in strata developments.

Originality/value

The paper brings to focus the importance of due consideration by the management corporation before it commences a representative action on behalf of the subsidiary proprietors; and also highlights procedures and/or legislation that need to be implemented, failing which there may be financial implications that can render a “successful” litigation against the developer a pyrrhic victory.

Citation

Christudason, A. (2007), "Defects in common property of strata developments in Singapore: Representative actions against developers", Structural Survey, Vol. 25 No. 3/4, pp. 306-318. https://doi.org/10.1108/02630800710772872