Chase v de Groot - [1994] 1 NZLR 613

Tort — Negligence — Duty of care — Pure economic loss — House sale — Owner/builder also vendor — Foundations not complying with building permit — House subsequently demolished — Pure economic loss direct and foreseeable — Whether nature of loss should be considered when deciding whether a duty of care existed — Whether owner/builder's duty of care extended to pure economic loss.

Tort — Negligence — Contract for sale and purchase of house — Exclusion clause acknowledging inspection of land and improvements by purchasers and reliance on their own judgment — Whether clause effectively excluded vendor's antecedent duty of care in tort owed to purchasers — Clause referred to contractual representations or warranties made by the vendor or vendor's agent — Whether "made" indicated that clause was concerned with express representations or warranties — Whether clause amounted to express and unambiguous exclusion of liability in negligence — Whether clause confined to matters which were or ought to have been reasonably apparent upon inspection.

Tort — Negligence — Insurance — Sale of house by owner/builder — Foundations not complying with building permit — House demolished — Whether purchasers had suffered loss when insured — Extent of insurer's obligations to reinstate — Exclusion of cover for faulty or defective workmanship or design — Whether purchasers might have claim within concept of faulty or defective workmanship or design — Whether fact of full insurance a defence to a tortfeasor.

Tort — Negligence — Damages — House foundations not complying with building permit — Inadequate foundations discovered after fire damaged house — House demolished — Section subsequently sold — Whether reinstatement inappropriate measure of damages.

Damages — Assessment — Sale of house by owner/builder — House foundations not complying with building permit — Inadequate foundations discovered after fire damaged house — Purchasers relocated due to job commitments — Reinstatement of house inappropriate measure of damages — Assessment based on diminutive value — Appropriate valuation date if house had been reinstated — Proper method of assessing diminutive value.

Contract — Building contract — Exclusion clause — Sale of house by owner/builder — Foundations not complying with building permit — Acknowledgment by purchasers of reliance on own judgment — Exclusion of any "representational warranty" made by vendor — Effect of clause — Whether antecedent tortious liability excluded — Whether representations or warranties concerned only with express representations or warranties — Requirements for exclusion of liability in negligence.